United States: Executive Order 13959 as amended - Finance of Communist Chinese Military Companies - Update II
Note: This announcement, originally published on 7 January 2021 and updated on 8 January 2021, has been further updated to include further details on operational requirements. Changes have been highlighted.
Clearstream Banking1reminds customers that effective
09:30 (Eastern Standard Time) 11 January 2021
by means of the United States Executive Order 13959 as amended (the “Executive Order” or "E.O.") transactions involving the purchase by United States persons2 of securities issued by companies on the Non-SDN Communist Chinese Military Companies List published by the Office of Foreign Assets Control (“OFAC”), as well as derivatives of, and securities which provide an economic exposure to, such OFAC-listed securities (collectively, “CMC Securities”), are prohibited. Divestment from such securities by U.S. persons to non-U.S. persons is, however, permitted until 23:59 on 11 November 2021.
For any settlement instructions with trade date 11 January 2021 or thereafter to receive, with or without payment, or to deliver to the domestic market, in respect of the below securities, Clearstream Banking customers must provide a representation of sanctions compliance in the narrative field of their instruction (for example, field :70E::SPRO// of the MT54x instruction) or in a separate authenticated message (for example, MT599) referencing their instruction ID. The required sanctions representation wording is as follows:“EO13959COMP We represent this instruction is compliant with U.S. E.O. 13959 as amended and is not a sale to or an acquisition by or for a U.S. person in breach of E.O.13959". For field :70E::SRPO// and due to the 70-character space restriction of that field, Clearstream Banking customers can provide the key word “EO13959COMP” in this field to denote that they have ensured the full sanctions compliance of the instruction with E.O.13959. This applies to the following securities which are eligible for settlement in Clearstream Banking:
Common Code | ISIN Code | Issuer/Instrument Name |
17971972 | CNE1000001Y8 | SHS AVICHINA INDUSTRY + TECH-H |
027775195 | CNE1000002F5 | CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED |
7975040 | CNE1000003T4 | SHS NANJING PANDA ELECTR. CO. LTD. |
035053794 | CNE100000981 | CHINA RAILWAY CONSTRUCTION CORPORATION LIMITED |
038478036 | CNE100000BG0 | CRRC CORPORATION LIMITED |
133480358 | XS1334803589 | CRRC CORPORATION LIMITED |
133481931 | XS1334819312 | CHINA RAILWAY CONSTRUCTION CORPORATION LIMITED |
For any settlement instructions with trade date 1 February 2021 or thereafter to receive with or without payment or to deliver to the domestic market, in respect of the below securities, Clearstream Banking customers must provide a representation of sanctions compliance in the narrative field of their instruction (for example, field :70E::SPRO// of the MT54x instruction) or in a separate authenticated message (for example, MT599) referencing their instruction ID. The required sanctions representation wording is as follows “EO13959COMP We represent this instruction is compliant with U.S. E.O. 13959 as amended and is not a sale to or an acquisition by or for a U.S. person in breach of E.O.13959". For field :70E::SRPO//, and due to the 70-character space restriction of that field, Clearstream Banking customers can provide the key word “EO13959COMP” in this field to denote that they have ensured the full sanctions compliance of the instruction with E.O.13959. This applies to the following securities which are eligible for settlement in Clearstream Banking:
Common Code | ISIN Code | Issuer/Instrument Name |
210182845 | XS2101828452 | USD 2,693 SEMICONDUC.MANUFAC (REGS) 20-2025 |
018777754 | US81663N2062 | ADR SEMICONDUCTOR MANUFACTURING (ADR1/50SHS) |
154216812 | KYG8020E1199 | SHS SEMICONDUC.MANUFAC ORD REG |
For any settlement instructions with trade date 9 March 2021 or thereafter, to receive, with or without payment or to deliver to the domestic market, in respect of the below securities, Clearstream Banking customers must provide a representation of sanctions compliance in the narrative field of their instruction (for example, field :70E::SPRO// of the MT54x instruction) or in a separate authenticated message (for example, MT599) referencing their instruction ID. The required sanctions representation wording is as follows “EO13959COMP We represent this instruction is compliant with U.S. E.O. 13959 as amended and is not a sale to or an acquisition by or for a U.S. person in breach of E.O.13959". For field :70E::SRPO//, and due to the 70-character space restriction of that field, Clearstream Banking customers can provide the key word “EO13959COMP” in this field to denote that they have ensured the full sanctions compliance of the instruction with E.O.13959. This applies to the following securities which are eligible for settlement in Clearstream Banking:
Common Code | ISIN Code | Issuer/Instrument Name |
19005836 | HK0883013259 | CNOOC LIMITED-CCASS |
12550260 | US1261321095 | CNOOC LIMITED |
015712864 | CNE1000002V2 | CHINA TELECOM CORPORATION LIMITED |
039591812 | HK0000049939 | CHINA UNICOM (HONG KONG)/CCASS 762 |
011399207 | HK0941009539 | SHS CHINA MOBILE LTD (CCASS 941) |
019548449 | US16941M1099 | ADR CHINA MOBILE LTD (ADR1/5SHS) |
011345018 | US16941M1099 | ADR CHINA MOBILE LTD (ADR1/5SHS) |
015709260 | US1694261033 | CHINA TELECOM CORPORATION LIMITED |
011342582 | US16945R1041 | CHINA UNICOM |
Instructions without the required representation of sanctions compliance may not be able to settle or may experience delays in settlement, including at domestic market level.
Customers should take note that the securities listed in this communication will not be made eligible for collateral or lending purposes.
Notwithstanding the above requirements, customers are reminded that according to the Clearstream Banking General Terms and Conditions, they are responsible for ensuring that all instructions settled by them through Clearstream Banking comply with applicable laws, including sanctions.
As a matter of good practice, customers should also observe any investment or selling restrictions (for example, regarding U.S. investors) stipulated in the securities issuance documentation. This includes the documentation covering for example, Structured Products, ETFs and Investment Funds. Clearstream Banking customers therefore need to ensure that instructions in this context are also in compliance with U.S. E.O.13959 as amended and do not represent a sale to or an acquisition by or for a U.S. person in breach of E.O.13959 as amended.
Under Clearstream Banking's terms of business, customers are reminded that, by engaging in or settling any transaction in CMC Securities including exchange-traded instruments using facilities provided by Clearstream Banking, customers represent, and agree that they will be deemed to reconfirm each time they instruct involving CMC Securities using such facilities, that they are aware of the restrictions imposed by E.O.13959 as amended, that they have conducted reasonable due diligence on the parties to the transaction and that the transaction is permissible under E.O.13959 as amended.
Further information
For further information, please contact Clearstream Banking Customer Service or your Relationship Officer.
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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.
2. A United States (U.S.) person is “a U.S. citizen, a U.S. permanent resident alien, an entity organised under the laws of the U.S. (including its foreign branches) or any individual or entity in the United States".