Other services - Hong Kong - China Connect securities
Compliance
The U.S.A. asserts jurisdiction over transactions involving securities issued or held for custody in the U.S.A., even where the link between the transaction and the U.S.A. is quite attenuated. Some U.S. economic sanctions laws have extraterritorial effect and others impose or threaten third parties' actions with secondary boycotts, which may affect the third parties' access to U.S. financial or other markets. U.S. financial institutions and, in some cases, their foreign-incorporated subsidiaries and affiliates, are subject to U.S. regulations, even when operating outside the U.S.A. CBL intermediates transactions involving securities in which the U.S.A. is the jurisdiction of issuance or custody. CBL also engages U.S. financial institutions to provide custody, depository and other services in selected non-U.S. jurisdictions based on the quality of the services offered and CBL’s other requirements. Such U.S.-owned or controlled institutions may be required to refuse or even block/freeze transactions directly or indirectly involving parties subject to U.S. economic sanctions regulations, regardless of the law of the jurisdiction in which the U.S. institution operates. CBL conducts its business to comply with all laws applicable to CBL. Accordingly, CBL may not be able to complete or may refuse or block/freeze transactions in or through a CBL account that, in CBL's judgment, may expose CBL to U.S. laws and regulations even where neither CBL nor the customer is directly subject to such laws, but where CBL’s chosen custodian or depository is subject to such laws.
Where a U.S.-linked institution serves as CBL’s custodian or depository, the customer acknowledges and accepts the obligation to comply and ensure compliance by any of the customer’s underlying clients, up to the ultimate [legal and] beneficial owner, with any U.S. law, regulation, sanction, order, judgment, injunction, asset freeze, blocking regulation or order or any other act or action of, or by, any national or foreign government, authority, court, (self-) regulatory organisation, government agency or instrumentality of government, including, but not limited to, investment and holding restrictions (“U.S. Regulations”) applicable to any of the customer, its underlying clients or CBL. The customer shall not hold or seek to hold CBL liable for actions by CBL’s chosen custodian or depository to comply with U.S. Regulations applicable to such custodian or depository. The customer shall not, by action or inaction, cause CBL to violate a U.S. Regulation and shall be liable for and hold CBL harmless against any direct or indirect loss, claim, damage, liability or expense, imposed on or incurred by or asserted against CBL in connection with any actual or alleged non-compliance with the aforesaid by the customer or any underlying client of such customer up to the ultimate [legal and] beneficial owner.
Please also refer to the Resource Center of the U.S. Department of the Treasury.
Disclosure requirements
Securities
Please refer to the Dislosure Requirements - Hong Kong.
Cash
With respect to the CNY cash account with ICBC Singapore Branch, People Bank of China (PBoC) and/or the Monetary Authority of Singapore (MAS) are entitled as per the laws and regulations applicable to ICBC Singapore Branch, to seek for any information regarding cash transactions. Accordingly, in compliance with the Chinese and Singapore regulatory and legal requirements applicable to CNY transactions, Clearstream is under the obligation to disclose to ICBC Singapore any relevant information or data on the CNY transactions upon request of PBoC and MAS.
In addition, as ICBC Singapore Branch is supervised by MAS, MAS has a right of inspection on all the cash activities CBL has undertaken with ICBC Singapore Branch in accordance with Chapter 19 of the Singapore Banking Act.
The information and data requested by and provided to the regulators may include, without limitation, Customer and counterparty's names and content of the transactions. Please note that this list is not exhaustive and is subject to regulators' request. Customers using ICBC Singapore Branch for CNY transactions consent and are hereby deemed to consent to such disclosure. Customers who do not want to grant such authority to CBL should refrain from using Clearstream/ICBC Singapore Branch for CNY transactions.
Foreign exchange
Foreign exchange services for HKD and CNY are available to customers on a case-by-case basis, upon request. To complete foreign exchange conversions for HKD and CNY, customers should contact CBL’s Treasury Desk directly by authenticated means of communication.
Tax services
Please refer to the Clearstream Banking Hong Kong Tax area.
Note: U.S. securities eligible in CMU and CCASS will be subject to 30% NRA withholding tax at source. CBL is unable to offer or support any reclaim service for such securities.