Sanctions against Russia and Belarus: Reminder
Following Announcement A22063, Clearstream Banking1 reminds customers that it is strongly committed to ensure compliance with regulatory and legal obligations related to international financial sanctions, that is, laws, regulations, embargoes and other restrictive measures enacted or enforced by the United Nations Security Council, the European Union, but also, and as the case may be, by the United States Office of Foreign Assets Control (OFAC), the United Kingdom HM Treasury or by any other relevant jurisdictions.
Selling restrictions
In this context, and specifically to ensure compliance with Article 5f of the amended EU Council Regulation 833/2014 (Russia) and Article 1y of the amended EU Regulation 765/2006 (Belarus), together referred to as the “Selling Restrictions”, Clearstream Banking reminds that customers may not use Clearstream Banking to provide such services to any national or natural person residing in Russia or Belarus or any legal person, entity or body established in Russia or Belarus (collectively “Russian or Belarusian persons”) in relation to securities issued on or after the 12 April 2022, unless such Russian or Belarusian person is also a national of a Member State or a natural person having a temporary or permanent residence permit in a Member State. Consequently, we require customers to identify and to segregate assets belonging to Russian or Belarusian persons so that the necessary controls can be performed. In addition and for the avoidance of doubt, units or shares in collective investment undertakings that themselves have exposure to securities issued on or after 12 April 2022 are subject to the restrictions.
Information for Vestima and VestimaPRIME customers
Companies have approached Clearstream Banking in relation to compliance with the provisions of article 5f of the amended EU Council Regulation 833/2014 (Russia) and article 1y of the amended EU Regulation 765/2006 (Belarus).
In order to ensure compliance with the Selling Restrictions, Clearstream Banking reminds customers to have adequate control systems in place to ensure compliance with these restrictions.
Clearstream Banking may be requested by fund management companies to provide additional due diligence information on end investors holding funds through Vestima. If so, customers will be notified by means of corporate action notifications in order to provide the necessary confirmations to be relayed to the fund management company.
Clearstream Banking will not take any liability for any damage or loss resulting from delay in processing customer’s instructions due to the processing of such due diligence request.
Information to issuers
According to Articles 5e and 5f of the amended EU Council Regulation 833/2014 (Russia) and Articles 1x and 1y of the amended EU Regulation 765/2006 (Belarus), it is prohibited for EU CSDs to provide any services for transferable securities issued after 12 April 2022, to sell transferable securities denominated in any official currency of a Member State issued after 12 April 2022 or units in collective investment undertakings providing exposure to such securities, to any Russian or Belarusian national or natural person residing in Russia or Belarus or any legal person, entity or body established in Russia or Belarus.
Clearstream Banking reminds all issuers of securities eligible in Clearstream Banking to not process new issues linked to Russian or Belarusian persons via Clearstream Banking and to adhere to these restrictions.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.