Sanctions against Russia and Belarus: Reminder
Following Announcement A22123, Clearstream Banking1 reminds clients 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.
Activities restrictions
In this context, and specifically to ensure compliance with Article 5e and 5f of EU Council Regulation 833/2014 (as amended) and Article 1x and 1y of EU Council Regulation 765/2006 (as amended), together referred to as the “Activities Restrictions”, Clearstream Banking reminds that clients are required to identify and to segregate assets belonging to Russian or Belarusian Person defined as:
- Any Russian national or natural person residing in Russia or any legal person, entity or body established in Russia (“Russian Person”) unless such national is also a national of a Member State or a natural person having a temporary or permanent residence permit in a Member State, in a country member of the European Economic Area or in Switzerland;
- Any Belarusian national or natural person residing in Belarus or any legal person, entity or body established in Belarus (“Belarusian Person”) unless such national is also a national of a Member State or a natural person having a temporary or permanent residence permit in a Member State.
The Activities Restrictions apply to securities issued on or after 12 April 2022, including securities issued prior to 12 April 2022, if after that date new securities have resulted from a corporate action or if the amount or number of securities in circulation has increased as a result of taps or rights issues or a corporate action. In addition, and for the avoidance of doubt, units or shares in collective investment schemes that themselves have exposure to securities issued on or after 12 April 2022 are subject to the Activities Restrictions.
Consequently, we require clients to have adequate control systems in place to ensure compliance with these Activities Restrictions. Upon client's disclosure, Clearstream Banking will segregate assets of Russian and/or Belarusian Persons in a dedicated client account to ensure close monitoring. This segregation of assets will also be reflected in the books of fund’s transfer agent.
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, clients may contact Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
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.