CAPTRACE receives all data of the private investors such as place of residence, contact addresses and date of birth from the banks during the Share-ID query.
Why?
There are several reasons why only European service providers receive information from banks about investors.
Data protection: Banks are obliged to protect the privacy of their customers. This includes the disclosure of personal data to third parties. Data protection regulations in the European Union (EU) are stricter than those in other countries.
Regulatory requirements: The EU has put in place regulations to increase transparency in financial markets. These include rules on the disclosure of information about investors. These rules also apply to third-party service providers that receive investor information from banks.
Here are some concrete examples of the reasons why only European service providers get information from banks to investors:
Data protection: A bank does not want to pass on its customers‘ data to a third-party service provider in the USA, as the latter could possibly pass on the data to US authorities.
Money laundering prevention: A bank does not want to pass on its customers‘ data to a third-party service provider in Asia, as the latter could potentially misuse the data for money laundering purposes.
Regulatory requirements: A bank does not want to share its customers‘ data with a third party service provider in Australia as it is not subject to the same regulatory requirements as banks in the EU.
It is important to note that these reasons are only general. In each individual case, there may be other reasons why a bank does not provide information about investors to a third party service provider
