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Uncertainty about the “suspended” status of entities registered by the NBC for non-registration of beneficial owners.

Non-fulfillment of the legal obligation by the reporting entities for their initial registration of beneficial owner data or their updating whenever changes occur in these data will have consequences, not only from the financial side such as fines, but also related to the status of their activity on the procedure followed by NBC.

In case of non-fulfillment of the obligation for the above, the NBC and the authority responsible for maintaining the Register of Non-Profit Organizations for the reporting entities will change the status for the reporting entities from “active” status to “suspended” status in the Commercial Register and the Register of Non-Profit Organizations until the payment of the fine and registration of relevant data for the beneficial owners.

Attention! Based on the practice, it has resulted that NBC does not make a prior notice regarding the amount of the fine and the change/transition of the status of the reporting entity as suspended, but on the contrary, the reporting entity can be notified only on its initiative from the notes on the trade extract. If the entity wants to appeal this change/note/decision-making of the NBC, the notification period starts from the moment of registration of the note in the NBC.

Regarding this procedure followed by the NBC, it remains unclear what the “suspended” status means for the entity because neither Law 9901/2008 nor Law 9723/2007 provides this definition, and it is unclear if this ‘status change’ will have consequences for the reporting entity as a taxpayer in the tax administration.

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