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In relation to the service providers that have been appointed as company officers (Directors or Secretaries) for the provision of administrative services, pursuant to Article 4 of the Regulation of Administrative Services and Related Matters Law of 2012, and have lost contact with the Beneficial Owner/s (BO) of their client, the Department of Registrar of Companies and Intellectual Property of the Ministry of Energy, Commerce and Industry notes the following:

1. According to the provisions of articles 60-66 of the Prevention and Suppression of Money Laundering Activities Law of 2007 (hereinafter the Law), “obliged entities” (within the meaning of the Law) apply customer due diligence and identification procedures upon establishing a business relationship with a client as well as during the course of their cooperation.

b. In particular, article 61(1)(b) of the Law provides that customer identification procedures and due diligence measures include the identification of the beneficial owner’s identity as well as taking reasonable measures to verify that person’s identity. The purpose is, for the obliged entity to be satisfied that it knows who the beneficial owner(s) of their client is and take reasonable measures to understand the ownership and control structure of their client.

1. Furthermore, pursuant to Article 62(6) of the Law, customer identification procedures and due diligence measure requirements are applied not only to all new customers but also, at appropriate times, to existing customers on a risk sensitive basis and when, among other instances, the obliged entity has a legal duty to contact the customer in the course of the relevant calendar year (such as the duty to update the BO Register, Art. 61A(10)(c)), for the purpose of reviewing the essential information related to the beneficial owner(s).
2. Where the obliged entity is not in a position to comply with the customer due diligence requirements of the Law, it must terminate the business relationship it has with the client in accordance with the provisions of Article 62(4) of the Law.

e. As a result, the provision of administrative services offered to the client pursuant to Article 4 of the Regulation of Administrative Services and Related Matters Law of 2012, is terminated.

1. It is furthermore emphasized that, as per the provisions of Article 61A(10)(f)(ii) of the Law, a person who knowingly makes a false, misleading or fraudulent declaration to the Registrar of Companies as to the beneficial owners of its client (company or other legal entity), is guilty of an offense and, upon conviction, shall be liable to imprisonment not exceeding 1 year or to a fine not exceeding €100,000 or both.

On the basis of the above, for the purpose of registering and updating the Beneficial Ownership Register, pursuant to the provisions of the Companies Directive R.A.A 112/2021 (ΚΔΠ 112/2021), any obliged entity appointed as officer in a company that is unable to confirm, verify or ascertain the identity of his client or has lost contact with his client, may resign as officer of the company by submitting to the Registrar of Companies the relevant (HE4) form, terminating in that way their business relationship with their client, in compliance with the provisions of the law.