Dear clients,

I hope this e-mail finds you well.

According to the application of the Law Against Tax Fraud (No.9416) which is regulated in Executive Decree No. 41040-H named Registry of Transparency and Final Beneficiaries, through the circular letter DRI-008-202 issued by the National Registry, we inform you the following:

"The National Registry will not issue certificates of incumbency or register documents in favour of entities obligated to make the Registry of Transparency and Final Beneficiaries that appears on the list of non-compliers of this registry, which is established in the article 22 of thise regulation…”. This in accordance with the provisions of Article 25 of the said Decree.

Nowadays, the National Registry has a computerized tool for consulting the status of legal entities determined as obliged to file the Registry of Transparency and Final Beneficiaries. With this digital system "CES" (spanish acronym for Consultation of Corporate Statements), the registrars have access to verify whether or not the obligated entities complied with said registry.

This circular has been in force since May 01, 2020, so it is important to take into consideration the following:

• For registrations before the National Registry, registrars must consult first the "CES" database in order to confirm if the entity, in whose favor the Public Instrument will be registered, has complied with the provisions of Law 9416 and Decree 41040-H.
• In cases where entities are listed as non-compliant, the document will not be registered and the non-compliant will be recorded as well.
• For the registration of all types of liens, mortgages, rentals, etc., the "obligated entity" will be the legal entity in favour of which the lien is imposed; clarifying that in the case of cancellation of mortgage liens, the one who receives the benefit will be the debtor company.
• In relation to trust contracts, every party of the trust will be consulted (Trustees and Trustors).
• Because of the legal nature of court documents (commandments and enforcement of judgments, etc.), there is no obligation to consult them before the "CES" database.

If you have any questions or comments please do not hesitate to contact us.

We are at your service.

Best,