Nicosia scrambles to ease sanctions burden

The Registrar of Companies will accept requests from service providers to replace sanctioned persons with other persons, according to reliable sources.

Chairman of the Cyprus Bar Association Christos Clerides had told CNA on Tuesday that the law firm under sanctions, provided management consultant services to a large number of companies, placing its own lawyers or secretarial services in these companies and, given the sanctions, the banks froze the accounts of these companies, i.e. the clientele.

According to Clerides, in order to free themselves, the companies transferred the shares held by the office or lawyers of the office and filled out the forms in relation to the management counselors, the secretariat "in order to have nothing to do with the office so that they can unfreeze the accounts."

However, Irene Mylona-Chrysostomou, Registrar of Companies and Intellectual Property requested, through the Ministry of Commerce, an opinion from the Law Office whether she is obliged to provide these changes. The opinion of the Law Office has been given on May 12.

According to a reliable source, the changes will be accepted for companies that are not related to and not involved in the reasons that brought their providers into a status under sanctions.

The Registrar of Companies had told CNA that until Wednesday there were around 500 requests, while many lawyers and accountants who will want to take over these companies are awaiting the final decision on how to handle the matter.

According to a reliable source, intense diplomatic efforts are underway for the banks to come to an agreement with the US and UK authorities so as to unfreeze funds in order to pay for the salaries of the employees in those companies.

It is noted, however, that this is an issue for the banks and as a result the government cannot intervene.