By Resolution MH N°150/2018, issued on November 27 of the current year, the Ministry of Finance decided to suspend the application of sanctions, fines and non-punitive measures derived from Law N° 5895/2017 “Establishing transparency rules in the regime of companies incorporated by shares” and Regulatory Decree N° 9043/2018, until February 17, 2019.

The aforementioned decree establishes the formalities and mechanisms for the execution of the exchange of bearer shares for registered shares, the transfer of shares and the application of fines generated as a consequence of non-compliance with the law. Among the consequences of non-compliance with the new regulations, there are also non-punitive measures such as the blocking of the company's RUC or the suspension of the economic rights of the shareholders.

The application of these measures had been previously suspended by other resolutions of the Ministry. However, the Treasury Attorney's Office and the Undersecretariat of State for Taxation are currently working on the technical adjustments that will allow the payment of fines through the Marangatú system, and require more time to carry out work and tests on such system.

In addition, the significant increase in the number of procedures initiated as from the enactment of the new law and its decree has increased the average number of virtual procedures to around five thousand, and the number of telephone requests has also increased, with more than one thousand calls per day to the Department of Registration and Control of Companies. Consequently, the Ministry of Finance has found it prudent to extend this suspension to allow these institutions to regularize the relevant computer procedures that are overdue.