|2. Legal System and Related Institutional Measures|
|Criminalisation of Money Laundering (R.1 &, 2)|
Greece should ensure that the list of predicate offences includes all of the FATF designated predicate offences and amend Article 1.A.q) of the AML Law to include all offences punishable by at least six months in prison, regardless of the value of the property generated by the offence;
Greece should criminalise self-laundering;
Greece should extend criminal liability to legal persons and ensure that the existing system of administrative and civil liability of companies is used effectively;
The authorities should ensure that ML is a stand alone offence that does not require, in effect and practice, a conviction for the predicate offence.
|Criminalisation of Terrorist Financing (SR.II)|
Greece should amend the scope of the FT offence to make it a crime to collect or provide funds or material support to terrorist individuals or for specific terrorist acts. In addition, terrorist financing should be an offence in itself, whether or not a terrorist act has actually occurred and whether or not funds were used to finance a particular act;
Greece should review and limit the legal defence to the law in Article 187.A (8);
Greece should clarify what “funds” means for the purpose of Article 187A and ensure that the FT offence does not require that the funds be actually used;
Greece should expand the administrative liability with regard to the financing of terrorism.
|Confiscation, freezing and seizing of proceeds of crime (R.3)|
Greece should adopt measures that allow: (1) the confiscation of indirect proceeds; (2) to give courts the power to void or prevent actions involving the proceeds of crime from the time the predicate offence was convicted;
Greece should extend the powers of to all property that could be the proceeds of crime, not just accounts, safe deposit boxes and immovable property;
The Greek general confiscation legislation should provide for freezing on an ex parte basis, with the right to appeal;
Greece should provide guidance on what they consider an instrumentality intended for use in a crime;
Greece should provide guidance on using the various confiscation regimes;
Greece should review its laws and administrative structures so as to have an effective system to trace, seize and confiscate criminal proceeds.
|Freezing of funds used for terrorist financing (SR.III)|
Greece should develop its ability to freeze funds in accordance with S/RES/1373(2001) of designated terrorists outside the EU listing system;
Greek authorities should ensure that the authorities can freeze terrorist assets without first having to open a criminal investigation;
Greece should take the appropriate measures to speed the current process for notifying ministries and the financial sector of entities on UN lists;
Greece should provide guidance to financial institutions as well as DNFBPs on freezing assets of listed entities and should monitor FIs and DNFBPs for compliance with measures taken under the Resolutions;
Greece should adopt a regime of sanctions for failure to follow freezing requests;
Greece should develop publicly known processes for de-listing and unfreezing funds and procedures for allowing payment of basic living expenses and fees in line with UNSCR 1452;
Greece should adopt appropriate procedures through which a person or entity whose funds have been frozen can challenge that measure before a court;
Greece should adopt measures to protect the rights of bona fide third party owners of property that may be involved in terrorist financing.
|The Financial Intelligence Unit and its functions (R.26 and R.30)|
The Greek authorities should consider restructuring the FIU (especially more specialised personnel should be hired to carry out STRs analysis functions and Greece should give consideration to tasking the Committee members with a broad oversight and/or coordination role at national level);
Greece should review the effectiveness of the FIU. For instance, a mechanism for exchange of information with the judiciary would be very helpful to provide the FIU with some useful indicators of effectiveness and more broadly, Greece should adopt measures that ease the mechanisms for exchange of information between the FIU and other competent authorities;
Greece should ensure that the FIU is allocated with sufficient and skilled staff and has a comprehensive IT system to collect and process the STRs (for instance, the FIU should as soon as possible ensure its connection to the FIU.net);
The FIU should take all necessary measures to ensure that the information held is securely protected. The physical security of the facilities should be appropriately ensured and the current STR data system should be properly protected and backed up;
Greece should ensure that the FIU has a more direct and timely access to all financial, administrative and law enforcement information it requires to properly undertake its functions;
More reporting forms should be adopted and the reports published by the FIU should provide information on statistics, typologies and trends.
|Law enforcement, prosecution and other competent authorities (R.27 & 28)|
Greece should promote a more proactive approach to detect and expose third party ML cases as opposed to self-laundering and consideration should be given to a greater specialisation of prosecutors and judges in financial crime and ML cases;
Consideration should be given to making use of special investigative techniques in relation to ML and FT as they have proved successful in relation to drug trafficking;
Particular attention should be paid to establish effective coordination and information sharing between Customs and other law enforcement authorities in relation to the implementation of the controls on cash and bearer negotiable instruments leaving and entering the Greek territory, so as to enable the use of special investigative techniques in relation to cash.
|Cross border declaration or disclosure (SR.IX)|
Greece should implement measures conforming to the requirements of SR.IX.
|3. Preventive Measures–Financial Institutions|
|Risk of money laundering or terrorist financing|
Greece should develop a less selective and partial approach to risk and carry out full risk assessments in order to identify areas of higher or lower ML/FT risk.
|Customer due diligence, including enhanced or reduced measures (R.5 to 8)||General|
Greece should make sure that all basic CDD obligations as defined by the FATF are set out in the AML Law;
Greece should take steps for insurance brokers and agents to be brought within the scope of the AML law, and thus the CDD requirements;
Greece should engage with the private sector to promote compliance with the CDD requirements;
In relation to Recommendation 5:
Greece should consider adopting an express requirement precluding the opening and maintenance of anonymous or numbered accounts;
Financial institutions should be required to conduct CDD in all of the situations required by the FATF Recommendations, notably where there is a suspicion of money laundering or terrorist financing, and where doubts arise as to previously obtained CDD information;
In relation to simplified and enhanced due diligence, Greece should consider expanding and updating the guidance issued by competent authorities, and consider including more guidance on how to apply the provisions on a risk-based basis;
Financial institutions should be required to identify legal persons and beneficial ownership in the circumstances set out in FATF standards;
Firms supervised by the HCMC and firms in the insurance sector should be required to conduct ongoing CDD in line with FATF requirements;
The timing of verification of high risk customers should be properly regulated and be in line with FATF requirements;
The requirements to conduct CDD in respect of existing clients in the AML Law and the securities and insurance sectors should be in line with the FATF standards;
All financial institutions should be subject to a clear requirement to ascertain the nature and purpose of the business relationship;
Competent authorities should clarify SIs’ responsibilities in situations where full CDD information cannot be obtained.
In relation to Recommendation 6:
The securities and insurance sectors should be required to identify and conduct CDD on PEPs;
The requirements relating to PEPs should cover PEPs from EU countries and impose a specific requirement to obtain senior management approval before the business relationship commences;
The requirement to identify a PEP’s source of wealth should be explicitly stated;
In relation to Recommendation 7:
The provisions in relation to cross-border correspondent banking should be extended to include institutions in EU member states;
In relation to Recommendation 8:
Measures should be mandated to fully implement Recommendation 8 (i.e. introduce requirements for the securities or insurance sectors; adopt requirements for SIs to have measures in place to prevent misuse of technological developments and ensure that the existing BOG measures to deal with the risks of non face to face business apply to all FIs).
|Third parties and introduced business (R.9)|
Greece should review the use of third parties to conduct CDD in all sectors (particularly in the insurance sector and in situations involving group companies);
Competent authorities should ensure that any appropriate guidance deemed necessary after considering the operation of third party reliance in the financial services sector covers all sectors where this is practised (particularly the insurance sector);
The current provisions adopted of the BOG should be clarified to be fully consistent and in line with the requirements under Recommendation 9.
|Financial institution secrecy or confidentiality (R.4)|
Greece should consider clarifying exactly when the bank secrecy law (Law 1059/1971) is over-ridden by other statutory provisions, and clarify the provisions of the AML Law on matters such as the scope of money laundering/terrorist financing.
|Record keeping and wire transfer rules (R.10 & SR.VII)||In relation to Recommendation 10:
The provisions on record keeping in the AML Law should clearly require retention of business correspondence;
Greece should adopt specific record-keeping requirements or guidelines to ensure that (i) transactions can be fully reconstructed, and (ii) recorded information is available on a timely basis to domestic competent authority.
In relation to SR.VII:
More effort should be made vis-à-vis the financial community to raise awareness with regard to the new requirements applicable to domestic (in the FATF sense) and cross-border wire transfers;
The Greek authorities should adopt effective, proportionate and dissuasive sanctions applicable to infringements of the provision laid down in the EU Regulation on wire transfers.
|Monitoring of transactions and relationships (R.11 & 21)||In relation to Recommendation 11:
Greece should require all financial institutions to examine all complex, unusual etc. transactions, even if suspicion does not technically arise, and impose a clear requirement to document the findings of any examination undertaken;
In relation to Recommendation 21:
All financial institutions should be required to monitor business relationships with persons from countries not or insufficiently applying the FATF standards.
|Suspicious transaction reports and other reporting (R.13-14, 19, 25 & SR.IV)||In relation to Recommendation 13 and SR.IV:
The obligation to submit STRs should be extended to cover all sectors of the financial services industry, and should cover all predicate offences in full (including tax evasion) and all aspects of terrorist financing;
The obligation to report attempted transactions should be clarified;
Greece should review the effectiveness of the reporting system;
In relation to Recommendation 19:
Greece should consider the feasibility and utility of implementing a currency reporting system across all regulated sectors;
In relation to Recommendation 25:
The competent authorities should provide more comprehensive guidance (and take steps to update existing guidance, where appropriate) to improve the effectiveness of suspicious transaction reporting;
The FIU should provide greater and a further range of feedback to competent authorities and reporting institutions to assist in improving the quality of STRs submitted, and to help identify new areas where suspicion might arise.
|Internal controls, compliance, audit and foreign branches (R.15 & 22)||In relation to Recommendation 15:
Financial institutions supervised by the BOG are required to have screening procedures but the link to AML/CFT provisions should be strengthened;
Financial institutions in the securities and insurance sectors should be required to adopt internal procedures and policies;
In relation to Recommendation 22:
Branches and subsidiaries of Greek SIs located in third countries should be required to apply the higher standard, to the extent that local laws and regulations permit;
In the securities and the insurance sectors: (1) Greece should adopt provisions in relation to Rec. 22 that apply to subsidiaries; (2) Greece should adopt some requirements to pay particular attention to situations where branches and subsidiaries are based in countries that do not or insufficiently apply the FATF Recommendations; (3) Greece should adopt an explicit provision to require FIs to inform their home country supervisor when a foreign branch or subsidiary is unable to observe appropriate AML/CFT measures because this is prohibited by local laws, regulations or other measure.
|Shell banks (R.18)|
Financial institutions should be required to determine that a respondent financial institution in a foreign country does not permit its accounts to be used by shell banks.
|The supervisory and oversight system -competent authorities and SROs|
Role, functions, duties and powers (including sanctions) (R.23, 29, 17 & 25)
|In relation to Recommendation 23:
The Greek authorities should introduce a licensing requirement for insurance agents by the insurance regulator. Fit and proper tests should be conducted for all directors of credit institutions;
The BOG should implement a risk-based supervisory program for AML/CFT and adopt a more systematic consolidated approach to the supervision of AML/CFT policies risk management systems. The BOG should improve the quality of the assessment of bureaux de change and money remitters.
The HCMC and the HPISC should implement a robust supervisory programme for AML/CFT purposes with proper inspection procedures.
In relation to Recommendation 29:
The adoption of a proper risk based approach should be considered by the BOG to improve its capacity to use its supervision powers in an effective way;
The BOG should review its use of sanctions to ensure that they are effective, proportionate and dissuasive;
The HCMC should use its supervision powers on a regular and effective basis;
Once established, the HPISC should be given appropriate supervision powers in the AML/CFT area;
In relation to Recommendation 17:
The BOG should review the regime of sanctions applicable for failing to apply AML/CFT requirements and specific sanctions for directors and senior managers should be available and implemented where appropriate;
The HCMC should ensure that the sanctions in place fully meet the FATF standards i.e. are effective, proportionate and dissuasive and are implemented properly;
In the insurance sector, the Greek authorities should adopt sanctions for violations of the AML Law requirements that are in line with the FATF standards and are sufficiently dissuasive.
In relation to Recommendation 25:
The BOG, the HCMC and the HPISC should adopt sector-specific guidance with updated information on ML and FT trends and techniques and a broader scope in order to comprehensively address the FATF requirements.
|Money value transfer services (SR.VI)|
Current provisions in relation to agents of bureaux de change should be clarified since it is not certain that bureaux de change are obliged to inform the BOG of the names and addresses of their agents;
The BOG should improve the quality of the supervision carried in bureaux de change and money remittance companies;
Sanctions should be available to directors and senior management of money remittance companies;
The Greek authorities should review the existence of informal remittance businesses for purposes of registration of licensing and oversight for AML/CFT purposes;
In general, Greece should take immediate steps to properly implement Recommendations 5-7, SR.VII and other relevant FATF Recommendations and to apply them also to the bureaux de change and money remittance companies.
|4. Preventive Measures–Non-Financial Businesses and Professions|
|Customer due diligence and record-keeping (R.12)|
Greece should take steps to fully implement the provisions of the AML Law in respect of DNFBPs and to clarify the drafting in the AML Law to ensure that each relevant section fully applies not only to credit and financial institutions;
The relevant competent authorities should take urgent steps to raise awareness of the relevant provisions of the AML Law as they apply to the DNFBPs they supervise, and to develop guidance relevant to the individual sectors.
TCSPs, internet casinos and casinos on Greek owned or operated vessels should be fully subject to the AML/CFT requirements.
|Suspicious transaction reporting (R.16)|
Greece should take action to ensure that the requirements in relation to Recommendations 13, 14, 15 and 21 are fully implemented within the DNFBP community.
|Regulation, supervision and monitoring (R.24-25)||In relation to Recommendation 24|
Greece should ensure that DNFBPs are subject to effective supervision.
In relation to Recommendation 25
The competent authorities and the FIU should provide guidance and feedback to DNFBPs to ensure that they are aware of their obligations.
|Other designated non-financial businesses and professions (R.20)|
The Greek authorities could take further steps to encourage the development and use of modern and secure techniques for conducting financial transactions that are less vulnerable to money laundering.
|5. Legal Persons and Arrangements & Non-Profit Organisations|
|Legal Persons–Access to beneficial ownership and control information (R.33)|
Greece should adopt measures that improve transparency concerning beneficial ownership and ultimate control of legal persons and ease the access from competent authorities to that information;
A centralised registration system for all legal persons should be established;
The Greek authorities should consider removing bearer shares from their law or otherwise taking measures to ensure adequate transparency regarding beneficial ownership.
|Legal Arrangements–Access to beneficial ownership and control information (R.34)||NA.|
|Non-profit organisations (SR.VIII)|
Greece should implement adequate measures in line with the requirements under SR.VIII;
In particular, Greece should (1) carry out a comprehensive domestic review of its non-profit sector; (2) adopt the necessary measures to protect this sector from terrorist financing through outreach and effective oversight; and (3) implement effective domestic co-operation and information-sharing mechanisms among competent authorities that hold information on non-profit organisations.
|6. National and International Co-operation|
|National co-operation and coordination (R.31)|
The AML/CFT topic should be subject to a broad consultation and debate at national level;
Greece should develop and implement effective mechanisms to enable all authorities dealing with AML/CFT issues to co-operate and collaborate closely and effectively with each other.
|The Conventions and UN Special Resolutions (R.35 & SR.I)|
Greece should ratify the Palermo Convention and fully implement it (in particular, the predicate offences for ML should cover all serious offences; Greece should extend the scope of the ML offence; self-laundering should be properly criminalised and Greece should adopt effective, proportionate and dissuasive sanctions);
Greece should fully implement the Vienna Convention as well as the Terrorist Financing Convention (in particular, Greece should permit the confiscation of indirect proceeds and extend the scope of the FT offence);
Greece should fully implement the UN Security Council Resolutions relating to the prevention and suppression of FT (in particular, Greece should adopt a process that allows freezing of terrorist assets without delay).
|Mutual Legal Assistance (R.36-38, SR.V)|
The application or not of the dual criminality condition in the context of mutual legal assistance should be clarified and subject to clear guidance;
Greece should review the current limitations in relation to the criminalisation of ML and FT to improve Greece’s ability to deliver mutual legal assistance in ML/FT cases and extend its ability to seize and confiscate property derived from predicate offences that are covered by the AML Law;
In the absence of a treaty, Greece should clarify the forms of assistance available for mutual assistance;
Greece should adopt mechanisms that allow the execution of mutual legal assistance requests in a timely way and without undue delays;
Greece should consider establishing an asset-forfeiture fund.
|Extradition (R.39, 37, SR.V)|
Greece should take the necessary steps to ensure that the dual criminality requirement for extradition does not limit its capacity to answer extradition requests;
Greece should review the current limitations in relation to the criminalisation of ML and the applicable thresholds of punishment for some of the predicate offences of ML to improve Greece’s ability to extradite persons sought for this offence.
|Other Forms of Co-operation (R.40, SR.V)|
Greece should take measures to strengthen the capacity of the FIU to exchange information with foreign authorities on AML/CFT matters;
Greece should take measures to ensure that cooperation between financial supervisors and their counterparts in AML matters is effective and is provided in line with the FATF standards.
|7. Resources and Statistics|
|Resources of Competent Authorities (R.30)||in relation to the FIU:
The FIU should employ a permanent professional staff of experienced financial analysts and should be provided with a comprehensive IT system to collect and process the STRs and any type of information it receives, including link analysis software;
The FIU should consider adopt a secure electronic reporting system;
The FIU should ensure its connection to the FIU.net;
The FIU staff should be provided with adequate ongoing training in AML and CFT matters;
The FIU should ensure that high professional standards are maintained when hiring new personnel.
in relation to the law enforcement authorities:
Additional resources should be allocated to ML and FT investigations in the Hellenic Police and the Customs and their staff should be provided with adequate training in AML/CFT matters;
in relation to the prosecution authorities
AML/CFT and financial crime training programs should be continued and developed, including typologies/methods and trends, to improve prosecutorial AML/CFT expertise;
Additional resources should be allocated to the over-worked public prosecutor service so that it can fully and effectively performs its functions;
Consideration should be given to a greater specialisation of prosecutors and judges in financial crime and ML cases (including identification, tracing, seizure and confiscation of criminal proceeds).
in relation to BOG:
the BOG should be provided with more staff with specialist qualifications and expertise in AML/CFT matters to enable it to carry out its supervisory duties effectively;
in relation to HCMC:
the HCMC should be provided with more staff with specialist qualifications and expertise in AML/CFT matters to enable it to carry out its supervisory duties effectively;
in relation to HPISC
the HPISC should be provided with more staff with specialist qualifications and expertise in AML/CFT matters to enable it to carry out its supervisory duties effectively.
|Statistics (R.32)||Review of the effectiveness of the AML/CFT system|
Greece should review the effectiveness of its AML/CFT system on a regular basis;
Collection of statistics
in relation to the FIU: the FIU should publish more comprehensive periodic reports on its activity including detailed statistics, typologies and trends as well as sanitised cases. The Greek FIU should maintain more comprehensive and detailed statistics on STRs and other reports received. The FIU should collect statistics on the number of requests made or received by/from foreign FIUs, including whether the request was granted or refused, and on spontaneous referral made to foreign authorities;
in relation to law enforcement authorities/MOJ: Greece should establish a reliable and comprehensive system to collect statistics on ML/FT investigations, prosecutions and convictions, and on property frozen, seized and confiscated;
in relation to mutual legal assistance: statistics should be collected on (1) requests relating to freezing and confiscation made or received; (2) requests relating to TF; (3) requests relating to predicate offences; (4) the nature of the request, whether it was granted or refused and the time to respond;
in relation to extradition: statistics should be collected on (1) requests relating to ML, TF and predicate offences; (2) requests relating to predicate offences; (3) the nature of the request, whether it was granted or refused and the time to respond;
in relation to the BOG: statistics should be collected on the formal requests for assistance made or received by BOG, including whether the request was granted or refused.
|Other relevant AML/CFT measures or issues||NA|
|General framework for AML/CFT system|
Greece should review the effectiveness of its criminal justice system to understand and address the factors that impact adversely on the ability of the system to commence and complete money laundering and terrorist financing cases within a reasonable timeframe;
In their project to adopt a new AML Law, the Greek authorities should elaborate a more harmonised and sophisticated set of measures in line with international standards keeping in mind the necessary elaboration and integration with existing domestic legislation.