WHAT ARE THE
Money laundering and terrorism financing laws in Greece?
In Greece, money laundering and terrorism financing are serious offences and are governed by the following laws and regulations:
- Law 4557/2018 (Transposition of the EU Fourth AML Directive): This law transposes the provisions of the European Union's Fourth Anti-Money Laundering Directive (EU 2015/849) into Greek law. It sets out the legal framework for preventing and combating money laundering and terrorism financing in Greece, including measures related to customer due diligence, reporting obligations, and supervisory measures.
- Law 3691/2008: This law addresses the prevention and suppression of money laundering and terrorism financing in Greece. It establishes the obligations of financial institutions, designated non-financial businesses and professions (DNFBPs), and other entities to implement AML/CFT measures, including customer identification, record-keeping, and reporting of suspicious transactions.
- Presidential Decree 233/2018: This decree regulates the operation and organisation of the Financial Intelligence Unit (FIU) in Greece, known as the Hellenic FIU. The FIU is responsible for receiving, analysing, and disseminating reports on suspicious transactions related to ML and TF.
- Directive 2018/843/EU (EU Fifth AML Directive): the Fifth Anti-Money Laundering Directive (5AMLD), introduces additional measures to strengthen the EU's AML/CFT framework. Member states, including Greece, are required to transpose its provisions into national law.
- Directive - 2018/1673 - EN (EU Sixth AML Directive): the Sixth Anti-Money Laundering Directive (6AMLD), introduces additional measures to strengthen the EU's AML/CFT framework. Member states, including Greece, are required to transpose its provisions into national law.
WHAT ARE THE
Key obligations reporting entities have under Greek law?
The key obligations under the AML/CTF laws in Greece include:
- Business-Wide ML/TF Risk Assessments: Reporting entities must conduct business-wide risk assessments to identify and assess the money laundering and terrorism financing risks associated with their business activities, customers, products, and services. This involves evaluating the likelihood and potential impact of money laundering and terrorism financing risks and implementing measures to mitigate those risks.
- Internal Controls and Compliance Programs: Reporting entities are required to establish and maintain internal controls and compliance programs to ensure adherence to AML/CTF regulations. This includes policies, procedures, and training programs for employees to detect and prevent money laundering and terrorism financing activities.
- Customer Due Diligence (CDD): Reporting entities are required to conduct customer due diligence procedures to verify the identity of their customers and assess the risk associated with their business relationships. This involves collecting information such as the customer's name, address, identification documents, and the nature of the business relationship.
- Enhanced Customer Diligence (ECDD): In cases where there is a higher risk of money laundering or terrorism financing, reporting entities must apply enhanced customer due diligence measures. This may include obtaining additional information about the customer, the source of funds/wealth, and the purpose of the transactions.
- Employee Training: Regular training must be provided to employees, ensuring they are knowledgeable about AML/CFT laws and regulations, including how to identify and report suspicious activities. Ongoing awareness programs should also be in place to keep staff informed of evolving risks and responsibilities related to money laundering and terrorism financing.
- Suspicious Transaction Reporting: Reporting entities are obligated to report suspicious transactions to the Financial Intelligence Unit (FIU). This includes transactions that are unusual, inconsistent with the customer's known profile or business activities, or otherwise raise suspicion of money laundering or terrorism financing.
- Record-Keeping: Reporting entities must maintain records of customer identification, transactions, and due diligence measures for a specified period. These records must be sufficient to enable authorities to reconstruct transactions and demonstrate compliance with AML/CTF requirements.
- Reporting Obligations to Authorities: In addition to reporting suspicious transactions, reporting entities may have other reporting obligations to regulatory authorities. This may include reporting large cash transactions, cross-border fund transfers, and other activities specified in the regulations.
- Independent Audits and Reviews: Institutions must conduct independent audits and reviews of their AML/CFT programs to ensure compliance with regulations and to assess the effectiveness of their internal controls and procedures.
WHO ARE THE
ML/TF regulators in Greece and what functions do they perform?
In Greece, the regulators responsible for overseeing and enforcing AML/CFT measures are primarily:
- Financial Intelligence Unit (FIU): The Financial Intelligence Unit of Greece, also known as the Hellenic FIU, is the primary government agency responsible for receiving, analysing, and disseminating reports on suspicious transactions related to money laundering and terrorism financing. It operates under the Ministry of Finance and plays a central role in Greece's efforts to combat financial crimes.
- Bank of Greece (BoG): The Bank of Greece regulates and supervises financial institutions, including banks, credit institutions, and payment institutions, to ensure compliance with AML/CFT regulations. It sets guidelines for AML/CFT compliance and conducts inspections to assess the effectiveness of AML/CFT measures within the financial sector.
- Hellenic Capital Market Commission (HCMC): The Hellenic Capital Market Commission regulates and supervises the securities market in Greece, including stock exchanges, brokerage firms, investment funds, and asset management companies. It ensures compliance with AML/CFT regulations within the securities sector and may issue guidelines and regulations to address AML/CFT risks.
- Hellenic Gaming Commission (HGC): The Hellenic Gaming Commission regulates and supervises the gaming industry in Greece, including casinos, betting shops, and online gambling operators. It ensures compliance with AML/CFT regulations to prevent the laundering of illicit funds through gambling activities.
- Independent Authority for Public Revenue (AADE): The Independent Authority for Public Revenue is responsible for tax enforcement and revenue collection in Greece. While not a primary AML/CFT regulator, AADE may play a role in monitoring and investigating financial transactions for potential tax evasion and illicit financial activities.
- Ministry of Finance: The Ministry of Finance oversees AML/CFT policies and initiatives in Greece and collaborates with other government agencies and international organisations to strengthen the country's AML/CFT framework. It may issue regulations, guidelines, and directives to enhance AML/CFT compliance and enforcement efforts.
WHAT ARE THE
Industry sectors subject to ML/TF regulations?
The regulated industry sectors in Greece subject to AML/CFT regulations include, but are not limited to:
Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs are entities or individuals outside the traditional financial sector that are susceptible to being used for money laundering or terrorism financing purposes. In Brazil, DNFBPs may include lawyers, accountants, real estate agents, trust and company service providers, dealers in precious metals or stones, and other professionals or businesses engaged in high-value transactions.
WHAT ARE THE
Penalties for non-compliance with AML/CTF laws?
The penalties for non-compliance with money laundering and terrorism financing laws in Greece can include the following:
- Administrative Sanctions: Regulatory authorities, such as the Financial Intelligence Unit (FIU), the Bank of Greece, and other relevant supervisory bodies, have the authority to impose administrative sanctions on entities found to be in violation of AML/CFT regulations. These sanctions may include fines, warnings, temporary suspensions of operations, or revocation of operating licences.
- Criminal Penalties: Serious violations of AML/CFT laws may lead to criminal prosecution. Individuals or entities engaged in money laundering, terrorism financing, or related offences may face criminal charges, which can result in imprisonment, substantial fines, asset freezing or seizing or any combination of these. Criminal penalties may vary depending on the severity of the offence and applicable laws.
- Civil Penalties: In addition to administrative and criminal sanctions, non-compliance with AML/CFT laws may expose individuals and entities to civil penalties. This could involve legal action brought by regulatory authorities or affected parties seeking damages for harm caused by the violation of AML/CFT regulations.