Anti-money laundering and counter-terrorist financing measures financing counter-terrorist and laundering Anti-money Anti-money laundering and counter-terrorist financing measures Greece Mutual Evaluation Report Greece September 2019 The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CTF) standard. For more information about the FATF, please visit the website: www.fatf-gafi.org. This document and/or any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. This assessment was adopted by the FATF at its June 2019 Plenary meeting. Citing reference: FATF (2019), Anti-money laundering and counter-terrorist financing measures – Greece, Fourth Round Mutual Evaluation Report, FATF, Paris http://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-greece-2019.html © 2019 FATF-. All rights reserved. No reproduction or translation of this publication may be made without prior written permission. Applications for such permission, for all or part of this publication, should be made to the FATF Secretariat, 2 rue André Pascal 75775 Paris Cedex 16, France (fax: +33 1 44 30 61 37 or e-mail: [email protected]). Photo Credit - Cover: © Stratos Kalafatis, Archipelago, Agra Publications, 2017 Table of Contents Key Findings .................................................................................................................................................................... 3 Risks and General Situation ...................................................................................................................................... 5 Overall Level of Compliance and Effectiveness ................................................................................................ 5 Priority Actions ............................................................................................................................................................ 11 MUTUAL EVALUATION REPORT ............................................................................................................... 13 Preface ............................................................................................................................................................................. 13 Chapter 1. ML/TF RISKS AND CONTEXT ................................................................................................ 15 ML/TF Risks and Scoping of Higher Risk Issues ............................................................................................ 17 Materiality ...................................................................................................................................................................... 21 Structural Elements .................................................................................................................................................... 22 Background and Other Contextual Factors ...................................................................................................... 22 Chapter 2. NATIONAL AML/CFT POLICIES AND CO-ORDINATION ............................................... 33 Key Findings and Recommended Actions ......................................................................................................... 33 Immediate Outcome 1 (Risk, Policy and Co-ordination) ............................................................................ 34 Chapter 3. LEGAL SYSTEM AND OPERATIONAL ISSUES ................................................................... 43 Key Findings and Recommended Actions ......................................................................................................... 43 Immediate Outcome 6 (Financial Intelligence ML/TF) ............................................................................... 47 Immediate Outcome 7 (ML investigation and prosecution) ..................................................................... 58 Immediate Outcome 8 (Confiscation) ................................................................................................................. 69 Chapter 4. TERRORIST FINANCING AND FINANCING OF PROLIFERATION ............................... 75 Key Findings and Recommended Actions ......................................................................................................... 75 Immediate Outcome 9 (TF investigation and prosecution) ...................................................................... 77 Immediate Outcome 10 (TF preventive measures and financial sanctions) ...................................... 84 Immediate Outcome 11 (PF financial sanctions) ........................................................................................... 88 Chapter 5. PREVENTIVE MEASURES ....................................................................................................... 93 Key Findings and Recommended Actions ......................................................................................................... 93 Immediate Outcome 4 (Preventive Measures) ............................................................................................... 95 Chapter 6. SUPERVISION ........................................................................................................................... 109 Key Finding and Recommended Actions ........................................................................................................ 109 Immediate Outcome 3 (Supervision) ............................................................................................................... 111 Chapter 7. LEGAL PERSONS AND ARRANGEMENTS ......................................................................... 125 Key Finding and Recommended Actions ........................................................................................................ 125 Immediate Outcome 5 (Legal Persons and Arrangements) ................................................................... 126 Chapter 8. INTERNATIONAL CO-OPERATION .................................................................................... 131 Key Finding and Recommended Actions ........................................................................................................ 131 Immediate Outcome 2 (International Co-operation) ................................................................................ 133 2 TECHNICAL COMPLIANCE ANNEX .......................................................................................................... 153 Recommendation 1 – Assessing risks and applying a risk-based approach.................................... 153 Recommendation 2 - National Co-operation and Co-ordination .......................................................... 155 Recommendation 3 - Money laundering offence ........................................................................................ 156 Recommendation 4 - Confiscation and provisional measures .............................................................. 157 Recommendation 5 - Terrorist financing offence ....................................................................................... 159 Recommendation 6 - Targeted financial sanctions related to terrorism and terrorist financing160 Recommendation 7 – Targeted financial sanctions related to proliferation ................................... 166 Recommendation 8 – Non-profit organisations .......................................................................................... 168 Recommendation 9 – Financial institution secrecy laws ........................................................................ 173 Recommendation 10 – Customer due diligence .......................................................................................... 174 Recommendation 11 – Record-keeping .......................................................................................................... 177 Recommendation 12 – Politically exposed persons .................................................................................. 178 Recommendation 13 – Correspondent banking .......................................................................................... 179 Recommendation 14 – Money or value transfer services ....................................................................... 180 Recommendation 15 – New technologies ...................................................................................................... 181 Recommendation 16 – Wire transfers ............................................................................................................ 182 Recommendation 17 – Reliance on third parties ........................................................................................ 184 Recommendation 18 – Internal controls and foreign branches and subsidiaries ........................ 186 Recommendation 19 – Higher-risk countries .............................................................................................. 187 Recommendation 20 – Reporting of suspicious transaction ................................................................. 188 Recommendation 21 – Tipping-off