Financial Crime World

Anti-Money Laundering (AML) Requirements in Greece: A Comprehensive Overview

Introduction

Greece has implemented a robust anti-money laundering (AML) framework to combat financial crimes and protect its financial system. This article provides an overview of the key AML requirements in Greece, including legislation, regulations, and compliance obligations.

AML Legislation and Regulations

  • Law 4551/2018: This law implements the EU’s Fourth Anti-Money Laundering Directive (AMLD4) and sets out the general framework for AML/CFT (Combating the Financing of Terrorism) in Greece.
  • Presidential Decree 112/2019: This decree regulates the operation of cryptocurrency exchanges, wallet providers, and other virtual asset service providers (VASPs).
  • Ministerial Decision 1252/2020: This decision sets out the guidelines for customer due diligence requirements and risk assessments for VASPs.

Key AML Compliance Obligations

  • Implementation of AML compliance programmes: Covered institutions must establish, implement, and maintain effective AML/CFT compliance programmes.
  • Suspicious activity reporting (SARs): Suspicious transactions or activities must be reported immediately to the Financial Intelligence Unit (FIU).
  • Customer identification and due diligence requirements: Covered institutions must conduct customer due diligence on new clients, existing clients, high-risk individuals, and politically exposed persons.

Specific Requirements for VASPs

  • Registration with the FIU: VASPs must register with the FIU and obtain a unique identifier.
  • Know Your Customer (KYC) requirements: VASPs must conduct customer due diligence on their clients, including identity verification and risk assessment.
  • Transaction monitoring: VASPs must implement effective transaction monitoring systems to detect suspicious transactions.

Cross-Border Transactions

  • Cross-border transactions are subject to the same AML requirements as local transactions.
  • Covered institutions must report cross-border transactions exceeding €10,000 to the FIU.

High-Risk Countries and Jurisdictions

  • Certain countries and jurisdictions are considered high-risk due to their lack of effective AML/CFT measures.
  • Covered institutions must conduct enhanced customer due diligence on clients from these countries or jurisdictions.

Enforcement and Sanctions

  • Failure to comply with AML requirements may result in administrative fines, penalties, or even criminal sanctions.
  • The Greek authorities take a strict approach to enforcing AML laws and regulations.

By understanding the key AML requirements in Greece, financial institutions and businesses can ensure compliance and avoid the risks associated with non-compliance.