Financial Crime World

Greece’s Efforts to Combat Money Laundering: A Mixed Assessment

Greece has made significant progress in its efforts to combat money laundering and terrorist financing. According to a recent assessment by the Financial Action Task Force (FATF), the country has a solid legal framework in place to tackle these crimes. However, there are areas where improvement is needed.

Understanding Money Laundering Risks

Greece completed its first comprehensive national assessment of money laundering and terrorist financing risks in 2018, providing it with a good understanding of the threats it faces. The country is particularly vulnerable to:

  • The lucrative drug trade
  • Corruption
  • Smuggling of migrants

These factors are considered significant money laundering risks.

Prosecution and Supervision: Areas for Improvement

Despite having a strong legal framework, Greece’s authorities have been slow in effectively prosecuting money laundering cases. The country should prioritize the investigation and prosecution of money laundering as a standalone offense.

Greece’s banking sector is well-supervised using a risk-based approach. However, non-financial entities such as lawyers and tax advisors do not fully understand the risks they face without detailed guidance. Supervision of these sectors can be inconsistent, including the sanctioning of entities that fail to implement measures to prevent criminals and terrorists from using their services.

Challenges in Obtaining Beneficial Ownership Information

Greek investigators have access to databases containing up-to-date beneficial ownership information. However, it is difficult to obtain timely and accurate ownership information concerning the Greek shipping industry, which frequently uses high-risk bearer shares and complex structures involving offshore locations.

Recommendations for Improvement

The FATF has adopted this report, highlighting areas where Greece needs to strengthen its risk-based approach to supervision and implementation of preventive measures. The country should focus on:

  • Prosecution of money laundering
  • Confiscation
  • Preventing misuse of legal structures
  • Non-profit sector

By addressing these areas, Greece can further enhance its efforts to combat money laundering and terrorist financing.