Financial Crime World

Greece Fights Money Laundering but Lags in Prosecution

Combating Money Laundering Efforts in Greece: Progress and Challenges

Greece has made significant strides in combating money laundering and terrorist financing, but it still faces challenges in prosecuting these crimes effectively. A recent assessment by the Financial Action Task Force (FATF) highlights that while Greece’s anti-money laundering and counter-terrorist financing system is strong on paper, it requires improvement in practice.

Understanding Risks and Challenges

  • Greece has a good understanding of the risks it faces, including:
    • The lucrative drug trade
    • Corruption
    • Smuggling of migrants
  • However, delays in prosecution have hindered efforts to effectively combat money laundering

Banking Sector Supervision

The FATF report notes that Greece’s banking sector is supervised effectively using a risk-based approach. However, non-financial entities such as lawyers and tax advisors lack detailed guidance on their potential exposure to crime or terror-related transactions.

  • Supervision in these sectors is often inconsistent, with some entities failing to implement required measures to prevent criminals and terrorists from using their services

Investigating and Prosecuting Money Laundering

Greek investigators have access to databases of up-to-date beneficial ownership information. However, obtaining timely and accurate ownership information for the Greek shipping industry remains a challenge.

  • The industry frequently uses higher-risk bearer shares and complex structures involving offshore locations

Priorities for Improvement

To effectively combat money laundering and terrorist financing, Greece must:

  1. Strengthen its risk-based approach to supervision
  2. Improve prosecution of money laundering
  3. Enhance confiscation and prevention of misuse of legal structures and the non-profit sector

By taking concrete steps to improve its anti-money laundering system, Greece can better protect its financial system and prevent illicit activities from undermining its economy.