Corporate Governance Requirements for Greek Credit Institutions

Introduction

This article provides an overview of the corporate governance requirements for Greek credit institutions. It covers various aspects, including the Corporate Governance Code, registration and oversight of senior management, remuneration requirements, and anti-money laundering/know your customer (AML/KYC) practices.

Corporate Governance Code

The Hellenic Corporate Governance Council has issued a new code that facilitates the formulation of corporate governance policies and practices for listed companies. This code is designed to promote good governance practices and ensure transparency within Greek credit institutions.

Registration and Oversight of Senior Management

Directors’ and Senior Management Designation

• The members of the Board of Directors (BoD) and senior management are proposed based on suitability criteria, including honesty, integrity, and independence of mind.
• This ensures that only qualified individuals are appointed to key positions within the credit institution.

“Fit and Proper” Assessment

• BoD members and senior managers must meet specific suitability requirements and undergo a “fit and proper” assessment to ensure they possess sufficient knowledge, skills, and experience.
• This assessment is conducted to guarantee that senior management has the necessary expertise to manage the credit institution effectively.

Remuneration Requirements

EU’s CRD IV (as amended) Requirements

• The remuneration policies for categories of staff whose professional activities have a material impact on the credit institution’s risk profile should apply the EU’s CRD IV (as amended) requirements.
• This ensures that the remuneration practices within the credit institution are aligned with European regulations.

Sound and Effective Risk Management

• Credit institutions must adopt sound and effective risk management through their remuneration policies.
• This approach helps to minimize potential risks associated with remuneration practices.

Anti-Money Laundering/Know Your Customer (AML/KYC)

AML/CFT Legislation

• Greek credit institutions are subject to AML/CFT legislation, which implements EU directives.
• This legislation aims to prevent and combat money laundering and terrorist financing activities within the country.

AML Policy and Procedures

• Credit institutions must adopt AML policy and procedures, including customer due diligence, reporting, employee screening, record-keeping, internal control, and compliance management.
• These measures help ensure that credit institutions comply with AML/CFT regulations and prevent potential money laundering activities.