Anti Money Laundering (AML) in Greece
Money laundering in Greece is an ongoing problem and the Government of Greece has been consistently diligent in maintaining its strong Anti Money Laundering (AML) regime.
While not a major financial center, Greece is vulnerable to money laundering related to narcotics trafficking, prostitution, contraband cigarette smuggling and illicit gambling. Money laundering in Greece is controlled by organized local criminal elements associated with narcotics trafficking, and narcotics are a primary source of laundered funds. Most of the funds are not laundered through the banking system. Rather, they are most commonly invested in real estate, hotels and consumer goods, such as automobiles. Implementation of regulatory requirements documenting the flow of large sums of cash through financial and other institutions is weak.
In 1995, Greece criminalized money laundering derived from all crimes by issuing the Law entitled, Prevention of and Combating the Legalization of Income Derived from Criminal Activities. This Law imposes a penalty for money laundering of up to ten years in prison and confiscation of the criminally derived assets. The Law also requires that banks and non-bank financial institutions file Suspicious Transaction Reports (STRs). In addition, the Law established the Competent Committee (CC) to receive and analyze STRs and to function as Greece’s Financial Intelligence Unit (FIU).
Greece is a member of the Financial Action Task Force (FATF), the European Union (EU) and the Council of Europe. The CC is a member of the Egmont Group.
AML Training in Greece
Under Greece’s Prevention of and Combating the Legalisation of Income Derived from Criminal Activities Law, financial institutions in the country are required to initiate an AML training program that teaches employees how to detect and prevent money laundering and other financial crimes. The AML program must include instruction on how to conduct proper customer identification and how to handle suspicious transactions.
The Economy of Greece
In the past Greece prospered from agriculture, but more recently the country has seen industry replace agriculture as the leading source of income. This growth has resulted in a thriving capitalist economy with the public sector accounting for about 40% of the Gross Domestic Product (GDP). Tourism, an element of the growing service sector, provides an essential source of revenue to Greece and supplies 15% of GDP.
The economy remains an important political issue in Greece and, while the government has had some success in improving economic growth and reducing the budget deficit, the country faces long-term obstacles in its effort to continue its economic reforms, social security reform and privatization.
Banking in Greece
Established in 1927, The Bank of Greece is the Central Bank of the country. The overall objective of the Central Bank is to maintain the stability of the economy in Greece. In addition, the Bank of Greece is responsible for issuing currency, formulating monetary and exchange rate policy, maintaining foreign exchange reserves, supervising the country’s financial system, and acting as the treasurer to the Greek government.
The Bank of Greece is a member of the European Central Bank (ECB). The ECB’s primary responsibility is to maintain the purchasing power of the Euro.
The monetary functions of the ECB include: the opening of accounts for credit institutions, public entities and other market entities; open market and credit operations; requiring credit institutions to hold minimum reserves, regulating to create an efficient and sound clearing and payments system; and co-operating with third country central banks, credit institutions and international organizations.
The ECB has the exclusive right to set interest rates for the Eurozone.
Grecian Currency
The currency in Greece is the Euro, which serves as the currency of the 15 members of the European Central Bank. The states that have adopted the Euro as currency make up the Eurozone. These countries are: Austria, Belgium, Cyprus, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain. The Euro is the single currency for more than 320 million Europeans.
The Euro was first phased into the global economy in 1999. In the beginning, participating countries had to combat the use of both Euros and former national currencies. Beginning in 2002, national currencies were withdrawn.
The Euro comes in both banknotes and coins. Banknotes are available in 5, 10, 20, 50, 100, 200 and 500 denominations. Coins are available in 1, 2, 5, 10, 20, 50 cent pieces, and 1 and 2 Euro coins.
Other Key Statistics of Greece
Time Zone: UTC+2 (7 hours ahead of Washington, DC during Standard Time).
Daylight Savings Time: +1hr, begins last Sunday in March; ends last Sunday in October.
Location: Southern Europe, bordering the Aegean Sea, Ionian Sea, and the Mediterranean Sea, between Albania and Turkey.
Population: 10,722,816 (July 2008 est.).
Labor Force: As of 2004, 12% of the population was working in agriculture, 20% in industry and 68% in services. The unemployment rate in 2007 was listed at 8.3%.
Languages Spoken: Greek (official), English and French.
Trade Organizations: Ghana is a member of the World Trade Organization (WTO) and the United Nations (UN).
