Identifier
Created
Classification
Origin
05ATHENS2805
2005-11-03 08:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Athens
Cable title:  

GREEK GOVERNMENT APPROVES NEW ANTI MONEY-

Tags:  EFIN GR 
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UNCLAS SECTION 01 OF 02 ATHENS 002805 

SIPDIS

SENSITIVE

TREASURY DEPARTMENT FOR FINCEN (MARY JO MELANCON)

E.O. 12958: N/A
TAGS: EFIN GR
SUBJECT: GREEK GOVERNMENT APPROVES NEW ANTI MONEY-
LAUNDERING BILL FOR PARLIAMENTARY SUBMISSION


This cable is sensitive but unclassified. Please
treat accordingly; not for Internet distribution.

UNCLAS SECTION 01 OF 02 ATHENS 002805

SIPDIS

SENSITIVE

TREASURY DEPARTMENT FOR FINCEN (MARY JO MELANCON)

E.O. 12958: N/A
TAGS: EFIN GR
SUBJECT: GREEK GOVERNMENT APPROVES NEW ANTI MONEY-
LAUNDERING BILL FOR PARLIAMENTARY SUBMISSION


This cable is sensitive but unclassified. Please
treat accordingly; not for Internet distribution.


1. (U) The Greek government approved October 24 a
draft bill aimed at combating money laundering, which
brings Greek legislation into line with EU directive
2001/97/EC. According to the Ministry of Economy,
the bill greatly extends the ambit of Greece's anti-
money-laundering legislation to a number of new
predicate offenses, including terrorism financing,
trafficking of people, electronic fraud and stock
market manipulation. It also broadens the scope of
individuals who are required to report suspicious
transactions by including more professionals involved
such as auction dealers, accountants and lawyers, and
reinforces the power and responsibilities of the
committee charged with the prevention of money
laundering activities.


2. (U) The so-called "Article 7 Committee," which is
charged with the prevention of money laundering
activities and serves as Greece's Financial
Intelligence Unit, becomes an independent authority
under the new law. It is also given new powers to
access public and private files without being
prevented by tax confidentiality. The Committee's
authority in the evaluation of information transmitted
by different sources in Greece and by international
organizations is broadened. It is authorized to
freeze the assets of and to impose penalties on money
launderers themselves as well as on those who fail to
report illegal transactions.


3. (U) The new law adds greatly to the list of
predicate offenses falling under the law's purview
(Note: New predicate offenses not included in previous
legislation, are noted as "new"):


A.
-- Criminal organization (article 187, paragraphs
1,2,4 and 5 of Penal Code) (New);
-- Terrorist actions (article 187 A of Penal Code)
(New);
-- Terrorism financing as provided by paragraph 6,
article 187A to Penal Code) (New);
-- Acceptance of bribery (article 235 Penal Code);
-- Trafficking of people (article 323 A Penal Code)
(New);
-- Electronic fraud (article 386 A Penal Code) (New);
-- Prostitution and exploitation of women (article 351
Penal Code);
-- Crimes foreseen in articles 4,5,6,7 and 8 of Law
1729/87 regarding the trafficking of drugs;
-- Crimes of Paragraph 15 and 17 of law 2168/93
regarding to the possession of firearms;
-- Illegal trade of antiquities (articles 2, 53-55, 61
and 63 of Law 3028/2002;
-- Crimes foreseen by Law 181/74 "regarding protection
from ion radiation";
-- Trafficking in person (article 54, paragraphs 5,6,7
and 8 and article 55 of Law 2910/2001) (New);
-- Crimes foreseen and punished by articles 3,4 and 6
of Law 2803/2000 that implements the convention on
protection of economic interest of the European
Communities;
-- Crimes foreseen and punished by article 3 of Law
2656/1998 "On combating Bribery of Foreign Public
Officials in International Business Transactions";
-- Bribery of officials of the European Communities or
of Member-states of the European Union as provided by
articles 3 and 4 of Law 2802/2000;
-- Market abuse either by abuse of privileged
information or by manipulation of the market as
provided by regulations of Law 3340/2005 (relating to
the stock market).


B. Any penal offence if the resulting benefit for the
offender is at least 15,000 Euros. (New)


C. Any misdemeanor if it is punished with imprisonment
of 6 months and more and the resulting benefit for the
offender is at least 15,000 Euros. (New)

--------------
Comment
--------------


4. (SBU) This bill represents a significant upgrading
of Greek law aimed at combating money laundering and
terror finance. It sets the stage for a useful visit
to Greece by FinCEN, which will send an unambiguous
signal of the importance Washington attaches to the
bill and its subsequent, effective implementation.
Post will follow implementation of the new law and
evaluate whether the Article 7 Committee lives up to
the new powers it has been granted.

RIES