Identifier
Created
Classification
Origin
08ATHENS481
2008-04-01 04:38:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Athens
Cable title:  

GREECE: PROGRESS ON ANTI-MONEY LAUNDERING AND

Tags:  EFIN KNNP MNUC PARN ETRD GR 
pdf how-to read a cable
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RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTH #0481 0920438
ZNR UUUUU ZZH
P 010438Z APR 08
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC PRIORITY 1572
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
UNCLAS ATHENS 000481 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN KNNP MNUC PARN ETRD GR
SUBJECT: GREECE: PROGRESS ON ANTI-MONEY LAUNDERING AND
UNSCR 1803

REF: STATE 21770

UNCLAS ATHENS 000481

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN KNNP MNUC PARN ETRD GR
SUBJECT: GREECE: PROGRESS ON ANTI-MONEY LAUNDERING AND
UNSCR 1803

REF: STATE 21770


1. (SBU) In a meeting on March 18, Bank of Greece (BoG)
officials updated the Economic Counselor and the acting
Deputy Economic Counselor on the BoG,s actions to date in
implementing recommendations made in the 2007 Financial
Action Task Force (FATF) report. These actions include the
restructuring of BoG money-laundering staff in order to
improve money-laundering surveillance and legal changes that
will improve the BoG,s ability to move more quickly against
suspicious activities. EconCouns and DepCouns took the
opportunity to raise reftel points on UNSCR 1803 with BoG
officials. End Summary.

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BoG Progress in Meeting FATF Recommendations
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2. (SBU) Panagiotis Kyriakopoulos, BoG,s Director of
Monetary Policy of Banks, and Ioannis Gousios, Head of
Analysis and Supervisory Assessment of the Bank of Greece
described a restructuring within the BoG that they feel will
improve the BoG,s ability to detect andture and a higher quality of personnel
will help improve the BoG,s implementation of
money-laundering regulations and guidelines, as well as its
ability to conduct surveillance. Taking issue with claims in
the FATF and the INSCR reports that the GoG,s sanctions
against negligent bankers are insufficient, Kyriakopoulos
stressed that the creation of a core expertise within the BoG
is more important to fighting money-laundering than the
application of sanctions. (Note: According to the INSCR
report, some believe that the GoG,s fines against individual
banks that breach their obligation to report instances of
suspected money laundering are not sufficiently prohibitive.
Currently, these fines range from 5,000 to 10,000 euros. End
Note).


3. (SBU) Kyriakopoulos went on to describe several legal
and regulatory changes the BoG is in the process of
implementing in order to address recommendations in the FATF
report. These changes include a legal amendment that will
abolish the current 30-day waiting period that must be
observed before accounts with suspicious activities may be
closed. The change will allow for the immediate closure of
such accounts. Another amendment will allow for the sharing
by banks of data on the identity of customers. In addition,
Kyriakopoulos explained, the BoG is close to finalizing
changes in its surveillance guidelines that will focus a part
of the overall bank surveillance rating ascribed by the BoG
on each bank,s anti money-laundering controls. According to
Kyriakopoulos, this change is important because it recognizes
that a bank,s controls against money laundering are an
important aspect of each bank,s reputation and asset risk
that must be factored into a bank,s overall credit rating.
Those banks that have low scores will be made publicly known,
as a further preventative measure. To help improve credit
controls against money laundering in Greek banks, the BoG has
coordinated two seminars on money laundering issues for all
compliance officers at Greek banks. Finally, Kyriakopoulos
indicated that the new law implementing the EU,s Third Money
Laundering Directive will be passed in June.


4. (SBU) Kyriakopoulos relayed that the BoG has executed an
MOU with seven countries in the region, including Cyprus,
Bulgaria, and Albania. Under this MOU, the BoG and other
banks will conduct joint evaluations of partner banks in
host-countries. The first such joint evaluations will occur
of Greek banks in Cyprus and Cypriot banks in Greece.
Kyriakopoulos indicated that the BoG has much to learn from
Cypress and how they have successfully battled
money-laundering.

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BoG Action Concerning Reftel
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5. (SBU) Kyriakopoulos stated that the BoG has passed the
reftel points on to local banks, which are responsible for
utilizing the information properly. Kyriakopoulos expressed
BoG,s desire to continue to work with post on these and like
issues.
SPECKHARD