US embassy cable - 05ATHENS2805

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) 
 
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Comment 
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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