Multilateral Agreement on the exchange of information between the ECB and AML/CFT competent authorities
The Bank of Greece has signed the Multilateral Agreement on the practical modalities for the exchange of information between the European Central Bank and national competent authorities responsible for supervising compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework, pursuant to article 57a(2) of Directive (EU) 2015/849. The Multilateral Agreement strengthens the cooperation between the above supervisory authorities and contributes to the more effective exercise of their supervisory tasks and to the strengthening of the European AML/CFT framework.
Multilateral Agreement on the exchange of information between the ECB and AML/CFT competent authorities
The Bank of Greece has signed the Multilateral Agreement on the practical modalities for the exchange of information between the European Central Bank and national competent authorities responsible for supervising compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework, pursuant to article 57a(2) of Directive (EU) 2015/849. The Multilateral Agreement strengthens the cooperation between the above supervisory authorities and contributes to the more effective exercise of their supervisory tasks and to the strengthening of the European AML/CFT framework.
The Bank of Greece publishes a regulatory framework for digital customer onboarding
• 03/06/2020- Press Release:
By Executive Committee Act 172/1/29.05.2020, the Bank of Greece laid down the terms and conditions for digital customer onboarding by banks and other supervised entities.
Digital customer onboarding possible via video conference or via dynamic selfie.
The new Act encourages the development of flexible and technologically innovative service delivery models in the financial sector, introduces a regulatory framework that is in line with those in place in most EU Member States, and ensures a level playing field for domestic institutions in a rapidly changing international environment. The Act becomes all the more important in the current circumstances of the COVID-19 pandemic and in view of the need to address its impact, as it creates service provision channels compatible with social distancing.
The Act contains a combination of organisational, technical and procedural measures that ensure a reliable identity verification of natural persons and are designed to prevent identity fraud. Two methods of digital onboarding are envisaged: (a) by video conference with a trained agent, which provides the greatest safeguard of security; and (b) an automated procedure via a dynamic selfie, subject to additional safeguard measures.
The identification documents for natural persons that are acceptable are those incorporating enhanced security features, most notably passports. Exceptionally and only as part of the video conference method, ID cards issued by the Hellenic Police, with data written in Latin characters, may be accepted subject to validity and authenticity check through the central portal of the public administration.
Rapid technological advances open up new opportunities for financial corporations, by enabling direct access to online services, faster transactions, lower costs and broader geographical reach. At the same time, however, they present AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) challenges. The new Act seeks to address these challenges by establishing modern rules for secure customer identification and for limiting remote access risks.
Money Laundering and Terrorist Financing Risks due to COVID-19
Important success of Greece in Anti-Money Laundering and Combating the Financing of Terrorism
- 3/9/2019-Publication of the Mutual Evaluation Report of Greece: Financial Action Task Force published the particularly positive Mutual Evaluation Report of the Anti-Money Laundering and Counter-Terrorist Financing Measures of Greece.
Click here to see the FATF announcement.
A Press-Release was also issued from the Ministry of Finance.
- 21/6/2019-Press Release:
The evaluation of the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) System of Greece, based on the revised Recommendation of the Financial Action Task Force (FATF), i.e. the intergovernmental body setting the relevant global standards, was completed with great success in Orlando. On 20/6, the FATF, under the US Presidency, adopted the evaluation report of Greece, according which our country becomes subject to a “regular follow-up” process, a regime that applies to a limited number of assessed countries worldwide. Based on the report, which will be released in six weeks, Greece is ranked among the countries with a high level of compliance with international AML/CFT standards.
As regards the financial sector, the report states that the Bank of Greece identifies and assesses the Money Laundering/Terrorism Financing (ML/TF) risks of supervised sectors and individual companies and applies a risk-based approach to its supervision. Credit and financial institutions also have a good understanding of their ML/TF risks and obligations and apply mitigating measures commensurate with their risks.
The successful evaluation of Greece and its financial sector, based on the revised strict FATF standards, significantly enhances the reputation and credibility of the Greek banking system. Given that financial institutions worldwide are required to assess the country risk of their counterparties, based primarily on FATF’s evaluations, the successful evaluation of Greece is expected to have a positive impact on the correspondent banking activities of Greek banks, as well as on the cross- border transactions and activities of all Greek financial institutions.
The Bank of Greece, having played a significant role in this national effort that started 2.5 years ago with the Assessment of the National ML/TF Risk, congratulates the Ministry of Finance, which coordinated all of the national competent authorities involved, on the successful completion of this important project.
Publication of the National Money Laundering/Terrorist Financing Risk Assessment Report
The first Greek National Money Laundering/Terrorist Financing Risk Assessment Report was published on the Ministry of Finance's website, further to its approval by the Strategy Committee for Combating Money Laundering, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction, in accordance with the provisions of article 8(7.a)(cc) of Law 4557/2018.
Supervised institutions are required to review carefully the said report and take it into account when conducting their ML/TF risk assessments in accordance with the provisions of article 35(1) and (2) of Law 4557/2018 and in the context of the provisions of paragraph 1.3(i)(e) and chapter 4 on risk-based approach of Banking and Credit Committee Decision no. 281/5/17.3.2009. Depending on the segment of activity, supervised institutions should focus on the report's individual chapters relating to threat assessment and especially the vulnerability assessment of the banking sector, and the sectors of life insurance and other financial institutions.
Vulnerability assessments of these sectors were drafted by working groups led by executives of the Bank of Greece Anti-Money Laundering Section with the participation of representatives of both the private and public sectors, and reflect the vulnerability of each financial sector, as established by the intrinsic ML/TF risk of goods and services, and by the evaluation of general audit mechanisms for preventing ML/TF.