DECISION OF THE MINISTRY OF JUSTICE
Application of Customer Due Diligence Measures Against Money Laundering
1. Lawyers and notaries public, as obliged persons, when acting within the framework of the professional activities defined in subparagraph (ig) of paragraph 1 of Article 5 of Law 3691/2008, are required to apply standard customer due diligence measures (Article 13) and enhanced customer due diligence measures (Article 19) with respect to the client, where there are well-founded indications of an attempt or commission of acts of legalisation of proceeds from criminal activities (money laundering), regardless of the amount of the transaction, where such proceeds derive from acts of terrorism, drug trafficking and organised crime.
2. Where the aforementioned persons carry out transactions amounting to at least fifteen thousand (15,000) euros, regardless of whether these are conducted in a single operation or in several operations between which there appears to be some link, they are required to verify the identity of the client on the basis of the documents specified by law (Article 8 of Law 2830/2000 “Code of Notaries Public”), as well as the identity of the beneficial owner or owners of the client company on the basis of the corporate documents produced by the client company.
Avoidance of Transactions Where Money Laundering is Suspected
3. Lawyers and notaries public, when acting within the framework of their professional activities, where there are well-founded indications or where they know that the contemplated act or transaction for which their assistance is sought is connected to the offence of legalisation of proceeds from criminal activities (money laundering), are required to refrain from carrying out the transaction, performing the activity or providing their services. Retention of records and data.
4. Lawyers and notaries public, in the event of investigation of any attempted or committed offence of legalisation of proceeds from criminal activities by the Committee of Article 7 of Law 3691/2008 or by any other competent authority, are required to retain: i) The corporate identity documents of the client at the time of the conclusion of any type of contract, as well as ii) the originals or copies of supporting documents of all types of transactions, for a period of five years following the end of the business relationship with the client or the execution of each transaction. These records are to be retained in printed or electronic form for the period set out above, unless another provision of law or regulatory decision requires their retention for a longer period.
Disciplinary Sanctions in Cases of Money Laundering
5. Where a lawyer or notary public breaches the obligations arising from the provisions of Law 3691/2008, in conjunction with those set out in this decision, the Ministry of Justice, as the competent authority, refers the obliged person to the relevant Bar Association or Notarial Association, to which all the evidence of the breach is forwarded, in order for the disciplinary review provided for under the applicable provisions to be conducted. 6. This regulatory decision is communicated to all Bar Associations and Notarial Associations of the country, in order for them to inform their members of its content.
FREQUENTLY ASKED QUESTIONS ON LAWYERS’ OBLIGATIONS REGARDING MONEY LAUNDERING
1. What sentence do I face if I am charged with money laundering?
The offence of legalisation of proceeds from criminal activities (Law 4557/2018, which replaced Law 3691/2008) provides for sentences of imprisonment (felony) which, depending on the form and the amount involved, may reach significant levels, with the possibility of confiscation of assets. The picture, however, does not call for immediate surrender. The lawyer may seek recognition of mitigating circumstances (prior honest life, subsequent good conduct, sincere remorse under Article 84 of the Penal Code (PK)), suspension of sentence, conversion to a monetary penalty or community service, where the conditions are met. In many cases, challenging the predicate offence from which the proceeds are alleged to derive overturns the charge.
2. What should I do if the notary public has filed a suspicious transaction report?
Where a lawyer or notary public identifies well-founded indications, he or she is required to file a report with the Anti-Money Laundering Authority. This does not automatically mean that the citizen is guilty. The report is assessed by the Authority and, if evidence emerges, it is forwarded to the Public Prosecutor’s Office. A citizen who learns of an investigation or summons to a preliminary inquiry should immediately instruct a lawyer, so that the defence statement can be prepared, evidence of the lawful origin of the funds (tax returns, bank documents, deeds) can be gathered, and the right to silence exercised where appropriate.
3. How long does the criminal procedure take to conclude?
The investigation by the competent Authority and the preliminary inquiry often last several months and even more than a year, particularly where cross-border transactions or foreign financial institutions are involved. The trial at first instance before the competent Three-Member or Five-Member Court of Appeals for Felonies is generally scheduled 1 to 3 years after the bringing of criminal charges, while any appeal extends that timeline. In certain cases, the statute of limitations or defects in the case file may bring about discontinuation of the prosecution more quickly.
4. What documents do I need to produce for my defence?
Essential are those documents which substantiate the lawful origin of the funds: tax assessment notices, E1 and E9 forms covering several years, salary certificates, deeds of sale of real property, evidence of inheritance succession, donations or parental gifts, bank statements, loans and receipts. In addition, the corporate documents of any company are required (articles of association, GEMI, tax records), correspondence with banks or accountant, and any item demonstrating the continuity and transparency of the financial activity. The more complete the documentation, the stronger the defence.
5. What are my chances of avoiding conviction?
It depends on the contents of the case file, but the lines of defence are several. Frequently the charge rests on indications which do not prove a connection with a predicate offence. Challenges may be raised against the existence of the predicate crime, against the defendant’s knowledge of the unlawful origin (intent is required), against the competence of the authority that gathered the evidence, against the lawfulness of the lifting of banking secrecy, or against the credibility of the reports. The principle of “in dubio pro reo” applies. With proper preparation, many cases lead to acquittal, reduction of the charge from felony to misdemeanor, or suspension of sentence.
6. What is the role of the lawyer in a money laundering case?
Our firm undertakes the defence from the first stage of the preliminary inquiry, with study of the case file, substantiation of the lawful origin of the amounts, drafting of memoranda and the defendant’s defence brief, attendance at investigative acts and representation in the courtroom. At the same time, it handles applications for the lifting of account freezes and prohibitions on the disposal of real property, which often affect the defendant before any judgment is even issued. The specialisation of the law firm Ziamparas D. & Associates in Cybercrime and financial offences enables the effective handling of complex cases with a financial and digital dimension.