Black money: 18 months for the freezing of assets

In 18 months the ceiling for freezing is assets persons accused of money laundering.

Otherwise, if the control of a case is not completed within the specified period, all their assets are released regardless of the outcome of the case.

According to a circular issued by the Hellenic Revenue Service following the recent law 4995/2022, which changes the procedures for informing banks, the Bank of Greece and the Hellenic Capital Market Commission, the time for freezing deposits, safe-deposit boxes and other assets is initially set at 9 months but following a decision by the financial prosecutor the time may be be extended for a further 9 months, without the accused being called again for clarification or explanation for tax evasion and black money.

How an extension will be granted

An extension for a further nine months requires a decision of the Appeals Council, if the order was issued by a prosecutor of economic crime or his deputy, or of the Council of Prosecutors, if the order was issued by a deputy prosecutor of economic crime, for a maximum of nine months, due to justified failure to complete the preliminary investigation being carried out.

The order is issued without prior summons of the accused and does not have to mention a specific account, title, financial product, safe deposit box, movable or immovable property.

However, this provision seems to be a source of concern to officials of the Anti-Money Laundering Authority, as the unraveling of money laundering cases is time-consuming, since it requires verification and verification of bank deposits of the persons involved, from foreign banks, even from countries that are considered «tax havens», which either do not provide information or provide it with great difficulty.

Money laundering

According to the legislation, money laundering arises from the following acts:

1. the conversion or transfer of property with knowledge that it is derived from criminal activity or from an act of participation in such activity with a view to concealing or disguising its illicit origin or to assisting any person involved in such activity to evade the legal consequences of his actions,
2. concealment or disguise of the truth concerning the nature, source, disposition, allocation, movement or use of property or the place where it was acquired or is situated, or the ownership of property or rights pertaining thereto, knowing that such property is derived from criminal activity or from an act of participation in such activity,
3. the acquisition, possession or use of property with knowledge, at the time of its acquisition or management, that the property is derived from criminal activity or from an act of participation in such activity,
4. the use of the financial sector by placing in it or moving through it the proceeds of criminal activities in order to make the proceeds of crime appear legitimate,
5. the setting up of an organisation or group of at least two persons for the purpose of committing one or more of the acts referred to in points (a) to (d) and participation in such an organisation or group,
6. attempting to commit, aiding, abetting, inciting, facilitating or counselling a third party to commit one or more of the acts referred to in points (a) to (d).

«Basic offences», according to the law, include the following:

• A criminal organisation, as defined in Article 187 of the Criminal Code,
• terrorist acts and financing of terrorism, as defined in Article 187A of the Penal Code,
• bribery and corruption of an official, as defined in Articles 235 and 236 of the Criminal Code,
• influence-peddling and bribery and corruption in the private sector, as defined in Articles 237A and 237B of the Criminal Code,
• bribery and corruption of politicians and judicial officials, as defined in Articles 159, 159A and 237 of the Penal Code,
• trafficking in human beings, as defined in Article 323A of the Penal Code,
• computer fraud, as defined in Article 386A of the Penal Code,
• trafficking as defined in article 351 of the Criminal Code,
• the stock exchange offences
• tax evasion offences,
• the smuggling offences
• the offences of non-payment of debts to the State

any other offence punishable by a custodial sentence, the minimum term of which is more than six (6) months, and from which a pecuniary benefit results.

Sissy Stavropierrakou