Greece -- Travel Rule Implementation Regulatory Overview

Yes, Greece has implemented the principles of the FATF Travel Rule through its national anti-money laundering and counter-terrorist financing (AML/CFT) framework, primarily by transposing the European Union's 5th Anti-Money Laundering Directive (AMLD) and subsequent amendments.

Here's a breakdown of the status:

1. Adoption and Effective Date

• Adoption: Greece transposed the 5th AMLD (Directive (EU) 2018/843) into national law primarily through Law 4734/2020, which amended the existing AML/CFT framework established by Law 4557/2018. This legislation brought Virtual Asset Service Providers (VASPs) under the scope of AML/CFT obligations, including requirements consistent with the FATF Travel Rule.
• Effective Date:
  • Law 4734/2020 was published in the Official Government Gazette (ΦΕΚ Α’ 199/09.10.2020) on October 9, 2020, and became effective upon its publication.
  • The Hellenic Capital Market Commission (HCMC), designated as the competent authority for supervising VASPs, subsequently established a register for VASPs, which became operational in early 2021, indicating active enforcement.

2. Threshold Amounts

• Greece, in line with the EU 5th AMLD and FATF Recommendations, requires VASPs to collect and verify originator and beneficiary information for transfers involving virtual assets equal to or exceeding €1,000.
• This threshold applies to both cross-border and domestic transfers.
• For transfers below €1,000, VASPs are still expected to apply a risk-based approach and conduct due diligence, especially if there are suspicions of money laundering or terrorist financing.
• Important Future Note: The upcoming EU Regulation on information accompanying transfers of funds and certain crypto-assets (Transfer of Funds Regulation - TFR, which will complement the MiCA Regulation) will introduce a zero-threshold for information collection (meaning all transfers, regardless of amount, must have originator and beneficiary information collected) but will maintain the €1,000 threshold for verification of that information. This regulation is expected to become fully applicable by late 2024/early 2025, further strengthening the Travel Rule in Greece and across the EU.

3. Which VASPs are Covered

Law 4557/2018 (as amended by Law 4734/2020) defines "Virtual Asset Service Providers" in a broad manner, covering entities that provide one or more of the following services:

• Exchanging between virtual assets and fiat currencies.
• Exchanging between one or more forms of virtual assets.
• Transfer of virtual assets.
• Custody and/or administration of virtual assets or instruments enabling control over virtual assets.
• Participation in and provision of financial services related to an issuer's offer and/or sale of virtual assets.

All entities performing these services in or from Greece are required to:

• Comply with AML/CFT obligations, including the Travel Rule.

• Register with the Hellenic Capital Market Commission (HCMC). The HCMC maintains a public register of registered VASPs.

• Hellenic Capital Market Commission (HCMC) Official Website: https://www.hcmc.gr/

• HCMC VASP Register (example): You can often find links to the register on their website under "Supervised Entities" or "Registers."

4. Technical Implementation Requirements

Greek law, similar to other EU national transpositions of AMLDs, does not prescribe specific technical solutions (e.g., TRISA, Shyft Network, OTR). Instead, it mandates the outcome:

• Information Collection: VASPs must collect and hold the following information for transfers above the threshold:
  • Originator: Name, address, official personal document number or customer identification number, date and place of birth, and the virtual asset wallet address (if applicable).
  • Beneficiary: Name and the virtual asset wallet address (if applicable).
• Information Transmission: The originating VASP must securely transmit this information to the beneficiary VASP immediately and securely with the transaction.
• Information Verification: VASPs must have robust systems to verify the collected information, especially for transfers exceeding €1,000.
• Record Keeping: All collected information and transaction records must be retained for at least five (5) years after the transaction or termination of the business relationship, and up to ten (10) years if required by law or a competent authority.
• Risk Assessment: VASPs must implement a risk-based approach to identify, assess, and mitigate ML/TF risks, including for transactions below the threshold.
• Data Protection: Implementation must comply with the General Data Protection Regulation (GDPR) (Regulation (EU) 2016/679) regarding the handling of personal data.

5. Penalties for Non-Compliance

Non-compliance with AML/CFT obligations, including the Travel Rule, carries significant administrative and criminal penalties under Greek law. Law 4557/2018 (as amended) outlines these penalties.

• Administrative Penalties (imposed by the HCMC or other supervisory authorities):
  • Fines: Substantial monetary fines, which can range from thousands to several millions of euros, or up to 10% of the total annual turnover for legal entities in the preceding business year. For serious or repeated breaches, the fine can be even higher.
  • Public Statements: Public announcements identifying the non-compliant VASP and the nature of the breach.
  • Temporary or Permanent Prohibition: Suspension or revocation of the VASP's registration or operating license.
  • Removal of Management: Requirement to replace members of the VASP's management body.
• Criminal Penalties:
  • Individuals found responsible for money laundering or terrorist financing activities, or for intentionally facilitating such activities through non-compliance with AML/CFT duties, can face imprisonment and additional criminal fines.
  • Legal entities can also be subject to criminal sanctions, including significant fines and exclusion from public tenders.

Relevant Legislation (Greek Official Gazette – in Greek):

• Law 4557/2018 (Original AML Law): ΦΕΚ Α’ 139/30.07.2018 - https://www.kodiko.gr/nomothesia/document/21262/nomos-4557-2018 (Note: This is a legal database, not the direct gov.gr link, but provides the law content.)
• Law 4734/2020 (Amending Law, including VASP provisions): ΦΕΚ Α’ 199/09.10.2020 - https://www.kodiko.gr/nomothesia/document/267720/nomos-4734-2020 (Again, a legal database showing the law content.)

Disclaimer: This information is for general guidance and informational purposes only, and does not constitute legal advice. VASPs operating in Greece should consult with legal professionals specializing in Greek AML/CFT law to ensure full compliance with all relevant regulations.