Centralized exchange in Greece

Law 4557/2018 (as amended), which transposed the EU's 5th Anti-Money Laundering Directive (AMLD5) and 6th Anti-Money Laundering Directive (AMLD6) into national law. This law defines "providers of services of virtual assets" and mandates their registration.

HCMC Decision No. 2/902/10.03.2021 (and subsequent amendments), which provides further details on the registration process and ongoing obligations.

Exchanges: Providers engaged in the exchange between virtual assets and fiat currencies, or between one or more virtual assets.

Custody Providers: Providers that offer custodian wallet services, holding, storing, and transferring virtual assets or private cryptographic keys on behalf of customers.

Transfer Services: Services enabling the transfer of virtual assets.

Establish and implement robust AML/CFT policies, procedures, and internal controls in line with national and EU requirements.

Conduct customer due diligence (CDD) and enhanced due diligence (EDD) where necessary.

Monitor transactions for suspicious activities and report them to the Hellenic Financial Intelligence Unit (FIU).

Appoint an AML Compliance Officer and potentially a Deputy AML Compliance Officer.

Regular staff training on AML/CFT.

Fit & Proper Requirements:

Management and key personnel must demonstrate integrity, competence, and absence of criminal records.

Shareholders holding significant stakes may also be subject to assessment.

While not explicitly always requiring a physical office, the VASP must be incorporated in Greece and have its management and operational base within the country to effectively comply with Greek AML/CFT laws and HCMC supervision.

The national AML regime does not impose specific initial capital requirements as stringent as a licensing regime. However, VASPs are expected to have adequate financial resources to operate responsibly and comply with their obligations. The HCMC will assess the financial soundness as part of the registration.

Submission: Submit the complete application package to the HCMC.

Review: The HCMC reviews the application for compliance with Law 4557/2018 and related decisions. They may request additional information or clarifications.

Decision: If approved, the VASP is entered into the HCMC's "Register of Providers of Services of Virtual Assets."

Hellenic Capital Market Commission (HCMC) - Virtual Assets Page:

Law 4557/2018 (Government Gazette A' 139/30.07.2018): This is the primary Greek AML/CFT law, transposing the Fourth AML Directive (EU 2015/849). It established the general framework for obliged entities.

Law 4734/2020 (Government Gazette A' 199/08.10.2020): This crucial law amended Law 4557/2018 to transpose the Fifth AML Directive (5AMLD) into Greek law. It explicitly expanded the scope of obliged entities to include:

Providers engaged in exchange services between virtual currencies and fiat currencies.

Providers of custodial wallet services (holding, storing, and transferring virtual currencies on behalf of customers).

Any other virtual asset service providers as defined by the Financial Action Task Force (FATF) recommendations and subsequent EU legislation.

Law 4816/2021 (Government Gazette A' 118/09.07.2021): This law further amended Law 4557/2018, primarily to transpose aspects of the Sixth Anti-Money Laundering Directive (6AMLD) concerning the criminalization of money laundering offenses.

Law 4991/2022 (Government Gazette A' 214/11.11.2022): This law made further amendments to Law 4557/2018, primarily to incorporate the changes from the EU Regulation on information accompanying transfers of funds and certain crypto-assets (Travel Rule).

Identification and Verification of the Customer:

Natural Persons: Obtain and verify the customer's full name, date of birth, place of birth, nationality, permanent address, and unique identification number (e.g., ID card, passport number). Verification must be done using reliable, independent source documents or data (e.g., government-issued photo ID, proof of address).

Legal Entities: Obtain and verify the entity's name, legal form, address of registered office, company registration number, and the names of the directors. Crucially, they must identify and verify the Beneficial Owner(s) (BOs) – any natural person who ultimately owns or controls more than 25% of the entity, directly or indirectly, or exercises control through other means.

Understanding the Purpose and Intended Nature of the Business Relationship: VASPs must understand why the customer is using their services and the expected pattern of transactions.

Regularly review transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

Screen customers against sanction lists (e.g., EU, UN).

Enhanced Due Diligence (EDD): Required for higher-risk situations, such as:

CDD Information: Copies of the documents and data obtained through the CDD process (e.g., identification documents, beneficial ownership information).

Transaction Records: All relevant records relating to domestic and international transactions, sufficient to reconstruct individual transactions. This includes dates, amounts, types of virtual assets, sender, and recipient information.