money laundering best practices, lessons to be learnt and steps

showed that drugs, arms, illegal immigrants and cigarettes from South-West Asia and the MiddleEast are smuggled to northern and Western Europe via Greece. Greece is an attractive potentialmoney laundering target also because of the current opening of its economy and financial system,a dynamic banking sector and policing that is often inadequate. Another important parameter thatshould not be neglected is that purchasers of government debt issues receive tax exemption that,if paid in cash, results with them not being subject to any kind of identity requirements. Taking inaccount that the sale of Greek treasury obligations now amounts to about 22.5 billion US dollarsannually, one safe way of laundering money becomes obvious.Recently, the crime phenomenon of money laundering in Greece has taken large dimensions(with a yearly increase of suspicious transactions at the rate of 186%, according to the data of theresponsible Special Committee in 2000), and it is estimated that criminals make annual profits of$11.5 billion within the country. 30During this last decade there has been an important influx of refugees and so-called "economicmigrants" from neighboring Balkan countries, that has led to increased crime activity. Immigrantsfrom the former Soviet Union have contributed in a strong presence of Russian and AlbanianMafia involved in several kinds of criminal activity (women trafficking, drugs etc). 31Apart from world common opportunities to launder dirty money, Greece provides twoparticularly handy ways:By investments in the Stock market. In Greece the purchase of stocks and bonds is notcontrolled or checked, the profits from Stocks are not taxed.Via Casinos, which are a convenient vehicles for money laundering. Criminals canpurchase big quantities of chips that are later cashed without actually gambling 32 .It should be mentioned that foreign criminal organizations, and more specifically Russian andAlbanian Mafia use as medians in Greek "Ellinopontioi" (members of Greek omogenia of formerUSSR) and "Vorioipirotes" (members of Greek omogenia of Albania). They are entitled to Greekcitizenship and then move freely inside the EU.The money laundering offence covers 20 predicate offences, covering trafficking in drugs andweapons, robbery, blackmail, kidnapping, serious larceny, embezzlement or fraud, illegal trade in30Moneyval First Round Evaluation Report on Greece31 David Southwell, Dirty Cash, Organised Crime in the 21 st Century32Moneyval First Round Evaluation Report on GreeceMoney Laundering Best Practices,Lessons to be Learnt in the Balkan RegionWritten by Tamara BrneticPage 39 of 58