Money laundering and Greek banking payment and settlement systems

Author:Spyridon Repousis
Position:University of Nicosia, Patras, Greece
Pages:58-69
SUMMARY

Purpose - The purpose of this paper is to identify, categorize and describe the Greek banking payment and settlement systems and the way to SEPA. Also, the purpose is to describe authorities that supervise money laundering through Greek payment systems and identify major categories of suspicious transaction reports and amounts of criminal assets per each category. Design/methodology/approach - The Bank of Greece, central bank of Greece, has explicit tasks in the field... (see full summary)

 
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Money laundering and Greek
banking payment and settlement
systems
Spyridon Repousis
University of Nicosia, Patras, Greece
Abstract
Purpose – The purpose of this paper is to identify, categorize and describe the Greek banking payment
and settlement systems and the way to SEPA. Also, the purpose is to describe authorities that supervise
money laundering through Greek payment systems and identify major categories of suspicious
transaction reports and amounts of criminal assets per each category.
Design/methodology/approach – The Bank of Greece, central bank of Greece, has explicit tasks in
the eld of payment and settlement systems. In Greece, there are three payment and settlement systems:
large-value payment system (TARGET2), retail payment systems and securities settlement systems.
Findings – TARGET2 is based on a technically centralized platform (single shared platform –
SSP), which is provided by the central banks of Germany, France and Italy, and it replaces the
decentralized structure of the original TARGET system. Migration on TARGET2 took place in
Greece on May 19, 2008. Ongoing cooperation between the European System of Central Banks
and the banking community through extensive consultations facilitated the smooth migration to
TARGET2. Retail payment systems consist of DIAS credit transfers, direct debits, check, ATM
transactions and card payments. During the year 2013, DIAS cleared 144.13 million payment
transactions with a total value of €184.1 billion. Most of the transactions were credit transfers
SEPA compliant. Securities settlement systems operate on the delivery versus payment principle,
whereby sales of securities and respective payments are affected simultaneously, as well as the
principle of dual notice. Migration of Greek data systems toward SEPA through a regulatory
framework will promote the use of common European standards and business practices for a fully
automated and efcient processing of payment instruments. Bank of Greece and Greek Anti-Money
Laundering and Counter Terrorist Financing Authority are responsible authorities to supervise
illegal activity through bank payment systems. Data show that Greek bank payment systems were
used during 2012 for tax evasion and for offences that result in imprisonment for over six months.
Practical implications Above ndings are useful for information technology management,
legislative and compliance authorities, investors and person that operate transactions with Greek
banking payment and settlement systems.
Originality/value – To the best of the author’s knowledge, it is the rst study about Greek banking
payment systems.
Keywords Money laundering, Data payment and settlement systems
Paper type Research paper
1. Introduction
The Bank of Greece, central bank of Greece, has explicit tasks in the eld of payment
systems according to its Statute, which has been harmonized to the Statute of the
European System of Central Banks and European Central Bank. It may establish
operating rules and oversee payment systems and settlement systems for
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
JMLC
19,1
58
Journalof Money Laundering
Control
Vol.19 No. 1, 2016
pp.58-69
©Emerald Group Publishing Limited
1368-5201
DOI 10.1108/JMLC-12-2014-0049

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