Under Law 4557/2018, customer due diligence consists of a set of organized measures aimed at:

• Identifying and verifying the customer’s identity,
• Collecting information about the purpose and nature of the business relationship or transaction,
• Assessing the risk of money laundering or terrorist financing,
• Continuously monitoring transactional behavior.

Due diligence legislation applies to the following obligated entities:

• Credit and financial institutions,
• Accountants and tax consultants,
• Lawyers (in specific transactions),
• Notaries,
• Real estate agents,
• Businesses with high transaction intensity.

Depending on the customer’s risk profile, the law defines three levels of control:

1. Simplified Due Diligence: Applied in cases of very low risk.
2. Standard Due Diligence: The norm, involving customer identification with official documents and understanding the nature of the business relationship.
3. Enhanced Due Diligence: Required when there are high-risk factors, such as transactions with countries outside the EU or cooperation with Politically Exposed Persons (PEPs).

Failure to follow the prescribed procedures can have significant consequences for your business. The penalties imposed by the Anti-Money Laundering Authority are extremely strict and include:

• Administrative Sanctions: Fines that can reach hundreds of thousands of euros for legal entities.
• Criminal Liability: Risk of imprisonment for management executives.
• Exclusion from the Banking System: Banks terminate cooperation with businesses unable to prove compliance.
• Public Shaming: Publication of the violation and the company’s name on the supervisory authority’s website.

Compliance with Law 4557/2018 requires specialized knowledge and ongoing monitoring of legislative changes. Our specialized staff can help you turn this complex process into a functional and automated system:

• Risk Assessment: We identify vulnerabilities in your business.
• Drafting AML Policies: We create internal procedure manuals tailored to your data.
• Ultimate Beneficial Owner (UBO) Verification: We assist in the correct declaration and verification of information in the Central Registry.
• Staff Training: We teach your team how to assess your customers and recognize risks in a transaction.

Prevention is always less costly than the cure. A well-structured due diligence process not only protects your business from the law but also adds prestige to your international and domestic partnerships.
Are you sure your customer files are complete according to current requirements?
Book an informational meeting with us today to assess your business’s readiness and ensure your protection against regulatory risks