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By Christina Poursanidou, Lawyer /  Legal and Compliance Officer  During 2019, the total number of fines imposed globally for violation of money laundering regulations was estimated to €370 million. Strangely enough, such fines did not worry bank CEOs and boards, which instead of improving their anti-money laundering (AML) procedures, keep on operating with insufficient due diligence standards, improper management of AML measures and   poor transaction monitoring. The result?   €600 million in AML monetary penalties within the first six months of 2020. Within the context of the European Union, during 2020 National Financial Supervisors have imposed heavy fines to a number of credit institutions, such as Skandinaviska Enskilda Banken AB , known as SEB   (€125 million), Deutsche Bank (€13.5 million), Commerzbank (€41 million) and Swedbank (€320 Million). These money laundering cases involving high-profile EU financial institutions have highlighted that the E...

In Chamber judgment in the case of Efstratiou and Others v. Greece (application no. 53221/14) the European Court of Human Rights held, unanimously, that there had been no violation of Article 6 (right to a fair trial / right of access to a court) of the European Convention on Human Rights. The applicants in this case considered that the refusal by the court of appeal and the Court of Cassation to take account of evidence which they considered as decisive for the outcome of the case had been excessively formalistic. Those courts had considered that the documents in question had not been presented to the court of appeal in accordance with the requirements of Article 240 of the Greek Code of Civil Procedure. The Court held, in particular, that the statement given by a witness for the applicants at the hearing before the court of appeal, had fairly accurately reflected the substance of the document (a sworn statement), which the court of appeal had dismissed on the grounds that it ha...

60 years ago, on 14 November 1960, the Court delivered its first judgment, Lawless v. Ireland, with René Cassin as its President. The judgment concerned preliminary objections and procedural questions regarding the application, on which a judgment on the merits was delivered the following year. Since its inauguration the Court has delivered 23,291 judgments on just over 51,650 applications. The case was filed by Gerard Richard Lawless, who had been an IRA member, although he claimed to have left the IRA. He was arrested on 11 July 1957, as he was about to travel to Great Britain from Ireland, and subsequently detained under the special powers of indefinite detention without trial under the Offences against the State (Amendment) Act 1940. The case was filed by Lawless for violation, by the Irish Government, of Articles 5, 6 and 7 of the European Convention of Human Rights, providing rights to liberty and security, fair trial and the principle of 'no pu...

Three persons have been sentenced to prison by the court of first instance (tribunal) in Genoa, Italy, as a judicial follow-up to an operation run by the European Anti-Fraud Office (OLAF) and the Italian Guardia di Finanza. The operation’s code-name was ‘Paper Castle’. Ended roughly two years ago, it had uncovered a fraud scheme that stretched over several EU Member States and involved a set of companies, some of which only existed on paper. €1.4 million were defrauded from EU funds intended to develop hovercraft prototypes – that is, emergency nautical vehicles able to reach remote areas in case of environmental accidents. Part of the money was used to pay the mortgage on an actual castle. Last month, two people were sentenced to several years of imprisonment for the fraud scheme. The accountant who had helped create a system of fictitious companies that went from Italy to London in the UK and to Delaware (U.S.) will also have to face jail, the court ruled. With the paper castle d...

In a new Opinion on “ The role ofassociations of judges in supporting judicial independence ”, the Council of Europe’s Consultative Council of European Judges (CCJE) calls upon member States to provide a framework within which the right of judges to associate can be effectively exercised, and to refrain from any interventions which might infringe the independence of the associations of judges. The CCJE notes that a great variety of judges’ associations exist in Europe, in relation to their aims, the size of their membership, and the qualifications for membership. However, a common feature for them all is that they are self-governing non-profit organisations whose most important and overarching objectives are to establish and defend the independence of judges, to safeguard their status and, to ensure adequate working conditions for judges. In this way, the associations help foster and improve the rule of law. The CCJE also notes that associations of judges should be closely i...

The European Convention on Human Rights, signed in Rome on 4 November 1950, was the first instrument to crystallise and give binding effect to the rights set out in the Universal Declaration of Human Rights.  It lays down absolute rights which can never be breached by the States, such as the right to life or the prohibition of torture, and it protects certain rights and freedoms which can only be restricted by law when necessary in a democratic society, for example the right to liberty and security or the right to respect for private and family life. A number of rights have been added to the initial text with the adoption of additional protocols, concerning in particular the abolition of the death penalty, the protection of property, the right to free elections or freedom of movement. (ECHR) The updated text of the Convention is available here

By Christina Poursanidou, Lawyer The rapid and massive spread of the Covid-19 around the world had a dramatic effect on both global health and economy. At a time when governments were focusing on designing the most effective measures to prevent the spread of the Coronavirus and all other sectors have been suspended, financial crime and especially money laundering was "blooming". Despite the fact that both the European Commission and Financial Crimes Enforcement Network (FinCEN) had warned competent authorities, credit institutions and other obliged entities of the increased volume of money laundering during similar crises in the past, the latter did not act accordingly. Ongoing criminal investigations in banks were suspended, many countries such as the United Kingdom have extended the deadlines for submitting Annual Company Accounts, while other have relaxed supervision, reporting deadlines and due diligence requirements. These decisions had as a result the lack of transpar...