All above-mentioned legislation aims to cover all aspects of corruption in political and economic activities and covers both bribery of foreign officials and bribery of domestic public officials.
Law 4022/2011, as amended, introduced the anti-corruption Prosecutor, who is responsible for prosecuting corruption offences and co-ordinating relevant investigations.
How is bribery defined under current legal framework? Are both forms of bribery (active and passive) punishable?
The basic definition of bribery (passive and active) is given in relevant articles of the Greek Criminal Code. These provisions apply to domestic and foreign public officials (by specific provision of article 263A of the GCC) and are in accordance with the International Conventions
Greece is a party to, when there is reference to the domestic legal framework.
Articles 235 (passive bribery) and 236 (active bribery) of the Greek Criminal code provide that the punishable act is an act of requesting or receiving, directly or indirectly through third persons in favour of oneself or others, benefits of any nature or accepting a promise of such benefits in order to act or omit to act in the future (or an act or omission to act in the past), with regard to public duties or contrary to these duties. The individual requesting or receiving a gift, promise etc. must be a public official (see below question no 4). The perpetrator of active bribery (art. 236 of the Greek Criminal Code) may be any individual. The wording of the text is broad enough to cover most types of questionable transactions with public officials.
The provisions on passive bribery (article 235 of the Greek Criminal Code) are not applicable with regard to the OECD Convention, which provides for acts of active bribery.
Article 237 of the Greek Criminal Code provides specifically for the act of bribing a judge or arbitrator. Wording of said legal provision is similar, whereby the punishable act may be requesting or receiving gifts or benefits in order to conduct or decide on a case in favour of or against someone.
Private commercial bribery is prohibited by article 237B of the Greek Criminal Code. Private commercial bribery is the acceptance or receipt directly or indirectly of any benefit by employees in the private sector during the exercise of a commercial activity in breach of their duties and/or the giving or offering of benefits directly or indirectly to employees in the private sector for the purposes of acting or omitting to act in breach of their duties.
Article 237A (trading in influence) describes as punishable the act of requesting or receiving, directly or indirectly through third persons in favour of oneself or others, of benefits of any nature or accepting a promise of such benefits as an exchange for exerting improper influence over officials described in articles 159, 235 and 236 of the Greek Criminal Code.
Article 159 (bribery of political officials) describes as punishable the act of requesting or receiving, directly or indirectly through third persons in favour of oneself or others, of benefits of any nature or accepting a promise of such benefits in order to act or omit to act in the future (or an act or omission to act in the past), with regards to public duties or contrary to these duties. This provision is applicable to the prime minister, members of the cabinet, deputy members of the cabinet, mayors, e.tc.
What type of payments could fall under the scope of anti-corruption legislation? (facilitating payments, gifts, travel and entertainment, intermediaries, payments from/to third parties)
All payments and expenses must be in accordance to one’s economic activity and duly registered in the records of a company or person. In case a company or person fails to register such payments there may be perceived as fictitious transactions. This would raise issues not only from a corruption evaluation point of view but could be also be reviewed in relation to money laundering regulations and tax criminal offences provisions.
All kinds of payments or expenses that cannot be justified under the scope of a certain financial activity or market rules can be reviewed as suspicious. Some types of payments are totally prohibited (e.g. facilitating payments) whilst other types of transactions might not raise issues (e.g., gifts of minimal value).
Due to the broad phrasing of the relevant articles of the Greek Criminal Code (“benefits of any nature or accepting a promise of such benefits”) each transaction/payment should be examined individually in order to determine whether it falls into the scope of anti-corruption legislation. Payments of intermediaries or third parties are more likely to be deemed suspicious or unjustified.
What is the definition of a public official? Are there any differences in defining foreign public officials and domestic public officials?
A public official, according to article 13(a) of the GCC, is a person who performs duties or provides services (even temporarily) on behalf of state, municipal or other state-controlled legal entities. This definition is supplemented by article 263A of the Greek Criminal Code, which has broadened the meaning of public officials to include:
- those serving or having office in state-controlled legal entities or even state-controlled commercial companies providing energy, telecommunication and other services of public interest;
- employees of banks with a seat in the country or individuals who work for legal entities acting as private companies but have been established by the state or a state-owned company; or
- people working with private entities if these entities have been awarded state funding or subsidies.
Furthermore, article 263A (paragraph 1-d) provides that public officials are also individuals that hold office permanently or temporarily under any capacity or status in: bodies or organisations of the EU, including the Commission, the European Court of Justice and the European Court of Auditors.
Moreover, article 263A (paragraph 2) states that articles 235 and 236 of the Greek Criminal Code (passive and active bribery) are applicable to:
- officers or other employees of any international or transnational organisation to which Greece participates as well as any individual with power to act on behalf of such organisation;
- members of parliamentary assemblies of international or transnational organisations of which Greece is a member;
- those who exercise judicial, or arbitration powers with international courts to which Greece participates;
- any person in public office or service for foreign countries, including judges, jurors and arbitrators; and
- members of parliaments or assemblies of local governments of other countries.
What Authority or Agency has jurisdiction in enforcing foreign bribery laws and regulations? Are the same Authorities responsible for enforcing laws on domestic bribery?
The Prosecutor’s Office is the authority initiating criminal proceedings in all cases. In recent years a special prosecutorial authority has been established for acts of bribery and corruption: the anti-corruption, anti-bribery prosecutor, who is a prosecutor with the Court of Appeal of Athens and is responsible for coordinating all investigations dealing with bribery and corruption offences (Law 4022/2011). The Prosecutor is supported by special investigating agencies (such as the Financial and Economic Crime Unit and the Financial Police). The Prosecutor for combating Corruption has extensive powers, may request any information from any authority and has access to privileged information (bank accounts, tax records etc.).
If there are indications of money laundering, the Hellenic Financial Intelligence Unit gathers evidence for detected suspicious transactions against individuals or companies. The Hellenic FIU refers all evidence to the Prosecutor if they are of the opinion that a criminal case should open and may supply information upon request by the Prosecutor for combating corruption.
Does criminal liability for acts of corruption lie with individuals? Can corporations or legal entities be held criminally liable for acts of corruption?
Criminal liability refers primarily to the individual. This rule has seen some exceptions over the past decade, however, as Greece has made necessary adjustments to its legislation to comply with the country’s obligations stipulated by all International and European conventions in relation to corruption acts. Liability of legal entities is not criminal in a strict sense but there are provisions for sanctions in the form of fines, administrative penalties or other
measures. All these sanctions are provided for in article 46 of Law 4557/2018. Sanctions are mainly in the form of administrative fines and/or temporary or permanent cease of activities, prohibition of certain business activities, ban from public procurements etc.
Is private commercial bribery also punishable?
Private commercial bribery is punishable according to article 237B of the GCC. This legal provision is applicable to commercial and business activities without any involvement of public officials. Commercial bribery consists of benefits or promises to deliver benefits, or advantages to individuals working with companies in the private sector for violating the rules and obligations of their work.
What other rules, regulations, provisions may be applicable to cases of corruption?
Depending on the type of transaction that may constitute a bribery, other legal provisions may apply, especially, those on money laundering (Law 4557/2018) and tax criminal offences (Law 4172/2013). In such cases, more than one procedure can be initiated against an individual or a legal entity. There is also room for separate sanctions against a legal entity in the form of a fine (administrative or additional tax), temporary cease of activity etc.
The basic elements for application of above provisions (money laundering, tax-offences) would be a questionable transaction connected to the act of bribery. This money transaction could be perceived also as an act of money laundering of the proceeds of crime, as well as a fictitious transaction – from a tax regulation perspective – which would lead the Tax Authority to challenge the integrity and order of a legal entity’s registration records.
Is there a provision for leniency measures in cases of corruption? Can the disclosure of violations offer immunity or lesser penalties?
Leniency is not applied under Greek Law as a general rule. In order to facilitate application of anti-corruption legislation, article 263B of the Greek Criminal Code provides for a series of leniency measures in favour of perpetrators of both passive and active bribery. Application of said provision requests from individuals participating in any way to an active bribery to report to the authorities the bribed official and disclose substantial information in relation to the official’s criminal acts. If the above criteria are met (reporting to the authorities and disclosure of substantial information on the official’s criminal conduct), these individuals are eligible either to suspension of criminal proceedings against him by a decision of the Indicting Chamber or to receive a lesser sentence ranging from one to three years, which is not serviceable, instead of incarceration of five to 10 years.
These provisions are relevantly new and there is no benchmark yet as to the interpretation of substantial information disclosure or what may be the correct time to come forward and report a criminal act to the Authorities.
Are companies under specific obligation to disclose violations of corruption laws and/or related acts constituting tax irregularities or other misconduct?
There is no general rule set out by anti-corruption legislation expressly demanding disclosure of violations by a company/legal entity for violations of anti-corruption legislation by same. There are, however, specific requirements for disclosure of irregularities related to other aspects of a company’s activities, such as the obligation to report suspicious transactions in the context of money-laundering regulations or tax criminal law. It is in this respect that a company’s compliance and internal audit control officers are under obligation to expose and report irregularities related to financial records or obscure transactions. Following an amendment of relevant regulations, auditors and accounting officers have increased responsibility for the accuracy of entries in the financial records.
Prosecution of corruption acts. Who is initiating the proceedings? Can a foreign legal entity be prosecuted for bribery?
Prosecution is always initiated and conducted by the Prosecutor’s Office. The Prosecutor gives the guidelines to enforcement agencies to conduct investigations, searches, interrogations, interviews etc. and then evaluates the findings of all investigation acts and processes the case further. Depending on the nature of the case and the stipulated procedure, the Prosecutor may forward a case to an Indicting Chamber – proposing with written submissions for or against indictment – or refer an individual directly to trial. Depending on the seriousness or complication of the case, more than one Prosecutor may get involved in prosecution proceedings jointly under instructions by the anti-corruption Prosecutor. The Prosecutor may initiate prosecution following a written complaint, or information from other sources (e.g., regulatory authorities, enforcement agencies etc.).
Criminal prosecution aims at individuals. It is in this respect that foreign companies cannot be prosecuted for the acts of foreign bribery. The Prosecutor may, however, initiate proceedings against individuals working with foreign companies provided either that they are related directly to Greek public officials (bribery of a public official by a foreign company) or indirectly through third parties or intermediaries acting in Greece who have facilitated bribes to foreign or domestic public officials.
What is the penal framework for an individual or a company violating the domestic bribery rules?
The basic penalty for individuals in cases of a misdemeanour act is imprisonment for at least one year1 and a fine of € 5,000 - 50,000. When the act is contrary to the duties of the official bribery becomes a felony and is punishable with incarceration of up to 10 years and a fine of € 15,000 - 150,000. If the act of passive bribery is committed in breach of duty and habitually or the gain or benefit is of high value, it is punishable with incarceration up to 15 years and pecuniary sanctions ranging from € 15,000 - 150,000.
In cases of bribery acts resulting to financial loss of the Greek State exceeding € 150,000, Law 1608/1950 is applicable, whereby sentences of incarceration of up to 20 years (with a minimum sentence of 10 years) are provided for. If aggravated circumstances apply, within the scope of Law 1608/50 (e.g. particularly large amount of financial loss or acts committed over a long period of time), a maximum of a life sentence may be imposed.
Bribery in the private sector is a misdemeanour, punishable with imprisonment of at least 1 year.
Said penalties are cited at their nominal value and do not include benefits from rules on the conversion of prison terms to fines, rules of suspension of penalties, early conditional release, application of mitigating circumstances.
Can bribery cases be resolved without a trial? (provisions for settlement agreements, prosecutorial discretion and other such means)
Settlement agreements and similar means of resolving criminal cases are not generally provided for under Greek Law. Prosecutorial discretion is also not a practice when prosecuting crimes. There are specific provisions for settlement or plea agreements for property related crimes, mainly misappropriation of property, but not for the acts of bribery. Corruption cases are referred to trial, if substantial evidence is available, following prosecution, filing of charges, conducting of investigation and indictment. Tax-related offences linked to bribery cases may be resolved through settlement agreements (in the form of financial settlement with the Competent Authority).
Does Greek law provide for civil enforcement of foreign bribery laws?
Greece has ratified the Civil Law Convention on Corruption in 2001 by Law 2957/2001. Provisions therein are part of Greek Civil Law, mainly acknowledging rights to compensation, to seek annulment of agreements that were the result of bribery act(s) as well as specific provisions for the protection of civil servants against disciplinary punishment for reporting corruption practices to higher officials.