Session 1: Co-operation between across Customs and other enforcement agencies to counter illicit trade

Illicit Tobacco trade and inter-agency cooperation in

Greece: recent initiatives

Dr. Eirini Stamouli General Secretariat Against Corruption

Ministry of Justice, Transparency & Human Rights Hellenic Republic

World Custom Organization- OECD

Brussels, 7-8/11/2016

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Organized Crime in Greece • Increase of OC since 90s (human trafficking,

immigrant smuggling, racketeering) • economic crisis • cigarette smuggling, loan sharking and money

laundering • The geographical position of Greece as a

passage between East and West • The economic crisis as a primary reinforcing

parameter (enabler) respectively - (SOCTA 2013) 2

Organized Crime in Greece • Strong links to international criminal organizations. • Polycriminal groups. • use of internet in order to facilitate their criminal

activity. • These is a continued upward trend in crimes with

serious economic consequences on the State, businesses, and individuals, e.g. cigarette smuggling.

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The profits of Organized Crime in Greece - estimates Source: ‘’Final report of project OCP – Organised Crime Portfolio’’ (2015)

• 3.6 billion euros per year, corresponding to 1.6 percent in GDP (in 2010).

• Cigarette smuggling brings 455 million euros per year (2013).

• Drug trafficking: 54 million euros per year in heroin sales, 35 million euros in ecstasy sales, 28 million euros from cannabis and 16 million euros from cocaine.

• The biggest profits for criminal organizations come from counterfeit products estimated at 1.5 billion euros (2010).

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Greece & international drug trafficking routes/heroin, cannabis, cocaine

Source: Coordinative Body for Drug Law Enforcement - 2014 Annual Report

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• Smuggling of tobacco products

• economic crisis/increase of the demand for illegal cigarettes and tobacco

• 2011: increase of 37% compared to the respective numbers of seizures for year 2010

• The total amount of lost revenues and taxes was estimated at over EUR 125 million.

Συντονιστική Υπηρεσία Καταπολέμησης της Απάτης - AFCOS 6

• 2008 -2014: The state missed out total taxes of 2, 535 billion euros (KPMG, Project SUN, 2014)

• In 2014: contraband and counterfeit tobacco products 20,6 % of domestic cigarette transactions.

• In 2015: 19.8 % of the total consumption

Συντονιστική Υπηρεσία Καταπολέμησης της Απάτης - AFCOS 7

Smuggling of tobacco products

Key factors for the increase of the illicit tobacco products trade: • The substantial increase in taxation • The economic downturn due to the ongoing crisis • The social tolerance • The overall merging of operational capabilities of

regional Balkan criminal groups

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Smuggling of tobacco products

• 2013: the higher percentage of total tax (excise and VAT) /corresponding increases in cigarette prices.

• 2013: Greece displays the largest increase in the EU (+ 26%) in tobacco smuggling.

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General Secretariat of Public Revenue Special Strategic Plans

• 2015 Annual Report of the General Secretariat of Public Revenue (GGDE), of the Hellenic Ministry of Finance

• special strategic plans • comprehensive strategic approach at national

level

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Numbers of cigarette smuggling cases (2013-2014 / Greece – total/Source: Hellenic Police, 2014 Annual Report for Serious &

Organized Crime in Greece)

1581

2245

0

500

1000

1500

2000

2500

2013 2014

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Seizures by competent Authority (2014 / Greece – total total/Source: Hellenic Police, 2014 Annual Report for Serious

& Organized Crime in Greece)

Hellenic Sea Guard 28,38%

Police, 7.77%

Economi Crime Unti ;

6,49%

Customs, 56.85%

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Smuggling of cigarettes - seizures

• 2015: 630.801.892 cigarettes were seized. Total amount of evaded duties and taxes 114.544.017 euros.

• 2014: 428.802.919 cigarettes were seized. Total amount of evaded duties and taxes 75.741.023 euros.

47,1% increase in cigarettes seized in 2015, compared to 2014

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Συντονιστική Υπηρεσία Καταπολέμησης της Απάτης - AFCOS

Seizures of tobacco products in Ε.U. (source : OLAF)

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2015: 1η rank 2014: 3η rank 2013: 2η rank 2012: 4η rank 2011: 1η rank 2010: 3η rank 2009: 6η rank

General Secretariat Against Corruption • The fight against corruption, is one of the main

priorities of the Greek Government. • The General Secretariat Against Corruption

(GSAC) was established according to article 6 of Law 4320/2015 (Gov. Gaz. A' 29/19-03-2015).

• The General Secretariat Against Corruption- GSAC has also been designated as the national anti-fraud coordination service-AFCOS, as foreseen in par. 1b of article 7 of law 4320/2015. 15

General Secretariat Against Corruption To resolve conflicts to remove overlapping responsibilities to enhance the coordination of the competent

domestic Services and Agencies to promote the effectiveness of their actions to ensure cooperation with OLAF

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General Secretariat Against Corruption

Inter-Institutional cooperation concerns the following audit and law enforcement authorities: • Financial & Economic Crime Unit-S.D.O.E. • Hellenic Police Services, including Economic Police

Directorate & Internal Affairs Directorate • Customs • Coast Guard • State Auditors • Internal Audit Services & Units • Administrative Control Authorities

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Cigarettes seizures in Greece – cooperation between GSAC and OLAF

SEIZURES OF CIGARETTES Custom service: October 2015 until April 2016 seized 11 containers with illicit cigarettes. Total number of seized cigarettes : 125.570.000. Total amount of evaded duties and taxies was €23.119.841,18. All these containers and cigarettes reached Greece from outside the EU. Cooperation: Custom Service with the Financial and Economic Crime Unit (SDOE) of the Hellenic Ministry of Finance, seizures of Coordination : General Secretariat against – AFCOS.

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General Secretariat against Corruption - AFCOS

INFORMATION FLOW

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OLAF

AFCOS

Customs, Units for Economic Crime (SDOE, Financial Police), Hellenic Coast Guard

OLAF Press Release – 05/02/2016 ‘’The Aegean Sea was the target of two of OLAF's biggest operations this season. Thanks to the close cooperation with the Greek General Secretariat against corruption (AFCOS Greece), Greek and Cypriot customs, 33 million cigarettes, were seized at the end of January. An additional seizure of almost 21 million cigarettes had already taken place at the Port of Piraeus, bringing the total number of seized cigarettes in Greece in the course of these 2 recent investigations to over 55 million.’’

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Cigarettes seizure – Customs in cooperation with SDOE – 2016

Source: General Secretariat Against Corruption

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Cigarettes seizure – Customs in cooperation with SDOE – 2016

Source: General Secretariat Against Corruption

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Cigarettes seizure – Customs – 2015 Source: General Secretariat Against Corruption

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Cigarettes seizure – Customs – 2015 Source: General Secretariat Against Corruption

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Steps to be taken • Foster collective action • Increase penalties and fines, to deter

trafficking and illicit trade • Multi-stakeholder approach • Promote integrity and anti-corruption

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General Secretariat Against Corruption

THANK YOU VERY MUCH FOR YOUR ATTENTION!!!

Contact details: Fragkoudi 11 & Al. Pantou Kallithea 17671, Athens, Greece Tel.: +30 210 9098701 Fax: +30 210 9098741 E-mail: gsecretariat@gsac.gov.gr http://www.gsac.gov.gr

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