Council of State: Bank accounts can be seized without warning

The Greek state and insurance funds have the right to seize bank account deposits over debts without informing the owner, the Council of State ruled on Monday, in a decision that overturned earlier rulings and is irrevocable.

In its justification, the court said that "had the owner been notified of the measure, he would rush

to withdraw from the third party (the bank) the funds" or "would transfer to another party his assets, making it therefore impossible to satisfy the public's demands for satisfaction from these assets."

The court said the lack of notification does not violate constitutional rules. It added, "The debtor knows directly when his debt is past the payment deadline" and warned that "the introduction of obligatory measures against him to collect the debt is possible from the very next day of the deadline passed."

The case was initiated by the case of a CEO of a now defunct societe anonyme. The tax service drew a report for seizure over the company's outstanding debt of 565,393 euros to the Social Security Foundation (IKA) and then proceeded to withdraw the funds from the account in which his pension was paid. He found out of the seizure nine months after it occurred, when he went to withdraw funds.

In a decision in March, a section of the Council of State had decided the seizures were illegal if the state did not inform the account owner. In Monday's decision, however, it reversed its judgement.

source: ΑΜΝΑ