Financial Crime World

Italy Tackles Financial Crime with AI-Driven Data Analysis Tools

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As Italy assumes the rotating chairmanship of the Group of Seven (G7) major democracies, Prime Minister Giorgia Meloni has highlighted Artificial Intelligence (AI) as a key issue for 2024. In line with this focus, a draft law aimed at tackling financial crimes using AI tools has been published.

Tougher Penalties for Financial Crimes

The bill introduces tougher penalties for market rigging and money laundering activities facilitated by AI. Specifically:

  • The use of AI in money laundering is deemed an aggravating element
  • The same technology used for market manipulation will be subject to heavier fines

The 25-article draft bill outlines general principles for the development, adoption, and application of AI in Italy, with a focus on mitigating the impact on fundamental rights and addressing related economic and social risks.

Applications Beyond Financial Crime Prevention

In addition to financial crime prevention, the bill addresses:

  • Copyright violations through AI
    • Proposes jail terms of up to three years for those who employ such tools to replace human beings, potentially targeting harmful deepfakes
  • Healthcare sector: plans for using AI in healthcare
  • Judiciary: potential impact on job conditions

Plans for Investment and Promotion

Italy’s government has also announced plans to establish an investment fund to promote AI projects, with:

  • An initial endowment of 1 billion euros ($1.1 billion)
  • Potential private sector funding of up to 2 billion euros
  • The move is seen as a key step in positioning Italy at the forefront of AI development and application in Europe.

Timeline and Expectations

The Italian cabinet is expected to greenlight the bill by the end of April, with further revisions and final approval pending in parliament. This comes as the European Union moves closer to adopting its first rules on AI, which will require specific transparency obligations and compliance with EU copyright laws.

In summary, Italy’s push to regulate AI aims to tackle financial crimes, promote innovation, and position itself at the forefront of AI development in Europe.