Italy’s Anti-Money Laundering Efforts: A Model for European Supervision
Strengthening Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Efforts
Rome, Italy - In recent years, Italy has made significant progress in strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts. The country’s banking sector, insurance industry, and auditing firms are under close supervision to prevent financial crimes.
Developing a Risk-Based Model for AML/CFT
According to Banca d’Italia, since 2015, Italy has developed a dedicated AML/CFT risk-based model in cooperation with the Italian Financial Intelligence Unit (UIF). This model provides residual ML/FT risk scores for banks and other financial institutions, enabling targeted supervision and enforcement.
Sophisticated Financial Intelligence Reports
The UIF is responsible for receiving suspicious transaction reports (STRs) from obliged entities. The agency has developed sophisticated financial intelligence reports using data mining, machine learning, and network analytical tools. The thorough research analysis has led to the generation of high-quality financial intelligence reports.
Strong Synergies with Tax Information
Italy’s anti-money laundering efforts have also been praised for their strong synergies with tax information. The country’s centralized Register of Bank Accounts and the “Anagrafe Tributaria” are effective mechanisms for investigating tax evasion, as well as anti-money laundering purposes.
Enforcing Targeted Financial Sanctions
The enforcement of targeted financial sanctions against Russia and Belarus has also been a key area of focus. The UIF and Guardia di Finanza have worked closely together to implement and enforce EU financial sanctions, using the same powers they have for preventing money laundering and terrorist financing.
Key Strengths of Italy’s AML System
- Ability to use the same set of powers for enforcing European financial sanctions as it does for preventing money laundering and terrorist financing
- Effective implementation of EU sanctions, resulting in the freezing of assets and economic resources of significant amounts
- Ability to reconstruct corporate chains that allowed the direct or indirect imputability of economic resources to entities designated by the EU
Effective Databases and Procedures
Italy has also developed a range of effective databases and procedures to support its anti-money laundering activities. These include:
- Register of financial accounts held in Italy at the Revenue Agency
- Public business register that hosts data on beneficial owners
Conclusion
Overall, Italy’s anti-money laundering efforts have been recognized as a model for European supervision, demonstrating the country’s commitment to preventing financial crimes and combating the financing of terrorism.