Banca d’Italia Sets New Priorities for Banking Sector Supervision
Rome, Italy - In a move aimed at strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts, Banca d’Italia has announced its new supervisory priorities for the banking sector.
Improved AML/CFT Risk-Based Model
The development follows the implementation of a dedicated AML/CFT risk-based model, which was developed in cooperation with the Italian Financial Intelligence Unit (UIF). The model uses automated inherent risk scores and vulnerability assessments by supervisors to provide residual ML/FT risk scores for supervised banks.
Assessing Inherent Bank Risk
According to sources, the model assesses the inherent risk of each bank using indicators such as:
- Customer due diligence
- Transaction monitoring
- Reporting suspicious transactions
- Size, complexity, and geographical location of the bank
“We are committed to ensuring that our banking sector is a key player in the fight against money laundering and terrorist financing,” said a senior official at Banca d’Italia. “Our new model will help us identify areas where banks may be vulnerable to these threats and take targeted action to mitigate those risks.”
Enhancing Financial Analysis Capabilities
In related news, Italian authorities have announced plans to enhance their financial analysis capabilities using suspicious transaction reports (STRs) and other intelligence.
“We are continually improving our ability to analyze STRs and other information to identify patterns and trends that may indicate money laundering or terrorist financing,” said a spokesperson for the UIF. “Our goal is to provide timely and effective support to our law enforcement partners in their efforts to disrupt these criminal activities.”
Pressure from the European Union
The move comes as Italy faces increased pressure from the European Union to improve its AML/CFT framework. In recent years, the country has been criticized for failing to effectively implement EU regulations aimed at preventing money laundering and terrorist financing.
Enhanced Enforcement of Targeted Financial Sanctions
In a separate development, Italian authorities have announced plans to enhance their enforcement of targeted financial sanctions against Russia and Belarus.
“We are committed to working with our international partners to ensure that those designated by the European Union as posing a threat to global security are held accountable,” said a senior official at the UIF. “Our efforts to enforce these sanctions are ongoing, and we will continue to work closely with our law enforcement partners to identify and disrupt any attempts to evade or circumvent these measures.”
Conclusion
The new supervisory priorities announced by Banca d’Italia demonstrate its commitment to strengthening AML/CFT efforts in the banking sector. The improved risk-based model and enhanced financial analysis capabilities are expected to improve the effectiveness of anti-money laundering and combating the financing of terrorism initiatives in Italy.