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Italy’s Anti-Money Laundering and Know-Your-Customer Regulations: A Guide to Compliance
As part of its efforts to combat money laundering and terrorist financing, the Italian government has implemented strict regulations for businesses operating in the country. The regulations require companies to verify their customers’ identities and conduct due diligence on their transactions.
Document Verification
According to the regulations, Shufti Pro shall also verify the documents submitted by end-users to confirm their identity. To perform these checks, we utilize our specialized Document Verification service, which examines security features such as:
- Holograms
- Tapered/crumpled edges
- Doctored elements
- Form inconsistencies
- Document expiration
- MRZ
- Reflected colors
- Microprinting
Information Extraction
For legal persons or partnerships, Shufti Pro shall extract information from the commercial register or a comparable official register through its KYB (Know Your Business) process.
Required Documents for Verification
In Italy, the following documents are considered proof of identity:
- Identity Card
- Driving License
- Passport
- Other valid photo ID
For address verification, the following documents are accepted:
- A current utility bill showing the end-user’s address and name (issued no more than three months ago)
- Bank statement issued no more than three months ago showing the end-user’s address and name
- Document issued by a government department showing the end-user’s address and name
Timing of Verification
Identity verification is not limited to one-time, one-instance process. It is required in multiple instances as per regulations. The application and choice of when to deploy identity verification procedures depend on your requirements and conveyance to Shufti Pro.
Politically Exposed Persons and Enhanced Due Diligence Measures
Under Italy’s Enhanced Due Diligence requirements, businesses are required to determine if their customers are Politically Exposed Persons (PEPs), hold a public office, or exhibit a higher risk profile. To fulfill this obligation, Shufti Pro provides AML Screening services that screen an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
Reliance on External Services
Italy’s regulations allow businesses to seek the services of a third party to apply measures of due diligence. However, regulations also require data collection from the third party without undue delay. In this scenario, Shufti Pro will be the external third-party service provider to you.
Record Retention
According to Italy’s Act, businesses are required to retain data for at least ten years as part of their AML and KYC obligations for due diligence. If information is processed, collected, and managed by a relevant third party, it is liable to collect all necessary information from the third party without undue delay.
Shufti Pro is committed to helping businesses comply with Italy’s anti-money laundering and know-your-customer regulations. Our specialized services can assist you in verifying identities, extracting information, and conducting due diligence on your transactions. Contact us today to learn more about our solutions.