Italian Authorities Crack Down on Money Laundering: Criminal Responsibility for Corporate Officials Looms

Combating Money Laundering and Terrorist Financing

In an effort to combat money laundering and terrorist financing, Italian authorities have taken a tough stance against individuals and corporations involved in illegal activities. A recent amendment to the country’s criminal code has made it clear that corporate officials who facilitate or participate in money laundering will face severe consequences.

Corporate Responsibility for Money Laundering Offenses

Under the new law, companies can be held responsible for money laundering offenses committed by their managers or employees. This means that corporate officials who knowingly engage in illegal activities or fail to report suspicious transactions could face imprisonment and hefty fines.

Predicate Offenses

Italian authorities consider every intentional crime to be a predicate offense for money laundering, including:

• Misappropriation
• Fraud
• Corruption
• False accounting
• Criminal infringement of laws in other jurisdictions (provided that the same conduct would amount to a criminal offense under Italian law)

Additionally, tax crimes are now being treated as predicate offenses. This means that individuals or corporations found guilty of tax evasion could face money laundering charges and subsequent penalties.

Defenses

There are no codified defenses to charges of money laundering in Italy. However, defendants may argue that they lacked knowledge about the unlawful provenance of the relevant assets or goods. The court will consider evidence and testimony presented during trial to determine whether the defendant was aware of the illegal activities.

Punishments

The punishment for money laundering offenses varies depending on the circumstances of the case:

• Individuals: imprisonment ranging from four to 12 years, along with fines up to €25,000
• Corporate officials: fines, disqualification from office, and even criminal charges against the corporation

Limitation Periods

The ordinary statute of limitations for money laundering offenses is 12 years, although this period may be extended in certain circumstances. If no qualified activity of investigation is carried out within the limitation period, the crime is considered time-barred and extinguished.

Extraterritorial Reach

Italian criminal law provides that Italian courts have jurisdiction over all offenses committed within Italian territory, including money laundering offenses. However, extraterritorial jurisdiction is limited to specific circumstances:

• Presence of the suspect in Italy
• Request for proceedings by the Minister of Justice

In cases involving corporations whose main seat is in Italy, Italian law provides for limited extraterritorial jurisdiction over money laundering offenses committed abroad. This allows Italian authorities to investigate and prosecute corporate officials who engage in illegal activities outside of Italy’s borders.

Conclusion

The recent amendment to Italy’s criminal code sends a strong message that corporate officials will be held accountable for their actions. As the country continues to crack down on money laundering and terrorist financing, it is likely that we will see more cases involving corporate officials being prosecuted and punished for their involvement in illegal activities.