Financial Crime World

Title: Italian Public Prosecutors Crack Down on Money Laundering: Jurisdiction, Defenses, and Penalties

Role of Italian Public Prosecutors in Money Laundering Cases

Italian public prosecutors are taking a leading role in the fight against money laundering. They are the primary bodies responsible for investigating and prosecuting money laundering crimes in Italy. This is where they receive notice of potential offenses. Public prosecutors are aided by:

  1. Police forces, including:
    • State police
    • Carabinieri
    • Financial police

Jurisdiction

In Italy, money laundering is a criminal offense at the state level. The competence of public prosecutors is determined by the place where the offense was committed.

Special units of the financial police and, to some extent, the state police (Anti-Mafia Investigation Directorate and Bureau of Anti-Mafia Investigation) have unique powers and skills to combat money laundering and terrorism financing.

Prosecution of Individuals and Corporations

Both natural and legal persons can be prosecuted for money laundering offenses.

Corporations

Corporations cannot be held responsible unless certain criminal offenses have been committed by their managers or employees. In such cases, the corporation’s responsibility is administrative, but the proceedings are dealt with by a criminal judge.

Defenses for Corporations

Effective compliance programs can help corporations avoid liability if the offense was committed by an employee.

Penalties for Corporations

Money laundering penalties for corporations include fines, disqualifications, and confiscation.

  • Disqualifications can damage a company’s reputation, leading to:
    • Loss of government concessions
    • Debarment
    • Exclusion from government financing
    • Prohibition from conducting business activities

Money Laundering Offenses

Money laundering involves the substitution, transfer, or obfuscation of money, goods, or other valuable assets with knowledge and intent that the funds originated from a criminal offense.

Elements of Money Laundering

It is essential to prove:

  1. Knowledge of the unlawful provenance
  2. Intent to launder the funds or obstruct identification

Bank Officers and Financial Institutions

Bank officers and financial institutions can be held liable for money laundering if they have knowledge of the illicit origins of the transactions and contribute to carrying them out.

Defenses Against Money Laundering Charges

Absence of Illicit Provenance

The absence of knowledge that the funds originated from a criminal offense can be a potential defense.

Lack of Intent

The absence of intent to launder or obstruct identification can also potentially clear a person of charges.

No Formal Defenses

However, no codified or common law defenses specifically exist for money laundering offenses.