Italy’s Strengthened AML/CFT Framework: Key Initiatives and Efforts

Rome, Italy - A Bid to Enhance Anti-Money Laundering and Combating Terrorism Financing

In an effort to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, Italy’s financial regulatory authorities have been working diligently to develop effective risk-based models and procedures.

Banca d’Italia’s AML/CFT Risk-Based Model

Since 2015, Banca d’Italia has been informing its supervisory priorities over the banking sector using a dedicated AML/CFT risk-based model developed in cooperation with the UIF. The model provides residual ML/FT risks to financial institutions and schedules on-site inspections based on these risks.

IVASS’s AML/CFT Efforts

IVASS, Italy’s insurance supervisory authority, has also been working to strengthen its AML/CFT framework. The authority has developed a risk-based approach to supervise the insurance sector and has implemented measures to prevent the misuse of insurance products for money laundering and terrorist financing purposes.

Consob’s AML/CFT Efforts

Consob, Italy’s securities commission, has also been taking steps to strengthen its AML/CFT framework. The authority has developed a risk-based approach to supervise the securities sector and has implemented measures to prevent the misuse of securities products for money laundering and terrorist financing purposes.

UIF’s Financial Intelligence Unit

The UIF’s financial intelligence unit is responsible for collecting and analyzing suspicious transaction reports (STRs) from obliged entities and other sources. The unit uses advanced techniques such as data mining, machine learning, and network analytical tools to analyze STRs and generate sophisticated financial intelligence reports.

Effective Enforcement of Targeted Financial Sanctions

Italy has been effective in enforcing targeted financial sanctions against Russia and Belarus. The UIF and the Guardia di Finanza have worked together to implement and enforce the sanction regime, and the UIF has facilitated compliance in the financial sector by notifying designations, receiving communications of freezing and related assets, and assisting in interpretations.

Registers and Procedures

Italian AML authorities can rely on a range of effective databases, including:

• The Register of financial accounts held in Italy at the Revenue Agency
• The registers of beneficial owners

These registers are used for financial analyses, investigative purposes, and to apply preventive measures.

Conclusion

Overall, Italy’s strengthened AML/CFT framework has been successful in preventing money laundering and terrorist financing, and the country continues to work towards improving its framework to meet international standards.