Italy’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Strengthened
Rome, Italy - In an effort to enhance its anti-money laundering (AML) and counter-terrorist financing (CFT) efforts, the Italian authorities have been working on developing risk-based models to assess the AML/CFT risks of supervised entities.
Risk-Based Models for Supervised Entities
According to a recent report, Banca d’Italia has developed an AML/CFT risk-based model 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. Additionally, the bank is working on improving its financial intelligence reports through data mining, machine learning, and network analytical tools.
IVASS and Consob’s Efforts
IVASS, Italy’s insurance supervision authority, has also been actively involved in AML/CFT efforts. It has developed a risk-based approach to supervise the insurance sector, focusing on high-risk sectors and products. The authority is working on improving its financial intelligence reports through data mining and machine learning techniques.
Consob, Italy’s securities watchdog, has taken a similar approach to IVASS, developing a risk-based approach to supervise the securities sector. It has also been actively involved in AML/CFT efforts, focusing on high-risk sectors and products.
The Italian Financial Intelligence Unit (UIF)
The UIF has been playing a crucial role in AML/CFT efforts, receiving suspicious transaction reports (STRs) from obliged entities and analyzing them through data mining, machine learning, and network analytical tools. The authority is working on improving its financial intelligence reports and developing sophisticated financial intelligence reports through research analysis.
Targeted Financial Sanctions Against Russia and Belarus
In addition to these efforts, Italy has been actively enforcing targeted financial sanctions against Russia and Belarus. The UIF and the Guardia di Finanza have been working together to implement and enforce the European Union’s financial sanctions regime. The authorities are committed to developing intelligence aimed at tracing targeted assets and identifying cases of sanctions evasion.
Key Strengths of Italy’s AML/CFT System
One of the key strengths of Italy’s AML/CFT system is its ability to use the same set of powers for enforcing European financial sanctions as it does for preventing money laundering and terrorist financing. This approach has enabled timely and effective implementation of European sanctions, resulting in the freezing of assets and economic resources of significant amounts.
Access to Effective Databases
Italy’s AML/CFT authorities also have access to a range of effective databases, including:
- The Register of Financial Accounts held in Italy at the Revenue Agency
- The registers of beneficial owners
These databases are used for financial analyses by the UIF as well as for investigative purposes by the Guardia di Finanza in the course of criminal proceedings and for the application of preventive measures.
Conclusion
Overall, Italy’s AML/CFT efforts have been strengthening its position as a key player in the fight against money laundering and terrorist financing. The authorities’ risk-based approach to supervision, effective use of financial intelligence reports, and commitment to enforcing targeted financial sanctions are all contributing to this success.