Financial Crime World

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Italy’s Financial System Strengthens Anti-Money Laundering and Combating Terrorist Financing Efforts

Rome, Italy - In recent years, Italy has made significant strides to strengthen its anti-money laundering (AML) and combating terrorist financing (CFT) efforts. A new report by the Italian Supervisory Authority for Insurance (IVASS), Consob, and the Financial Intelligence Unit (UIF) highlights the country’s progress in implementing robust controls to prevent financial crimes.

IVASS Risk Index

According to IVASS, a basic risk index is created using standardized data from insurance companies. The index takes into account:

  • Average premiums
  • Paid services
  • Control structures put in place by companies

This assessment helps identify potential vulnerabilities and enables the authority to monitor and regulate the industry effectively.

Consob’s AML/CFT Supervision

Consob performs annual supervisory activities on auditors and auditing firms of Public Interest Entities (PIEs) to assess their AML/CFT risks. The authority uses a risk-based model that considers:

  • Customer numbers
  • Firm size
  • Non-auditing services revenue

Financial Analysis based on STRs

The UIF receives suspicious transaction reports (STRs) from obliged entities and conducts thorough research analysis using data mining, machine learning, and network analytical tools to generate sophisticated financial intelligence reports.

AML and Tax Compliance

Italy’s AML and tax information frameworks show strong synergies, with excellent reviews highlighting:

  • An effective and robust framework for beneficial ownership
  • The centralized Register of Bank Accounts and the “Anagrafe Tributaria” are used for both AML and tax evasion investigations

Enforcement of Targeted Financial Sanctions against Russia and Belarus

Italy has taken a constructive approach to enforcing EU financial sanctions against Russia and Belarus, with:

  • The UIF and Guardia di Finanza agencies working together to implement and enforce the sanction regime
  • The UIF facilitates awareness and compliance among operators, notifies designations, receives communications of freezing, and assists in interpretations

Registers and Procedures

Italian AML authorities can rely on effective databases, including:

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

These registers are used for:

  • Financial analyses
  • Investigative purposes
  • Preventive measures

The report highlights Italy’s commitment to strengthening its anti-money laundering and combating terrorist financing efforts, with a focus on data analysis, risk assessment, and effective enforcement mechanisms.