Italy Tightens Screws on Financial Inclusion and Anti-Money Laundering
Rome Takes Action Against Money Laundering and Terrorism Financing
In a bid to combat money laundering and terrorism financing, Italy has stepped up its efforts to ensure financial inclusion and anti-money laundering measures. The country is working closely with international organizations such as the Financial Action Task Force (FATF) to harmonize rules and regulations.
Global Standards for Combating Money Laundering
The FATF, an intergovernmental organization that sets global standards for combating money laundering and terrorist financing, has issued a set of 40 Recommendations that countries must implement. Italy, along with other European Union member states, is committed to implementing these recommendations.
EU Initiatives to Enhance Anti-Money Laundering Measures
In recent years, the EU has taken several initiatives to increase the effectiveness of anti-money laundering measures. The fourth anti-money laundering directive has been updated, and the European Banking Authority (EBA) has been strengthened to ensure more robust and uniform supervisory practices.
Italy’s Own Legislation Against Money Laundering and Terrorism Financing
Italy has also implemented its own legislation to combat money laundering and terrorism financing. Legislative Decree 231/2007 sets out the rules for anti-money laundering and tasking the Bank of Italy with regulation and supervision.
The Role of the Bank of Italy
The Bank of Italy has issued secondary provisions on:
- Organization, procedures, and internal controls
- Customer due diligence
- Record keeping and sharing of documents, data, and information
- Sanctions and administrative sanction procedure
The bank supervises all banks, investment firms, intermediaries for managed assets, financial intermediaries, some trust companies, payment institutions, and electronic money institutions operating in Italy.
Bank Supervision
The Bank of Italy’s supervision is designed to:
- Verify compliance with anti-money laundering obligations
- Assess the adequacy of organizational and procedural safeguards
- Identify signs of weakness in anti-money laundering set-ups and prompt corrective measures
- Conduct off-site checks and inspections
- Adopt specific measures in the event of criticalities involving operators, including convening administrative bodies and prohibiting new transactions
Sanctions and Administrative Procedures
Sanction procedures may be undertaken against intermediaries and/or executives, which can result in financial and non-financial sanctions.
The Importance of Italy’s Efforts
Italy’s efforts to combat money laundering and terrorism financing are crucial not only for the country’s economy but also for global security. By strengthening its anti-money laundering measures, Italy is contributing to the international fight against these serious threats.