Financial Crime World

Credit Card Fraud Prevention Measures Enforced in Italy

Italy has recently implemented new regulations aimed at preventing credit card fraud and money laundering offenses. Two Italian Legislative Decrees, no. 184 and no. 195, came into effect on December 14 and 15, 2021, amending the Italian Criminal Code and implementing European Union directives.

New Offenses Introduced

The new measures introduce a range of offenses related to non-cash means of payment, including:

  • Credit cards
  • Debit cards
  • E-wallets
  • Mobile devices
  • Virtual currencies

Companies must assess whether they need to update their organizational models adopted pursuant to Decree 231, which regulates corporate liability.

Decree 184 expands the list of offenses that may trigger liability for companies under Decree 231, including:

  • Undue use and falsification of credit cards or payment cards
  • Possession and distribution of equipment aimed at committing offenses regarding non-cash means of payment
  • Computer fraud involving a transfer of money or virtual currency

The decree also introduces corporate liability for other offenses against public trust and property when having as object non-cash means of payment.

Decree 195: Amendments to the Italian Criminal Code

Decree 195 introduces amendments to the Italian Criminal Code related to money laundering offenses. It extends criminal liability for money laundering offenses when:

  • The property acquired, concealed or re-used derives from minor criminal offenses or non-intentional offenses
  • This potentially expands cases of corporate liability under Decree 231

What Companies Should Do

Companies should update their policies and procedures to prevent the commission of new offenses that may trigger liability under Decree 231. They should:

  • Ensure robust anti-fraud controls for activities involving non-cash means of payment
  • Assess internal policies and procedures to prevent money laundering offenses
  • Review customer due diligence and assessment of suspicious transactions procedures

Conclusion

The new measures aim to combat credit card fraud and money laundering in Italy, ensuring a safer financial environment for businesses and individuals alike. By implementing these new regulations, companies can mitigate the risk of liability and maintain a secure financial footing.