Italy’s Financial Regulators Take Aim at Money Laundering and Terrorist Financing
Rome - Italy’s financial authorities have been busy tackling the threats of money laundering and terrorist financing, according to a recent assessment.
Regulatory Bodies Implement Robust Measures
IVASS, Consob, and other regulatory bodies have implemented robust measures to identify and mitigate risks. These measures aim to prevent financial systems from being exploited by criminals and terrorists.
IVASS’ Risk-Based Model
IVASS, the Italian insurance supervision authority, has developed a risk-based model to assess the vulnerability of insurance companies to money laundering and terrorist financing. The model takes into account factors such as:
- Premium size
- Paid services
- Internal controls
A basic risk index is calculated based on the ratio between average premiums and average premiums for the system.
Consob’s Approach
Consob, the Italian securities regulator, has implemented a similar approach for auditing firms that operate with Public Interest Entities. The supervisor assesses the inherent risk of each firm based on factors such as:
- Number of high-risk customers
- Firm size
- Revenue from non-auditing services
UIF’s Role in Identifying Suspicious Transactions
The UIF, Italy’s Financial Intelligence Unit, receives suspicious transaction reports (STRs) and uses advanced analytical techniques to identify potential money laundering and terrorist financing activities. The unit has developed sophisticated financial intelligence reports through:
- Data mining
- Machine learning
- Network analysis tools
Effective Coordination in Enforcing Targeted Sanctions
Italy has also demonstrated effective coordination in enforcing targeted financial sanctions against Russia and Belarus. The UIF and Guardia di Finanza have worked together to implement and enforce the EU’s financial sanctions regime, using their powers for preventing money laundering and terrorist financing.
Establishing Effective Databases
The Italian authorities have also established a range of 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
Conclusion
Overall, Italy’s financial regulators have demonstrated a strong commitment to preventing money laundering and terrorist financing, with robust controls and procedures in place to mitigate risks.