Here is the converted article in Markdown format:
Italy Tightens Grip on Financial Crime with Strict Definition of Money Laundering
============================================
Crimes such as money laundering and terrorist financing have severe economic and political repercussions, allowing criminal organizations to grow and commit more serious offenses. Italy has taken significant measures to combat these crimes, defining money laundering as a serious financial offense that paves the way for other illicit activities.
Italy’s Anti-Money Laundering Measures
Italy has implemented various anti-money laundering (AML) regulations and laws, largely based on the Financial Action Task Force (FATF) Recommendations and European Union (EU) legislation. The country’s first major AML measure came in 1991 with the decree of Law No. 143 and 197, which aimed to limit the use of cash and bearer bonds in transactions and prevent the misuse of the financial system.
Timeline of Italy’s AML Efforts
1991: Limiting Cash and Bearer Bonds
The country implemented Law No. 143 and 197 to restrict the use of cash and bearer bonds in transactions and prevent financial system abuse.
2007: Implementing the Third EU Anti-Money Laundering Directive
Italy enacted Legislative Decree No. 231/2007, implementing the Third EU Anti-Money Laundering Directive into Italian law.
2017: Implementing the Fourth EU Anti-Money Laundering Directive
The country enacted Legislative Decree No. 90 to implement the Fourth EU Anti-Money Laundering Directive.
FATF Review Finds Italy Substantially Compliant with AML Standards
In 2019, the FATF conducted its most recent review of Italy’s efforts to adhere to AML standards. The evaluation found that Italy was largely compliant with 18 of the FATF’s 40 Recommendations and considered substantially compliant with 20 recommendations.
AML Requirements and Penalties
Organizations operating in Italy must meet specific AML requirements when providing their services, committing to the fight against financial crimes by taking necessary measures in line with Italian national AML regulations, FATF recommendations, and EU directives. Financial institutions that fail to comply with AML obligations face regulatory penalties, which can damage trust and loyalty among customers.
Money Laundering Penalties in Italy
The money laundering penalties in Italy include:
- Imprisonment for four to twelve years
- Fines of up to €25,000
Customer Onboarding Process
The customer onboarding process involves the account opening process for companies. The company asks for documents and information from the customer and checks the accuracy of this information through the Know Your Customer (KYC) process. Companies must also determine the customer’s risk level by scanning them against sanction and Politically Exposed Persons (PEPs) lists during the Customer Due Diligence (CDD) process.
How Sanction Scanner Helps
Sanction Scanner offers financial crime prevention solutions to organizations worldwide, providing a sanction and PEP list data collection service that updates at 15-minute intervals. Financial institutions can use Sanction Scanner’s AML solutions, developed with artificial intelligence, to reduce their workload in compliance processes and ensure AML compliance. Organizations in Italy can contact Sanction Scanner or request a demo to learn more about how our solutions can help them prevent financial crime.