Financial Crime World

Italy Steps Up Fight Against Money Laundering and Terrorism Financing

Italy has taken significant steps to combat money laundering and terrorism financing, aligning with international efforts to prevent these harmful activities.

International Efforts

The Financial Action Task Force (FATF) plays a crucial role in setting standards for fighting money laundering and terrorism financing. As one of the 37 member countries, Italy works alongside two regional organizations representing major global financial centers. The FATF has developed a set of 40 Recommendations aimed at preventing money laundering and terrorism financing.

European Initiatives

In Europe, several initiatives have been taken to increase the effectiveness of actions against money laundering and terrorism financing. The European Union’s anti-money laundering directive has been updated regularly since its adoption in 2015, and is currently undergoing a review process that will transfer the main directives into a single European regulation.

National Measures

Italy has strengthened its supervisory practices by entrusting the European Banking Authority (EBA) with coordination and monitoring powers over national authorities. A new European authority, the Anti-Money Laundering Authority (AMLA), is expected to be set up in the near future to directly supervise high-risk intermediaries.

Italian Anti-Money Laundering Rules

Italy’s anti-money laundering rules are contained in Legislative Decree 231/2007, which tasks the Bank of Italy with regulating and supervising intermediaries for anti-money laundering purposes. The Bank has issued secondary provisions on:

  • Organization
  • Customer due diligence
  • Record keeping
  • Sanctions
  • Administrative procedures

Supervision by the Bank of Italy

The Bank of Italy’s supervision is directed at all banks, investment firms, intermediaries for managed assets, financial intermediaries, trust companies, payment institutions, and electronic money institutions operating in Italy. The purpose is to verify compliance with anti-money laundering obligations and the adequacy of organizational and procedural safeguards.

Measures in Case of Criticalities

In the event of criticalities involving operators, specific measures are adopted, including:

  • Convening administrative and supervisory bodies
  • Prohibiting new transactions
  • Imposing sanctions on intermediaries and/or executives

These can include financial and non-financial sanctions, such as a temporary ban on activities or a “cease and desist” order.

Conclusion

Italy’s efforts to combat money laundering and terrorism financing demonstrate its commitment to preventing these harmful activities and ensuring the stability of the financial system.