Financial Crime World

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Italy Takes Tough Stance Against Terrorist Financing, Intensifies Anti-Money Laundering Efforts

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In an effort to combat the growing threat of terrorist financing and money laundering, Italy has strengthened its anti-money laundering measures, aligning with international standards set by the Financial Action Task Force (FATF) and European Union regulations.

International Cooperation

The FATF, comprising 37 member countries, including Italy, has issued a set of 40 Recommendations aimed at preventing money laundering and terrorism financing. The EU, too, has taken several initiatives to harmonize rules and strengthen supervisory practices in member states.

Italian Legislative Framework

Italy’s legislative framework for combating money laundering and terrorist financing is contained in Legislative Decree 231/2007, which tasks the Bank of Italy with regulating and supervising intermediaries in these areas. The bank has issued a series of secondary provisions outlining:

  • Organizational requirements
  • Customer due diligence
  • Record-keeping
  • Sanctions for non-compliance

Supervision of Money Laundering

The Bank of Italy’s supervision of money laundering focuses on all banks, investment firms, financial intermediaries, payment institutions, and electronic money institutions operating in Italy. The agency conducts:

  • Off-site checks
  • Inspections to verify the adequacy of anti-money laundering measures and organizational safeguards

Measures for Non-Compliance

In cases where criticalities are identified, specific measures are adopted, including:

  • Convening administrative bodies
  • Prohibiting new transactions
  • Imposing sanctions on intermediaries and executives
    • Financial sanctions: fines
    • Non-financial sanctions: temporary bans on activities or “cease and desist” orders

Boost to Anti-Money Laundering Efforts

Italy’s anti-money laundering efforts have been boosted by the establishment of a new European authority, the Anti Money-Laundering Authority (AMLA), which will directly supervise high-risk intermediaries. AMLA aims to:

  • Promote uniform standards for supervision
  • Common methodologies for assessing money laundering and terrorism financing risks

Goal: Protecting Economy and Citizens

With its strengthened measures, Italy aims to prevent terrorist financing and money laundering, thereby protecting its economy and citizens from the destabilizing effects of these phenomena.