Financial Crime World

Italy Enforces Anti-Money Laundering Laws with UBO-Register Implementation

A Crucial Step in the Fight Against Money Laundering and Terrorist Financing

Rome, Italy - As of October 9th, 2023, Italy has brought into operation its Register of Beneficial Owners (UBO-Register), a vital measure to combat money laundering and terrorist financing.

What is the UBO-Register?

The UBO-Register is an extension of the Commercial Register, with two sections dedicated to collecting data on beneficial ownership:

  • Section 1: Concerns companies with legal personality, private legal persons, recognized associations, and committees.
  • Section 2: Focuses on trusts producing relevant legal effects and similar institutions.

Access to the UBO-Register

Access to the UBO-Register is restricted to authorized authorities, such as:

  • Ministry for Economy and Finance
  • Financial Intelligence Unit (FIU)
  • Guardia di Finanza
  • Anti-Mafia Directorate
  • Subjects required to carry out Know Your Customer (KYC) due diligence

Following a recent sentence by the EU Court of Justice, public access to the UBO-Register remains limited. The Ministerial Decrees of 16 March 2023, 12 April 2023, and 20 April 2023 have restricted access to data on beneficial ownership of companies and private legal entities.

Entities Required to Submit Declarations

Entities required to submit declarations include:

  • Companies with legal personality
  • Private legal persons
  • Recognized associations
  • Committees

These entities must provide detailed information on their beneficial owners within 60 days from October 9th, 2023.

Consequences of Non-Compliance

Failure to comply with these regulations will result in pecuniary administrative sanctions ranging from €103 to €1,032 (Article 21(1) of Legislative Decree 231/2007; Article 2630(1) of the Civil Code). Furthermore, intentional provision of false data or untrue information can lead to imprisonment from 6 months to 3 years and fines ranging from €10,000 to €30,000.

Conclusion

The implementation of the UBO-Register is a significant step in Italy’s efforts to combat money laundering and terrorist financing. Businesses operating within its borders would be well-advised to familiarize themselves with these new regulations to avoid potential penalties and reputational damage.