Financial Crime World

Italy’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts

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Rome, Italy - Since 2015, Banca d’Italia has been prioritizing its supervisory efforts in the banking sector using a dedicated AML/CFT risk-based model. This approach has been extended to other supervised entities in cooperation with the Italian Financial Intelligence Unit (UIF). The model provides residual ML/FT risk scores for banks based on automated inherent risk scores and vulnerability assessments by supervisors.

Effective Supervision

In line with international standards, Banca d’Italia’s model uses indicators capturing potential exposure to ML/FT and exploiting data flows transmitted to the bank and UIF. This approach has enabled effective supervision of financial institutions and ensured compliance with AML/CFT regulations.

Other Key Developments

Consob’s Role

  • Consob, Italy’s national commission for companies and the stock exchange, has been actively involved in implementing AML/CFT measures.
  • The agency has scheduled priorities based on residual risk scores and conducted on-site inspections.

UIF’s Advanced Techniques

  • UIF receives suspicious transaction reports (STRs) from obliged entities and uses advanced techniques such as data mining and machine learning to analyze them.
  • This has led to the generation of sophisticated financial intelligence reports, enabling effective identification of money laundering and terrorist financing activities.

Enforcing Targeted Financial Sanctions

  • Italy has been proactive in enforcing targeted financial sanctions against Russia and Belarus.
  • The UIF, alongside Banca d’Italia, IVASS, and Consob, has called on operators to comply with sanctions and urged them to notify restrictive measures applied before the end of the maximum period allowed.

Strengths of the Italian System

Strong Synergies

  • Italy’s AML/CFT system has shown strong synergies between AML and tax information, particularly in the area of beneficial ownership.

Effective Tools

  • The centralized Register of Bank Accounts and the “Anagrafe Tributaria” have proven effective tools for investigating and preventing money laundering and terrorist financing activities.

Effective Enforcement of European Financial Sanctions

  • Italy’s approach to enforcing European financial sanctions has been highly effective, enabling the timely and effective implementation of sanctions, including the freezing of assets and economic resources of significant amounts.

Conclusion

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Italy’s AML/CFT efforts have been marked by a strong focus on supervision, enforcement, and cooperation between authorities. The country’s AML/CFT system has shown resilience in addressing money laundering and terrorist financing threats, and its approach to enforcing European financial sanctions has been particularly effective. These developments demonstrate Italy’s commitment to combating these serious criminal activities and protecting the integrity of its financial system.