Financial Crime World

Italy’s Financial Inclusion and Anti-Money Laundering Efforts Receive Mixed Assessment from Global Watchdog

The Financial Action Task Force (FATF) has released its latest assessment of Italy’s efforts to combat money laundering and terrorist financing. While the country has made progress in implementing several key recommendations, it still faces challenges in certain areas.

Compliance with Recommendations

Italy has been found largely compliant with requirements related to:

  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Transparency and beneficial ownership of legal persons (R.24)

However, Italy has been found partially compliant in several areas, including:

  • Assessing risk and applying a risk-based approach (R.1)
  • Money laundering offence (R.3)
  • Confiscation and provisional measures (R.4)
  • Customer due diligence (R.10)
  • Record keeping (R.11)
  • Reporting of suspicious transactions (R.20)

Non-Compliance

Italy has been identified as non-compliant in several areas, including:

  • Financial institution secrecy laws (R.9)
  • Reliance on third parties (R.17)

The country is also partially compliant with requirements related to:

  • Correspondent banking (R.13)
  • Money or value transfer services (R.14)
  • Higher-risk countries (R.19)

Challenges and Recommendations

The FATF report highlights that Italy’s lack of progress in implementing these recommendations poses a risk to the international financial system and undermines efforts to combat money laundering and terrorist financing.

Despite these challenges, Italy has made significant strides in recent years to improve its anti-money laundering and combating the financing of terrorism regime. The country has implemented several key laws and regulations aimed at strengthening its financial system and improving cooperation with international partners.

However, the FATF report emphasizes that more needs to be done to address these weaknesses and ensure that Italy’s financial system is fully compliant with global standards. The country must continue to work towards implementing the remaining recommendations and strengthen its efforts to combat money laundering and terrorist financing.