Financial Crime World

Money Laundering Investigation Heats Up in Italy: A Look into the Country’s Anti-Money Laundering System

Italy’s financial markets and economy are under close scrutiny due to an ongoing money laundering investigation. This investigation sheds light on Italy’s sophisticated Anti-Money Laundering (AML) system, designed to prevent proceeds of criminal activity from entering legitimate areas.

Italy’s legislative framework against money laundering and terrorism financing is in line with international standards and European directives. The foundation of Italy’s AML system consists of:

  • Legislative Decree 231/2007
  • Legislative Decree 109/2007
  • Recent amendments made through Legislative Decree 125/2019 and Decree Law 124/2019

Combatting Self-Money Laundering

Unlike before, Italy now criminalizes self-money laundering, where criminals reinvest illicit profits into their own assets, under the Italian Penal Code (Article 648-ter).

Risk Assessment and Identification

Risk assessment is pivotal in Italy’s AML system. The Financial Security Committee conducts national-level threat assessments every three years, collaborating with the UIF and other authorities. Operators adopt measures proportionate to identified risks, including:

  • Customer Due Diligence
  • Reporting Suspicious Transactions

Preventive Measures and Central Register

Italy has instituted measures to prevent money laundering:

  • Centralized system for registering beneficial ownership in the Company Register
  • Restrictions on the use of cash and bearer securities

Reporting Obligations for Various Entities

A wide range of entities, including:

  • Banking, financial, and insurance intermediaries
  • Professionals
  • Non-financial operators
  • Providers of virtual currency and digital portfolio services
  • Gaming services providers
  • Cash-for-gold operators

are now subject to reporting obligations.

The Role of the Italian Financial Intelligence Unit (UIF)

The UIF plays a critical role in collecting information on potential cases of money laundering and terrorist financing. It analyzes the data and shares findings with competent authorities, receiving:

  • Aggregated data reports
  • Communications of transactions at risk

International Collaboration

The UIF collaborates closely with:

  • The Italian Finance Police
  • The Anti-Mafia Investigation Department
  • Other Financial Intelligence Units

to investigate suspected cases and share information.

Penalties for Non-Compliance

Non-compliance with AML regulations in Italy results in both criminal and administrative penalties, increasing the responsibilities of:

  • Legal entities
  • Their management and control bodies.

Conclusion

Italy’s money laundering investigation highlights the country’s commitment to keeping its financial system secure and stable while adhering to international frameworks to prevent criminal proceeds from entering its economy.