Financial Crime World

Italy’s Anti-Money Laundering Laws Face Scrutiny from Global Watchdog

Mixed Evaluation of Italy’s Anti-Money Laundering Efforts

A recent assessment by the Financial Action Task Force (FATF) has yielded a mixed bag of results for Italy’s anti-money laundering (AML) laws and regulations. The evaluation highlights both areas where Italy meets international standards and those where it falls short.

Areas of Compliance

  • Risk-Based Approach: Italy is largely compliant in its risk-based approach to assessing and mitigating money laundering risks.
  • National Cooperation and Coordination: The country’s national cooperation and coordination efforts are also meeting international standards.
  • Defining and Prosecuting Money Laundering Offenses: Italy meets international standards when it comes to defining and prosecuting money laundering offenses, as well as confiscation and provisional measures to seize illicit funds.

Areas for Improvement

  • Targeted Financial Sanctions: Italy is partially compliant with regards to targeted financial sanctions related to terrorism and terrorist financing.
  • Non-Profit Organizations: The country’s laws governing non-profit organizations need improvement.
  • Financial Institution Secrecy: Laws governing financial institution secrecy and customer due diligence also require improvement.
  • Record Keeping Practices: Italy’s record keeping practices receive a partial compliance grade.
  • Regulation and Supervision of Financial Institutions: While largely compliant, the country’s efforts to regulate and supervise financial institutions need strengthening.

Urgent Reforms Needed

The FATF report highlights several areas where urgent reforms are necessary:

  • Beneficial Ownership Transparency: Italy must improve its transparency regarding beneficial ownership of legal persons and arrangements.
  • Regulation and Supervision of DNFBPs: The country should strengthen its regulation and supervision of designated non-financial businesses and professions (DNFBPs).
  • Financial Intelligence Units: Italy is urged to enhance its financial intelligence units.

Italian Government Commitment

The Italian government has committed to implementing the necessary reforms to bring its AML laws in line with international standards. The country has outlined a plan to strengthen its anti-money laundering efforts, ensuring that its laws and regulations meet the highest global standards.