Financial Crime World

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Financial Crimes Regulatory Bodies in Italy Face Evolutionary Challenges

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Italy has a long history of combating financial crimes, dating back to the 1930s when the concept of money laundering first emerged. The country’s regulatory bodies have undergone significant transformations over the years, adapting to new threats and international standards.

Origins of Anti-Money Laundering (AML) in Italy

The Italian AML function originated in the United States in the 1930s and was later introduced in Italy. The term “money laundering” gained popularity after the Al Capone affair in the 1930s, which revealed a sophisticated system of cleaning, concealing, and remitting criminal proceeds.

Recent Developments

In recent years, Italy has implemented several AML directives, including:

  • EU’s Third Anti-Money Laundering Directive (3AMLD)
  • EU’s Fifth Anti-Money Launderning Directive (5AMLD)
  • New obliged parties, such as digital payment services, to ensure a comprehensive approach to combating financial crimes

Amendments to the Criminal Code

Italy’s criminal code has been amended several times to address money laundering. Article 648 bis of the Criminal Code punishes anyone who performs acts or deeds aimed at replacing money or valuables from criminal offenses with money or other valuables with:

  • Imprisonment from four to ten years
  • A fine ranging from one million to twenty million euros

Regulatory Framework

The regulatory framework in Italy is governed by several key pieces of legislation, including:

  • Legislative Decree 231 of 2007, which implemented the EU’s Third Anti-Money Laundering Directive
  • The decree established new bodies to control financial flows, such as:
    • FIU (Financial Intelligence Unit)
    • NSPV (Nucleo Speciale di Polizia Valutaria)

Recent Developments: EU’s Sixth Anti-Money Laundering Directive (6AMLD)

The directive aims to increase the severity of penalties for financial crimes. Italian authorities have also introduced new reporting requirements, including:

  • Ordinary reporting
  • Simplified reporting
  • Enhanced reporting

These requirements ensure that suspicious transactions are promptly reported to the competent authorities.

“Know Your Customer” Principle

The “Know Your Customer” principle is a fundamental aspect of Italy’s AML regime, requiring obliged parties to identify their customers and provide active cooperation with investigative authorities. The country has also established new bodies to control financial flows, such as the FIU and the NSPV.

Conclusion

In conclusion, Italy’s regulatory bodies have undergone significant transformations over the years to adapt to new threats and international standards. The country’s criminal code has been amended several times to address money laundering, and new legislation has introduced stricter penalties for financial crimes. The implementation of EU directives and the establishment of new bodies to control financial flows are key components of Italy’s AML regime.