Financial Crime World

Italy’s Battle Against Money Laundering: Follow the Money Trail

Italian authorities have been at the forefront of the global fight against money laundering for several decades. This article explores the evolution of Italy’s anti-money laundering (AML) framework, from the Al Capone era to the present, influenced by internal and external challenges and the EU’s push against economic crimes.

Origins of Money Laundering in Italy

  • Money laundering was initially an unknown concept to investigators.
  • Traceable origins to the US in the 1930s (Al Capone affair).
  • Relatives of commercial activities: laundries, pizzerias, used for cleaning, transferring, and disguising illicit proceeds.
  • First criminal offense codified in the late 1930s.

Italy’s Own Battle Against Money Laundering

  • Criminal organizations like Mafia Ndrangheta, Camorra, Cosa Nostra, Sacra Corona Unita, dominated the peninsula.
  • Regulatory oversight and EU’s impetus to combat economic crimes.
  • Judges Giovanni Falcone and Paolo Borsellino introduced the “Follow the Money” methodology.

Key Legislative Acts Against Money Laundering

  1. Decree-Law No. 143 of 3 May 1991: A starting point for Italian AML legislation.
  2. Second Anti-Money Laundering Directive (2 AMLD) in 2001: Widened scope of regulatory oversight for obliged parties.
  3. Legislative Decree 231 of 21 November 2007: Implemented the Third Anti-Money Laundering Directive (3 AMLD).
  4. Fifth Anti-Money Laundering Directive (5 AMLD) in 2020: Introduced new obliged parties.

Institutional Framework to Control Financial Flows

  1. Financial Intelligence Unit (FIU) of Italy: Controls financial flows and enforces regulations.
  2. Nucleo Speciale di Polizia Valutaria (NSPV) of the Guardia di Finanza: Instrumental in controlling financial flows and enforcing regulations against money laundering.

Upcoming Changes to the Italian AML Landscape

  1. Sixth Anti-Money Laundering Directive (6 AMLD): Transposition will bring more changes to the Italian AML framework.

Conclusion

Money laundering is a multifaceted crime requiring significant intent and hindering the paper trail, posing a risk to the financial system. Efforts to detect and prosecute money laundering are essential for maintaining a stable and secure economy.

  • Detection and prosecution of money laundering are essential for maintaining a stable and secure economy.
  • AML legislation continually evolves to combat this complex crime.