Financial Crime World

Money Laundering Definition in Italy: A Serious Financial Crime

Italy is one of the countries that takes measures to combat money laundering and terrorist financing, considering their significant economic and political consequences. The country has defined money laundering as a serious financial crime that paves the way for other crimes such as fraud, drug trafficking, human trafficking, and terrorist financing.

Italian Measures Against Money Laundering

Italy has implemented various measures to detect and prevent financial crimes since 1991, when it decreed Law No. 143 and 197. The country has worked closely with the Financial Action Task Force (FATF) and the European Union (EU) to enact more effective anti-money laundering (AML) laws and regulations.

The History of AML in Italy

Italy’s first major measure against money laundering came in 1991, when it decreed Law No. 143 and 197. Later years saw the country work closely with the FATF and EU to implement more effective AML laws and regulations. In 2007, Italy enacted Legislative Decree No. 231/2007 to implement the Third EU Anti-Money Laundering Directive into Italian law.

AML Requirements and Penalties in Italy

Organizations operating in Italy must meet certain AML requirements when performing their services. These include:

  • Committing to the fight against financial crimes by taking necessary measures in line with Italian national AML regulations, FATF recommendations, and EU directives.
  • Financial institutions that fail to meet AML obligations face various regulatory penalties.

Money Laundering Penalties in Italy

The money laundering penalties in Italy include:

  • Imprisonment for four to twelve years
  • Fines of up to €25,000

AML Program Advantages

To avoid these repercussions, companies can include certain advantages in an AML program. These include:

  • Customer onboarding processes that involve:
    • Checking the accuracy of customer information
    • Determining the customer’s risk level
    • Scanning the customer against sanction and PEP lists

Customer Onboarding Process in Italy

The customer onboarding process involves asking for documents and information from customers to open accounts. The company’s AML compliance officer checks the accuracy of customer information through the Know Your Customer (KYC) process. Companies must also determine the customer’s risk level by scanning against sanction and PEP lists during the Customer Due Diligence (CDD) process.

How Sanction Scanner Can Help

Sanction Scanner offers financial crime prevention solutions to organizations and institutions worldwide. Financial institutions can protect themselves against financial crime and ensure AML compliance with Sanction Scanner, which collects sanction and PEP list data from over 200 countries and updates it at 15-minute intervals. The company’s AI-powered AML solutions reduce the workload of financial institutions in AML compliance processes. Italian financial institutions can contact Sanction Scanner or request a demo to ensure AML compliance.