Money Laundering Threat to Italian Economy Considered Low

Rome, Italy - Despite being a major player in the global economy, Italy is considered to have a low risk of money laundering, according to financial intermediaries. The country’s strict anti-money laundering safeguards and economic situation are seen as deterrents against illegal capital entering the market.

The Criminal Economy in Italy

According to SOS Impresa, the criminal economy in Italy accounts for approximately 8.7% of GDP. This is primarily driven by organized crime groups, with corruption, extortion, tax evasion, and drug trafficking being some of the major contributors. However, the Bank of Italy estimates that only a small percentage of this illegal activity is linked to violent crimes.

Estimates of Illegal Activity

A recent study by Transcrime found that the turnover of illegal activities in 2010 was equivalent to 1.7% of GDP, or between €17.7 and €33.7 billion. Another academic study estimated that money laundering in Italy between 1981 and 2001 accounted for around 12% of GDP.

Financial Intermediaries’ Perspective

Despite these estimates, the majority of financial intermediaries consider the risk of money laundering in Italy to be low. The country’s economic situation and tax burden are seen as deterrents against illegal capital entering the market.

Growing Threat from Foreign Criminal Organizations

The National Analysis of Risks of Money Laundering and Terrorist Financing 2018, published by the Ministry of Economy and Finance, highlights the growing threat of foreign criminal organizations, particularly from Romania and Eastern European countries. These organizations are believed to be reinvesting their illegal proceeds back into their own countries.

Conclusion

While Italy’s economy is not immune to money laundering and other forms of financial crime, the country’s strict anti-money laundering safeguards and economic situation are seen as deterrents against illegal capital entering the market. Overall, the threat of money laundering in Italy is considered low.