Financial Crime World

Italy Enacts Stricter AML Guidelines to Combat Money Laundering and Fraud

Strengthening Anti-Money Laundering Framework

In a bid to enhance its anti-money laundering (AML) framework, Italy has introduced new guidelines aimed at combating money laundering and fraud. The amendments, which came into effect on December 14 and 15, 2021, aim to improve the country’s ability to detect and prevent illegal activities.

Key Provisions

The revised framework introduces several key changes to Italy’s AML regime, including:

  • Expansion of Corporate Liability: Companies will now be held liable for any offense committed by their employees or agents, including those related to non-cash means of payment.
  • Increased Penalties: The amendments introduce increased penalties for money laundering offenses, including the acquisition or possession of property deriving from criminal activity when committed during professional activity.
  • New Offenses: A new set of offenses related to non-cash means of payment can trigger corporate liability under Decree 231. These include:
    • Undue use and falsification of credit cards or payment cards
    • Possession and distribution of equipment aimed at committing offenses regarding non-cash means of payment
  • Extended Criminal Liability: The revised framework extends criminal liability for money laundering offenses to include property acquired, concealed, or re-used derived from minor criminal offenses and non-intentional offenses.
  • Italian Jurisdiction: Italian jurisdiction has been extended to include offenses of acquisition of property derived from criminal activity and self-laundering when committed abroad by an Italian citizen.

Compliance Obligations

Companies operating in Italy are advised to:

  • Review their policies and procedures to ensure compliance with the revised AML guidelines
  • Implement robust anti-fraud controls to prevent liability under Decree 231
  • Assess internal policies and procedures to verify that they are appropriate to prevent money laundering offenses

European Commission’s Infringement Procedure

The European Commission has opened an infringement procedure against Italy for failure to implement the directives by December 3, 2020. This may lead to further scrutiny of the country’s AML framework in the coming months.

By understanding and complying with these new guidelines, companies operating in Italy can help prevent money laundering and fraud, while also ensuring compliance with the revised AML regime.