Italy’s Financial Sector Steps Up Anti-Money Laundering Efforts

Rome, Italy - In a bid to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, Italy’s financial sector has been working closely with various regulatory bodies to develop risk-based models for assessing AML/CFT risks.

Enhancing Risk-Based Models

According to Banca d’Italia, the country’s central bank, since 2015, it has been informing its supervisory priorities over the banking sector using a dedicated AML/CFT risk-based model. The model provides residual ML/FT risk scores for supervised banks based on automated inherent risk scores and other factors.

Improving Financial Intelligence Reports

The Italian financial sector has also been working to improve its AML/CFT measures through various initiatives, including the development of sophisticated financial intelligence reports. The country’s Financial Intelligence Unit (UIF) receives suspicious transaction reports (STRs) from obliged entities and collects direct or indirect information from a range of sources.

Effective Enforcement of Targeted Sanctions

Italian authorities have also been effective in enforcing targeted financial sanctions against Russia and Belarus. The UIF and the Guardia di Finanza are responsible for implementing and enforcing the sanction regime, which includes freezing assets and economic resources.

Reconstructing Corporate Chains

Italy’s approach has proven particularly effective in reconstructing corporate chains that allowed the direct or indirect imputability of economic resources to entities designated by the EU, even in cases where the imputability was hampered by the presence of corporate schemes or tools used to circumvent the European sanctions framework.

Utilizing Effective Databases

In addition, Italian authorities can rely on a range of effective databases, including:

• The Register of financial accounts held in Italy at the Revenue Agency
• The registers of beneficial owners

These databases are used for financial analyses, investigative purposes, and the application of preventive measures.

International Cooperation

Italian authorities have also been working to strengthen their AML/CFT measures through international cooperation. The country has been a member of the Financial Action Task Force (FATF) since 1990 and has been actively participating in its activities.

Conclusion

Overall, Italy’s financial sector has made significant progress in strengthening its AML/CFT measures, which is expected to enhance the country’s financial stability and reduce the risk of money laundering and terrorist financing.