Italy Toughens Anti-Money Laundering Laws, Expands Corporate Liability

New Laws to Combat Financial Crime

In a significant move aimed at strengthening its anti-money laundering regime, Italy has introduced new laws that expand corporate liability for companies involved in fraudulent activities. The changes, which came into effect on December 14 and 15, 2021, were implemented through two legislative decrees: Decree No. 184 and Decree No. 195.

Key Provisions of the New Laws

• Corporate Liability: Companies will be held liable for offenses related to non-cash payments, including:
  • Unauthorized use and falsification of credit cards or other payment methods
  • Possession and distribution of equipment used to commit such crimes
  • Computer fraud involving transactions with virtual currencies
• Expanded Scope of Anti-Money Laundering Offenses: The amendments expand the scope of anti-money laundering offenses to include property acquired or concealed as a result of minor criminal offenses or non-intentional offenses.
• New Set of Offenses Triggers Corporate Liability: Companies must assess whether they need to update their internal policies and procedures to prevent the commission of such crimes.

Compliance Requirements for Companies

To comply with the new laws, companies must:

• Ensure robust anti-fraud controls are in place
• Assess internal policies and procedures to prevent money laundering
• Review and update customer due diligence and assessment of suspicious transactions processes

Impact and Implementation

The changes are seen as a significant step forward in Italy’s efforts to combat financial crime and bring its laws into line with European Union directives. However, the exact scope and impact of the new laws will depend on how they are interpreted by the courts and implemented in practice.