Money Laundering Threat to Italian Economy Considered Low
Despite the existence of a significant criminal economy in Italy, the threat of money laundering affecting the country’s economy is deemed low by financial intermediaries. According to a recent report by the Ministry of Economy and Finance’s Financial Security Committee, the safeguards and monitoring activities in place in Italy have been effective in preventing money laundering.
Factors Contributing to Low Risk
The report notes that the risk of capital from abroad being laundered in Italy is perceived as low due to:
- Anti-money-laundering safeguards
- Economic situation
- Tax burdens
These factors discourage the entry of illicit funds into the country, making it less likely for money laundering to occur.
Criminal Economy Estimated at 8.7% of GDP
A study by SOS Impresa estimates that the turnover of mafias in Italy amounts to €138 billion, equivalent to 8.7% of the country’s GDP. Another study by Transcrime puts the figure at between €17.7 and €33.7 billion.
Money Laundering Has Anti-Cyclical Nature
A study by the Bank of Italy found that money laundering in Italy has an anti-cyclical nature, increasing during times of economic crisis. The same report estimates that the amount of undeclared tax was equivalent to 16.5% of GDP between 2005-2008.
Predominant Criminal Behaviors
The report identifies the following as the most significant criminal behaviors in Italy:
- Corruption
- Extortion
- Tax evasion
- Usury
These crimes are often linked to organized crime groups, which generate vast amounts of money that can be laundered through various means.
Estimated Proceeds of Predicate Offences
According to the report, the estimated proceeds of predicate offences in Italy include:
- Corruption: €15.2 billion
- Tax evasion: €140 billion (average for 2011-2016)
- Drug trafficking: €14.2 billion
- Extortion: unknown
- Usury: unknown
Organized Crime Remains Dominant Perpetrator
The report highlights that organized crime remains the dominant perpetrator of criminal behaviors in Italy, with foreign criminal organizations also playing a significant role. However, local criminal organizations have shown little interest in human trafficking and sexual exploitation.
Overall, while money laundering is a significant threat to the Italian economy, the country’s safeguards and monitoring activities have been effective in preventing its entry into the legal financial system.