Italy’s Economy Haunted by Money Laundering Threat

Rome, Italy - A new report has highlighted the significant threat posed by money laundering activities to Italy’s economy. The analysis reveals that illegal activities generated an estimated 1.7% to 12% of GDP in 2014, with corruption, extortion, tax evasion, and drug trafficking being the most significant criminal behaviors.

The Report

The report, compiled by the Ministry of Economy and Finance - Financial Security Committee, notes that while there is no single official estimate of the value of criminal activities, various estimates contribute to a strong assessment of the threat posed by illegal proceeds. The financial crisis has provided further opportunities for criminality to enter the economic framework, with financial difficulties leading to the growth of usury and making businesses and individuals more vulnerable.

Money Laundering Threat Assessment

The analysis identified the following as the most significant criminal behaviors:

• Corruption: 1.7% to 12% of GDP in 2014
• Extortion: significant threat
• Tax Evasion: estimated at €140 billion euros
• Drug Trafficking: estimated at €15.2 billion euros
• Prostitution: mainly reinvested outside Italy’s economy
• Gambling: illegal and legal, with organized crime playing a significant role

Recommendations

To combat money laundering and terrorist financing, the Ministry of Economy and Finance - Financial Security Committee has called for:

• Increased vigilance and cooperation between authorities and financial institutions
• Strengthening anti-money-laundering safeguards
• Enhancing economic stability and reducing financial difficulties
• Improving tax compliance and enforcement
• Combating corruption and organized crime

Conclusion

The report highlights the need for sustained efforts to combat money laundering and terrorist financing, and for authorities and financial institutions to work together to protect Italy’s economy from these threats.