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Risk of Money Laundering III: Criminal Activities Within National Territory

The Italian economy faces a significant threat from illegal activities, with estimates suggesting that criminal proceeds account for between 1.7% to 12% of GDP, depending on the definition and methods used.

According to a report by SOS Impresa, the turnover of mafia-related activities in Italy was estimated to be €138 billion in 2012, equivalent to 8.7% of GDP. Another study by Transcrime reported that illegal activities accounted for 1.7% of GDP in 2010, or between €17.7 and €33.7 billion.

Financial Crisis and Criminality

The financial crisis has created new opportunities for criminality to infiltrate the economy, with financial difficulties leading to an increase in usury and making businesses and individuals more vulnerable to control by criminals.

Perception of Risk

While there is a significant risk that Italy is a destination for money laundering from abroad, the majority of financial intermediaries perceive this risk as low due to the country’s anti-money laundering safeguards, economic situation, and tax burden.

Predicate Offences

The analysis of predicate offences carried out by the Financial Security Committee has identified corruption, extortion, tax evasion, usury, drug trafficking, bankruptcy, and corporate crimes as the most significant threats. These criminal activities generate substantial proceeds that are often laundered through the financial system.

Corruption

Corruption is a particular concern, with its proceeds difficult to estimate due to their non-financial nature. Drug trafficking remains a major problem, with an estimated €15.2 billion in proceeds generated in 2020.

Assessment of Systemic Risk

The Financial Security Committee has assessed the systemic risk of money laundering in Italy as moderate to high. The country’s financial system is vulnerable to criminal exploitation due to its complex structure and lack of effective oversight.

Mitigation Measures

To mitigate this risk, it is essential that:

The government and financial institutions implement robust anti-money laundering measures, including:
- Enhanced customer due diligence
- Ongoing monitoring of transactions
- Reporting of suspicious activity
Law enforcement agencies prioritize the prosecution of predicate offences and money laundering, and work closely with international partners to disrupt criminal organizations and confiscate their ill-gotten gains.