Italy Introduces New Anti-Money Laundering Regulations for 2023
The Bank of Italy has announced new anti-money laundering regulations that will take effect on November 14, 2023. The regulations aim to strengthen the fight against money laundering and terrorist financing.
Key Changes
- Introduction of a new role: Anti-Money Laundering Representative who will be responsible for monitoring the effectiveness of anti-money laundering policies and procedures within an institution.
- This representative must have adequate knowledge and experience in anti-money laundering matters and report directly to the corporate bodies.
- Strengthened role of the anti-money laundering function, which is now required to:
- Assess money laundering risks associated with new services and products
- Define procedures for managing internal reports
- Ensure periodic information flows to corporate bodies on the implementation of corrective actions
- Outsourcing anti-money laundering functions is still possible, but institutions must take measures to ensure compliance with contractual obligations and proper performance of the service by the supplier.
- Institutions are also required to appoint a representative to oversee the outsourcing process.
Group Anti-Money Laundering Matters
- Parent companies are now required to:
- Appoint an Anti-Money Laundering Representative
- Designate a head of the group’s AML function
Other Changes
- Updated parameters for applying the principle of proportionality
- Explicit obligations for SOS officers (Specifically Identified Officers)
- Option for institutions to assign internal reporting procedures to a person other than the Anti-Money Laundering Representative
Scope of the Regulations
The new regulations apply to:
- Banks
- Savings and loan associations
- Securities firms
- Investment companies
- Intermediaries registered in the register provided by Article 106 TUB
- Electronic money institutions
- Payment institutions
- Branches of banking and financial intermediaries with their registered office and central administration outside Italy
- Microcredit providers
- Poste Italiane S.p.a.
- Cassa Depositi e Prestiti S.p.a.
Exclusions
The new regulations do not apply to smaller confidi (consortia and collective guarantee cooperatives), as the Bank of Italy’s competence as anti-money laundering sector supervisor ended in 2020.