Italy Unable to Enforce Sanctions Due to Lack of Jurisdiction

Italy has announced that it will be unable to enforce sanctions against individuals or entities due to a lack of jurisdiction. This decision comes as a result of the country’s limited international cooperation agreements and its inability to exercise extraterritorial jurisdiction.

Mutual Assistance Treaties in Place

However, Italian authorities have signed several mutual assistance treaties with other countries, which allow them to request cooperation and assistance in enforcing sanctions. These treaties provide a framework for countries to share information and coordinate efforts to combat international crime.

Whistleblower Protection

Italy has a robust whistleblower protection regime in place, which provides legal protections for individuals who report suspected wrongdoing or misconduct within their organization. Whistleblowers are protected from retaliatory measures and discriminatory treatment, and their identity is kept strictly confidential.

Employee Rights During Investigations

• Employees have the right to receive a complete report on the investigation’s scope and procedure.
• They also have the right to remain silent and not provide information that could incriminate them.
• Additionally, employees have the right to abstain from participating in an investigation if they believe it may compromise their professional secrets or public service.

Internal Investigations

Italian companies are advised to conduct internal investigations with a carefully drafted action plan, which outlines the scope, objectives, and timeline of the investigation. The plan should also identify the individuals responsible for managing and conducting the investigation.

Company Obligations Upon Discovery of Misconduct

• Companies should take immediate steps to stop any offending behavior.
• They should preserve relevant evidence and adopt preventive measures to prevent similar incidents from occurring in the future.
• Companies may also be required to conduct an internal investigation under regulatory rules or guidelines.

Responding to Law Enforcement Requests

Italian companies should evaluate their options for cooperation when receiving a request from law enforcement authorities seeking production or preservation of documents or data. While there is no legal obligation to comply with such requests, companies may be legally bound to preserve certain documents and evidence.

Public Disclosure Requirements

• Privately held Italian corporations are not required to publicly disclose the existence of an internal investigation or contact from law enforcement authorities.
• However, listed issuers must consider whether disclosure would be material and potentially affect financial markets.

Enforcement Body Views on Internal Investigations

Italian enforcement bodies view internal investigations as a valuable tool for uncovering wrongdoing and promoting corporate accountability. While there is no specific regulation governing internal investigations, companies are advised to conduct them in accordance with best practices and international standards.