Italy

New Documents

The Bank of Italy and the Japan Financial Services Agency signed a memorandum of cooperation on Dec. 23, 2020 concerning the supervision of cross-border financial institutions.

The Commodity Futures Trading Commission and the Commission Nazionale per le Società e la Borsa signed a memorandum of understanding to cooperate on the supervision of cross-border firms.

News

Enforcement Actions

The Bank of Italy issued a decision requiring the Milan, Italy branch of ING Bank to refrain from engaging in transactions with new customers following a finding of shortcomings in compliance with anti-money laundering requirements.


Important Facts

  • The U.S. State Department identifies Italy as a major money laundering country. Italy has a sophisticated anti-money laundering regime and legal framework. However, money-laundering risks continue to arise from activities associated with organized crime and a large, unregulated shadow economy. Drug trafficking is a primary source of income for Italy’s organized crime groups, which exploit its strategic geographic location to do business with foreign criminal organizations in Eastern Europe, China, South America, and Africa. Other major sources for money laundering include: proceeds from tax evasion and value-added tax fraud, smuggling and sale of counterfeit goods, extortion, corruption, illegal gaming, illegally disposing of hazardous waste, and loan sharking. Also, private banking, real estate transactions, gaming, the art trade, nonprofit organizations, small cash businesses and financial technologies provide large avenues for money laundering. While on the rise, customer due diligence and suspicious transaction reporting remain weak among non-financial sectors, and regulations in Italy are inconsistent. In 2019, the government published a regulation to implement new provisions on anti-money laundering and counterterrorist financing, which align the country with EU efforts. Regulations require financial institutions to apply enhanced due diligence measures in transactions involving both domestic and foreign politically exposed persons.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 18 High : 0
Largely Compliant : 20 Substantial : 8
Partially Compliant : 2 Moderate : 3
Non-Compliant : 0 Low : 0

Italy's technical compliance was re-rated in a March 27, 2019 follow-up report

BASEL i

Rank : 99/141
Score : 4.61/10

TRANSPARENCY INTERNATIONAL i

Rank : 51/180
Score : 53/100

Tax Justice Network i

Rank : 41/133
Score : 50/100