Italy

1. Does Italy have legislation making it a criminal offence to engage in money laundering and/or terrorist financing?

Italy has adopted a variety of legislative acts to make money laundering and terrorism financing criminal offences.

In particular, provisions are contained in: the Italian Criminal Code; the Italian basic AML Law (Legislative Decree No. 231/2007); and, the Italian basic law on legal entities’ criminal liability (Legislative Decree No. 231/2001).

2. To whom does the legislation apply?

The legislation on AML and terrorist financing applies to private parties and legal entities engaging in such activities.

Furthermore, the Italian basic AML law prescribes specific rules applicable to banks, financial intermediaries, insurance companies as well as to professionals such as accountants, notaries and lawyers when performing specific tasks on behalf of their clients.

3. What does the legislation prohibit?

The legislation is aimed at preventing the proceeds of criminal activities from being channelled into legitimate activities. In particular, the legislation provides a preventive system, laying an obligation on banks and other professional operators, as well as enforcement of money laundering/terrorist financing itself, enforced by public authorities and prosecutors.

4. How is money laundering defined? Does underlying criminal activity have to be proven?

In line with EU law money laundering is defined as the transfer, concealment or use of goods or means deriving from a criminal activity. The underlying activity has to be proven, though criminal prosecutors may issue precautionary measures, such as seizures, even before it has been proven.

5. What level of intent or knowledge is required to establish a violation?

The criminal offences of money laundering and terrorism financing require the full knowledge of the origination of the goods or the means to be integrated and proved.

Professional operators may be held liable even in cases of negligent lack of controls.

6. What are the potential penalties for infringing the legislation?

Potential penalties for infringing legislation may vary widely depending on the violation.

Natural persons committing terrorist financing may be punished with imprisonment of up to 15 years.

Money laundering shall be punished with imprisonment of up to 12 years and a monetary fine of up to € 25,000.00.

Intentional falsifications or negligent acts committed by professionals operators shall be punished with up to three years of imprisonment and with monetary fines of up to € 30,000.00, and with monetary fines only in the less serious cases.

Legal entities taking advantage of illicit activities may be sanctioned with monetary fines and seizures of the goods.

7. Does the legislation have extra-territorial reach?

In general, Italian AML legislation shall apply to offences committed in Italy.

Offences committed outside Italy shall be prosecuted by Italian criminal courts where specific requirements are fulfilled (mainly, the presence of the suspect in the Italian territory). In addition, legal entities based in Italy committing illicit activities abroad shall be prosecuted here if no action is brought against them in other counties.

8. Are there additional anti-money laundering or counter terrorist financing regulations or obligations, such as registration or reporting obligations, for businesses or individuals that operate in particular sectors or undertake particular activities?

Specific reporting obligations are provided only for the operators identified by the basic AML legislation, such as banks, financial intermediaries, insurance companies and, in some specific cases, professional consultants acting for corporates.

9. What are the potential penalties for failing to comply with these obligations?

The penalties established by the basic AML law against professional operators mainly consist of the payment of fines to be imposed by the competent authorities.

In cases of repeated or more serious breaches, authorities may order the temporary suspension of their activity.

10. Who are the relevant enforcement authorities in Italy and what are their contact details?

Enforcement authorities in Italy are the following: