Italy's progress in strengthening measures to tackle money laundering and terrorist financing

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English

Country

Italy

Follow-Up Report Italy 2019

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Follow-Up-Report-Italy-2019.pdf
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27 March 2019 –  This report analyses the actions that Italy has taken to strengthen its legal, regulatory and operational framework to combat money laundering and the financing of terrorism and proliferation, since the assessment of the country’s framework in 2015. 

Italy has been in a regular follow-up process since the adoption of its mutual evaluation published in February 2016. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the actions it has taken since then.

Italy has made progress addressing the deficiencies in the Mutual Evaluation Report. As a result of this progress, the FATF has re-rated Italy on 8 of the 40 Recommendations.

1 – Assessing risks & applying a risk-based approach
16 – Wire transfers
20 – Reporting of suspicious transactions
26 – Regulation and supervision of financial institutions
27 – Powers of supervision
29 – Financial intelligence units
35 – Sanctions
40 – Other forms of international co-operation

The report also looks at whether Italy’s measures meet the requirements of FATF Recommendations that have changed since their Mutual Evaluation, taking into account any new measures since the mutual evaluation. The FATF agreed to maintain the Compliant rating for Recommendation 5 (Terrorist financing offence); maintain the Largely Compliant rating for Recommendations 2 (National co-operation and co-ordination), 8 (Non-profit organisations), 18 (Internal controls and foreign branches and subsidiaries) and 21 (Tipping-off and confidentiality); and maintain Partially compliant rating for Recommendation 7 (Targeted financial sanctions related to proliferation).

Italy has made good progress in establishing the legal, regulatory and operational framework required by the FATF. Today, it is partially compliant on only 2 of the 40 Recommendations. Italy will continue to report back to FATF on its progress.

 

 

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Italy Follow-Up Report - 2019

R.1 - Assessing risk & applying risk-based approach
C
R.2 - National cooperation and coordination
LC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
C
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
PC
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
LC
R.11 - Record keeping
C
R.12 - Politically exposed persons
LC
R.13 - Correspondent banking
PC
R.14 - Money or value transfer services
C
R.15 - New technologies
LC
R.16 - Wire transfers
C
R.17 - Reliance on third parties
LC
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
LC
R.22 - DNFBPs: Customer due diligence
LC
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
LC
R.26 - Regulation and supervision of financial institutions
C
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
LC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
C
R.32 - Cash couriers
LC
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
C
R.36 - International instruments
C
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
C
R.40 - Other forms of international cooperation
C

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

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