Money Laundering in Italy: What is Money Laundering?
Money laundering consists of the transformation or transfer of money derived from unlawful activities in order to conceal its criminal origin.
Under Article 648-bis of the Italian Criminal Code, money laundering occurs when someone:
- substitutes, transfers, or carries out other operations on money, goods, or other assets derived from a crime;
- with the purpose of concealing their illicit origin or assisting others in evading legal consequences.
The concept of 'transfer' includes all stages of the movement of money of criminal origin, including withdrawals or transfers of funds following previous deposits, the transfer from one bank account to another held under a different name, and the cashing of illicit checks.
This means that not only criminals who commit predicate offenses (drug trafficking, corruption, tax fraud, etc.) are liable, but also anyone who handles or reinvests the proceeds, even indirectly.
Money Laundering in Italy: What is the penalty for money laundering in Italy?
The offense of money laundering is punishable by:
- Imprisonment from 4 to 12 years;
- Fines from €5,000 to €25,000.
These penalties apply regardless of whether the predicate offense was committed in Italy or abroad. The law emphasizes that the offense is autonomous, meaning it can be prosecuted even if the predicate crime has not yet been definitively established.
Money laundering in Italy: Aggravating Circumstances
The Italian Criminal Code provides for harsher penalties if:
- The laundering is committed in the exercise of a professional activity (e.g., financial intermediaries, lawyers, accountants);
- The act is part of an organized criminal group or transnational network;
- The amounts involved are particularly significant.
In such cases, imprisonment and fines may be increased by up to one-third.
What are suspicious transactions in money laundering?
In the context of money laundering and anti-money laundering (AML) regulations, a suspicious transaction is any financial transaction that raises red flags because it appears unusual, lacks a clear economic or lawful purpose, or seems inconsistent with a customer's known business or financial profile.
Examples of Suspicious Transactions in Money Laundering:
- Large Cash Transactions
- Deposits or withdrawals of unusually large amounts of cash inconsistent with the client's profile
- Breaking down large amounts into many smaller deposits to avoid reporting thresholds
- Rapid Movement of Funds
- Frequent transfers between accounts or across borders without an economic rationale
- Use of Shell Companies or Complex Structures
- Unexplained International Wire Transfers
- Especially to or from high-risk jurisdictions or tax havens.
- Payments made by or to individuals/entities not directly related to the deal
- Over- or under-invoicing, repeated amendments, or shipments inconsistent with the goods' value
- Funds leaving a country and then returning as "investments" to disguise their origin
Money laundering in Italy: Territorial Jurisdiction in International Cases
A key issue for foreigners and international companies is understanding where the proceedings take place.
According to Italian criminal law:
- If the money laundering activity occurs in Italy, Italian courts have jurisdiction, even if the underlying crime was committed abroad;
- If the money laundering activity is committed abroad but involves funds or assets subsequently brought into Italy, Italian jurisdiction continues to apply.
- In matters of transnational money laundering and conflicts of territorial jurisdiction, the offense is consummated in the place where the disguising of the illicit origin of the money occurs, as the mere transportation or physical transfer of the sums is not sufficient.
Money Laundering in Italy: How can help you
Foreign individuals and companies facing money laundering investigations in Italy risk severe criminal and reputational consequences.
An international law firm specialized in AML can help by:
- Defending clients in Italian courts;
- Reviewing cross-border transactions for compliance;
- Coordinating with foreign jurisdictions;
- Providing tailored strategies to protect your business and personal assets.
Are you under investigation for money laundering in Italy or worried about the compliance of your international transactions?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
