Crimes such as money laundering and terrorist financing have significant economic and political consequences. The laundering of crime revenues causes the crime elements can not be punished. Criminal organizations that could not be punished commit a larger variety of crimes by growing the criminal gang. Drug trafficking, arms and human trafficking, fraud, and terrorist financing are among the major crimes committed by these criminal organizations. Just by looking at these crimes, we can detect that money laundering is a big financial crime.
Italy is among the countries that worry about money laundering and take measures against this. Italy, which is under various risk threats due to its geographical location, has taken various measures in the past. Combating various crime elements, Italy is conscious of the need to detect financial crimes to increase the effectiveness of the fight. In this respect, Italy has defined money laundering crime and created relevant legislation and regulations. While Italy set the anti-money laundering regulations and legislations, they were based on FATF recommendations and European Union regulations. Thus, Italy continues its struggle with laws, regulators, and the support of law enforcement agencies to prevent financial crimes.
AML Requirements in Italy
Obligated organizations operating in Italy have to meet certain AML requirements when performing their services. Organizations have to commit financial crimes by taking the necessary measures in line with the Italian national AML regulations, FATF recommendations, and European Union directives. Financial institutions that do not meet AML obligations face various regulatory penalties. These penalties create a loss of trust and loyalty by the customers towards the organization. We have compiled for you the basic AML regulations for financial institutions.
Customer Onboarding
The customer onboarding process involves the customer's account opening process for companies. The company asks for some documents and information from the customer to open the account. The company's AML compliance officer first checks the accuracy of customer information. This is also called the Know Your Customer process. Then companies have to determine the customer's risk level. The companies scan the customer in various sanctions and PEP (Politically Exposed Person) data while determining the customer risk level. This is also called the Customer Due Diligence process. If the company does not encounter a problem, the customer opens the account.
Transaction Screening
Most financial crimes take place through financial services. Financial institutions are obliged to control customer transactions; they meditate to prevent this. Financial transactions can include money laundering, terrorism financing, corruption, and bribery. Therefore, financial institutions must establish financial control mechanisms and detect financial crimes.
How Sanction Scanner Helps
Sanction Scanner offers financial crime prevention solutions. Financial institutions can protect themselves against financial crime and ensure AML compliance with Sanction Scanner. Sanction Scanner collects sanction and PEP data from more than two hundred countries and updates it at fifteen-minute intervals. Financial institutions can scan their customer's current AML data and protect themselves from various risks. The AML solutions we develop with artificial intelligence reduce the workload of financial institutions in AML compliance processes. Financial institutions serving in Italy can contact us to ensure AML compliance.
