FATF Evaluation Finds Italy Strong on Financial Crime Controls but Identifies Transparency and Enforcement Gaps

On 23 April 2026, the Financial Action Task Force published its mutual evaluation of Italy, assessing the country’s anti-money laundering, counter-terrorist financing, and counter-proliferation financing framework, alongside its compliance with FATF Recommendations. The review reflects an on-site assessment conducted between June and July 2025 and examines both effectiveness and technical compliance across Italy’s system for combating illicit finance.

The evaluation concludes that Italy operates a comprehensive whole-of-government framework to address financial crime, supported by advanced inter-agency coordination that enables information sharing, joint investigations, and unified operational responses—particularly in complex cases involving serious organized crime. However, the FATF identifies ongoing limitations in access to beneficial ownership information as a key structural weakness requiring further reform.

Italy demonstrates a strong national understanding of money laundering and terrorist financing risks, supported by three national risk assessments and reinforced by operational intelligence from relevant authorities. Criminal activity is largely driven by organized crime, including domestic Mafia-style groups. Within the financial sector, awareness of risk is generally strong, particularly among major banking institutions, while virtual asset service providers show comparatively weaker understanding. Coordination mechanisms, including the Financial Security Committee, provide structured cross-agency collaboration and policy alignment.

International cooperation is described as well-developed and actively utilized. Italian law enforcement agencies engage extensively with foreign counterparts through Joint Investigative Teams, ARIN/CARIN networks, and Guardia di Finanza liaison officers stationed abroad. During the assessment period, Italy participated in over 50 Joint Investigative Teams across Europe, initiating 37 of them.

Supervisory and preventive systems are robust, particularly in preventing criminals from controlling financial institutions or virtual asset service providers. Banca d’Italia applies a continuous risk-based supervisory model, but the FATF notes shortcomings including delayed sanctioning processes and limited publication of enforcement actions, which reduce transparency and deterrence. While licensing frameworks exist for Designated Non-Financial Businesses and Professions, effectiveness varies significantly across sectors.

Italy has a solid understanding of risks associated with legal persons and arrangements, including foreign entities with links to the country. Criminal infiltration of companies is recognized as a common money laundering method, and mitigation measures are in place. However, the FATF highlights persistent deficiencies in beneficial ownership transparency and notes that sanctions for failing to submit accurate business registry information are often insufficiently dissuasive.

Financial intelligence capabilities are assessed as highly effective. The Unità di Informazione Finanziaria plays a central coordinating role in receiving, analyzing, and disseminating suspicious transaction reports. It works alongside law enforcement units such as the Guardia di Finanza and Direzione Investigativa Antimafia, contributing to investigations, asset tracing, and disruption of laundering schemes.

Italy’s enforcement framework for money laundering investigations and asset recovery is particularly strong, supported by extensive legal powers and advanced investigative tools. Authorities recovered more than EUR 7 billion during the evaluation period, reflecting a strategic emphasis on confiscation and asset recovery. While prosecution rates are high, sanctions for money laundering offenses are generally considered relatively low given Italy’s focus on organized crime cases.

In the area of terrorist financing and proliferation financing, Italy identifies cases primarily through suspicious transaction reporting, financial investigations, and intelligence sharing. Authorities conduct both parallel and stand-alone investigations, resulting in a significant number of prosecutions and convictions. Compliance with targeted financial sanctions obligations is generally strong across financial institutions and regulated entities, though the FATF notes that implementation of new designations is not always immediate and should be more systematically enforced.

Following the evaluation, Italy has been assigned a three-year action plan with key recommended reforms, including improving DNFBP understanding of money laundering risks and addressing deficiencies in beneficial ownership transparency. The country will remain in regular follow-up and is required to report progress to the FATF.

Effectiveness Ratings (Immediate Outcomes)

Immediate Outcome	Rating
IO1	SE
IO2	SE
IO3	SE
IO4	ME
IO5	ME
IO6	SE
IO7	SE
IO8	SE
IO9	SE
IO10	ME
IO11	SE

Legend: HE = High effectiveness | SE = Substantial effectiveness | ME = Moderate effectiveness | LE = Low effectiveness

Technical Compliance Ratings (FATF Recommendations)

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

Legend: C = Compliant | LC = Largely compliant | PC = Partially compliant | NC = Non-compliant | NA = Not applicable

By fLEXI tEAM