Compliance in Progress Summary

The Financial Action Task Force (FATF) conducted a mutual evaluation of Italy's Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime against the FATF's 40+9 recommendations and special recommendations in 2006. The FATF published its findings that year in a comprehensive report, in which it concluded that Italy was compliant with 17 of its recommendations and special recommendations; largely compliant with 13; partially compliant with 11; and non compliant with 6. The other two recommendations were not applicable to Italy. Italy was partially compliant with three core recommendations, namely Recommendations (R) 5 and 13 and Special Recommendation (SR) IV. For these core recommendations the FATF requires a compliance level of largely compliant or above. In February 2009, the FATF published a follow-up report, which updated the progress made by Italy on the FATF’s recommendations. This report states that Italy is now compliant or largely compliant with 13 of the 17 recommendations for which it had previously been declared partially compliant or non compliant. For the core recommendations, Italy is now considered largely compliant with R 5 and 13, and compliant with SR IV. Progress in all areas is mostly the result of the passage of Legislative Decree No 231 of 2007, a comprehensive bill that consolidated previously existing laws on AML/CFT with new principles and definitions. The Italian Foreign Exchange Office (Ufficio Italiano dei Cambi) was the Italian Financial Intelligence Unit (FIU) until January 2008, at which point it was replaced by the new FIU unit at the Bank of Italy. Legislative Decree No. 231 of 2007 implements elements of the European Union's Third Money Laundering Directive. This Directive contains the requirement that all EU member states implement the FATF's recommendations and special recommendations.

General Overview

In 2006, the Financial Action Task Force (FATF) conducted a mutual evaluation of Italy's Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime against the FATF's 40+9 recommendations and special recommendations. That year, the FATF published its findings in a report, in which it concluded that Italy was compliant with 17 recommendations and special recommendations; largely compliant with 13; partially compliant with 11; and non compliant with 6. Two recommendations were not applicable to Italy. In February 2009, the FATF published a follow-up report to the original 2006 evaluation, examining whether any changes had occurred regarding recommendations for which Italy was either non compliant or partially compliant. This follow-up report states that of the 17 recommendations for which it had previously been declared partially compliant or non compliant, Italy is now complaint or largely compliant with 13; three other recommendations have been addressed by Italian regulations, but not enough time has elapsed to determine their effectiveness; and one recommendation remains unimproved. According to the follow-up report, the majority of Italy’s improvement is due to the implementation of Legislative Decree No. 231 of 2007, which came into force January 1, 2008. The Decree consolidated existing AML/CFT regulations with 68 new articles and a technical annex in order to better define general AML/CFT principles and definitions. The FATF follow-up report concludes that despite the existence of some remaining questions, “Italy has taken sufficient action to resolve the deficiencies identified” (p. 5) in the 2006 report. According to the International Narcotics Control Strategy Report published by the United States (US) Department of State (DoS) in 2008 (hereafter referred to as “the 2008 DoS report”), Law No. 15 of 2006 gives the Italian government authority to implement the European Union's (EU) Third Money Laundering Directive (Directive 2005/60/EC). Legislative Decree No. 231 of 2007 implements elements of the Third Money Laundering Directive. This Directive contains the requirement that all EU member states implement the FATF's recommendations.

Money laundering is criminalized pursuant to Article 648 bis of the Italian Penal Code and is punishable by four to twelve years of imprisonment, and by fines of a maximum of EUR 15,240. According to the 2008 US DoS report, with approximately 600 money laundering convictions a year, Italy has one of the highest rates of successful prosecutions in the world, thus confirming the effectiveness of the Italian anti-money laundering regime. Terrorist financing is criminalized pursuant to Article 270 bis of the Italian Penal Code, which also requires financial institutions to report suspicious activity related to terrorist financing and facilitates the freezing of terrorist assets. Under Article 270 bis, prison terms range from 7 to 15 years. A testament of the effectiveness of Italy's terrorism financing legal regime is that Italy is second in the EU only to the United Kingdom in the number of individual terrorists and terrorist organizations the country has submitted to the United Nations (UN) 1267 Sanctions Committee for designation, according to the 2008 US DoS report.

The 2006 FATF report points out that Italian law provides for a comprehensive confiscation, seizure and freezing system. Article 270 bis of the Italian Penal Code facilitates the freezing of terrorist assets. Law No. 15 of 2006 gives the government authority to issue provisions enabling the freezing of non-financial assets belonging to listed terrorist groups and individuals. Italy also implements UN Security Council directives on the freezing of terrorist assets through national mechanisms and EU Regulations 2580 of 2001 and 881 of 2002. As of December 2004, 57 accounts had been frozen belonging to 55 persons, totaling $528,000 under UN resolutions relating to terrorist financing.

Created in 1997 as an autonomous body under the Bank of Italy (BoI), the Italian Foreign Exchange Office (Ufficio Italiano dei Cambi, or UIC) was Italy's Financial Intelligence Unit (FIU). According to information provided on the UIC website, as of January 1st, 2008, the UIC ceased to exist and was replaced by the Unità di Informazione Finanziaria (UIF), a unit within the BoI, per Legislative Decree No. 231 of November 2007. As noted on its website, the UIF “is the Italian Financial Intelligence Unit appointed for the prevention and countering of money laundering and terrorist financing.” The UIF's primary responsibility is to collect, analyze and disseminate all suspicious transaction reports (STRs) submitted by entities subject to the AML Law to either the Anti-Mafia Investigative Unit (Direzione Investigativa Antimafia, or DIA) or the Financial Police (Guardia di Finanza, or GdF) for further investigation. The reporting system benefits from a very elaborate computerized system to analyze aggregate data sent by banks. A 2009 US DoS report states that, in 2007, the UIF received 12,210 STRs related to money laundering and 335 related to terrorist financing. Law enforcement opened 217 investigations based on STRs. According to the 2009 US DoS report, Italy currently has 29 accounts worth $6,238,186 frozen, due to the accounts’ suspected links to terrorism.

The 2006 FATF report commends Italy for the efficiency and thoroughness of its AML/CFT law enforcement and prosecution regime, particularly noting that Italy's three main police organizations, the State Police, the Financial Police and the Carabinieri (or gendarmerie), under the coordination of the Ministry of Interior (MoI), are sufficiently staffed and fully equipped with the legal powers to prosecute all forms of money laundering and terrorism crimes. Regarding participation in international conventions, the FATF report noted that, as of the release date of the report in February 2006, Italy had yet to ratify the Palermo Convention (the UN Convention against Transnational Organized Crime) and had yet to fully implement the UN International Convention for the Suppression of the Financing of Terrorism on the definition of the terrorism financing offence. However, a 2008 US DoS report observes that Italy is party to both Conventions. The FATF, in its 2008-2009 Annual Report, named Italy as one of the jurisdictions that have endorsed the FATF's 40+9 recommendations.

The Principles

CP1. Legal Systems and Related Institutional Measures

The 2006 FATF report found Italy compliant with Recommendation (R) 1 regarding the money laundering offence, however, found the country only partially compliant with R 2 on its mental element and corporate liability. However, the report recommended that Italy make money laundering penalties “more proportionate and dissuasive” (p. 100) in order to better comply with R 2. In February 2009 the FATF published the results of a mutual evaluation follow-up report to the original 2006 report. In it, the FATF states that “Italy has addressed this deficiency with the introduction of a new sanction regime applicable to legal persons” (p. 15). Money laundering is criminalized pursuant to Article 648 bis of the Italian Penal Code, which is complemented by two other offences which punish the possession or acquisition of proceeds from crime, or its use for economic or financial purposes. Money laundering is punished by four to twelve years of imprisonment, and by fines of a maximum of EUR 15,240. Law No. 15 of 2006, gives the government authority to implement the EU's Third Money Laundering Directive (Directive 2005/60/EC), which contains the requirement that all EU member states implement the FATF's recommendations. According to the 2008 US DoS report, Legislative Decree No. 231 of 2007 implements elements of the Third Money Laundering Directive. The 2006 FATF report also noted that with approximately 600 money laundering convictions a year, Italy has one of the highest rates of successful prosecutions in the world, thus confirming the effectiveness of the Italian anti-money laundering regime.

Italy is rated largely compliant with Special Recommendation (SR) II on the criminalization of terrorist financing as noted in the 2006 FATF report. Terrorist financing is criminalized pursuant to Article 270 bis of the Italian Penal Code, which also requires financial institutions to report suspicious activity related to terrorist financing and facilitates the freezing of terrorist assets. Under Article 270 bis, prison terms for terrorism financing crimes range from seven to fifteen years. In October 2001, Italy adopted a law that created the Financial Security Committee (FSC), which coordinates all Italy's efforts at tracking terrorist financing. FSC members include the Ministries of Finance, Foreign Affairs, Home Affairs, and Justice; the BoI; the UIC (replaced by the UIF in 2008); the Companies and Stock Exchange Commission (CONSOB, Italy's securities market regulator); GdF; the Carabinieri; the National Anti-Mafia Directorate (DNA); and the DIA. A testament of the effectiveness of the terrorist financing legal regime is that Italy is second in the EU only to the United Kingdom in the number of individual terrorists and terrorist organizations the country has submitted to the UN 1267 Sanctions Committee for designation. However, regarding deficiencies in Italy's terrorist financing legal framework, the FATF report recommends that terrorist financing be extended to individual acts and defined clearly in the Penal Code. The report also states that the definition of terrorist financing under Article 270 bis of the Penal Code is not fully consistent with the existing FATF standards, since some key elements of the offence (i.e. "terrorism" or "financing") are not defined and do not extend to individual acts of terrorism.

Concerning confiscation, freezing and seizing of proceeds of crime (R 3), the 2006 FATF's mutual evaluation rates Italy as largely compliant. The FATF report points out that Italian law provides for a comprehensive confiscation, seizure and freezing system, even though the report also recommended that the definition of assets be broadened and the confiscation of assets held by third parties be made possible. Otherwise, according to the report, Italian law enforcement agencies are equipped "with more than adequate legal means to identify, trace and seize criminal and terrorist assets and the statistics illustrate the efficiency of the system in place" (p. 4). Per the 2008 US DoS report, through October 2004, Italian law enforcement seized more than 160 million euros (approximately $US 233 million) in forfeited assets in connection with money laundering.

With regards to SR III relating to the freezing of terrorist financing-related assets, the 2006 FATF mutual evaluation rates Italy as largely complaint, noting its inadequate freezing mechanisms for assets other than bank accounts as a particular weakness in Italy's terrorism financing confiscation and seizure regime. The FATF report also recommends that the rights of bona fide parties be fully protected. Article 270 bis of the Italian Penal Code facilitates the freezing of terrorist assets. Law No. 15 of 2006 gives the government authority to issue provisions enabling the freezing of non-financial assets belonging to listed terrorist groups and individuals. Italy also implements UN Security Council directives on the freezing of terrorist assets through national mechanisms and EU Regulations 2580/2001 and 881/2002. According to the 2009 DoS report, “Italy currently has frozen $6,238,186 in assets in 29 accounts, belonging to persons designated terrorists under” (p. 295) UN resolutions relating to terrorist financing.

In terms of the financial intelligence unit (FIU) and its functions, the 2006 FATF report classifies Italy as largely compliant on R 26; largely compliant on R 30 regarding resources, integrity and training; and largely compliant with R 32 on statistics keeping. Created in 1997 as an autonomous body under the BoI, the UIC was Italy's FIU until January 2008, when Italy opened a new FIU unit at the BoI that assumed the responsibilities of the abolished UIC. This new unit is known as the Unità di Informazione Finanziaria (UIF). According to information provided on the UIF website, the UIF “is the Italian Financial Intelligence Unit appointed for the prevention and countering of money laundering and terrorist financing.” The formation and activity of the UIF are governed by Legislative Decree No. 231 of 2007. The website also states that “the UIF analyzes the suspicious transactions reported by financial intermediaries and other entities subject to reporting requirements, as well as any other fact that could be related to money laundering or terrorist financing.“ It does this by collecting data from financial intermediaries and other entities, using information gathered by other supervisory authorities, and working with other law enforcement agencies. Furthermore, the UIF analyzes financial flows for anomalous patterns, performs inspections, and cooperates with various foreign and international organizations. The 2009 US DoS report states that the UIF received 11,994 suspicious transaction reports (STRs) from credit and financial institutions in 2007, and 6,664 STRs in the first half of 2008. Of these, 11,513 money laundering reports were sent to law enforcement authorities for further investigation in 2007 with 5,823 being sent in the first half of 2008. These led to 217 cases of “judicial follow up” in 2007 and 54 follow up cases through June 2008. Meanwhile, for the same time periods, the UIF received 335 and 146 STRs related to terrorist financing. The 2009 US DoS report further states that Italy currently has 29 accounts frozen, valued at $6,238,186, due to the accounts’ suspected ties to terrorism.

The 2006 FATF's mutual evaluation observes that Italy is compliant with R 27 on law enforcement authorities; compliant with R 28 on the powers of competent authorities; largely compliant on resources, integrity and training; and largely complaint on statistics. The 2006 FATF report commended Italy for the efficiency and thoroughness of its AML/CFT law enforcement and prosecution regime, particularly noting that Italy's three main police organizations, the State Police, the Financial Police and the Carabinieri (or gendarmerie), under the coordination of the Ministry of Interior, are sufficiently staffed and fully equipped with the legal powers to prosecute all forms of money laundering and terrorism crimes. As a result, with approximately 600 money laundering convictions per year, Italy has a record of prosecutions in money laundering cases which scores among the best in the region. Regarding terrorist financing, Italy recorded a relatively modest 29 convictions from 2000-2004. Legislation was passed in July 2005 with the aim to help improve the rate of terrorism financing prosecutions and convictions.

CP2. Preventive Measures - Financial Institutions

The 2006 FATF report found Italy partially compliant with R 5 relating to customer due diligence (CDD) and non-compliant on R 6 concerning politically exposed persons. On correspondent banking (R 7), Italy was non-compliant, and on new technologies and non face-to-face business (R 8), Italy was rated as compliant. However, the 2009 FATF follow-up report states that over the intervening years, “the deficiencies relating to Recommendation 5 have been resolved at a sufficient level,” (p. 11) with the overall level of compliance now being largely compliant. Meanwhile, the same follow-up report states that the provisions of Legislative Decree No. 231 of 2007 “sufficiently meet the identified deficiency” (p. 15) on R 6. Likewise, according to the report, “Italy has included all requirements related to Recommendation 7 into” (p. 15) Legislative Decree No. 231, prompting the FATF to declare that “the deficiency is considered to be addressed” (p. 16)

The 2006 FATF's mutual evaluation rates Italy compliant with R 10 on record keeping, and non-compliant with SR VII on wire transfer rules. The primary shortcoming cited for the non-compliance rating for Italy on SR VII was the absence in Italian law and regulations of requirements for financial institutions to have effective risk-based procedures to identify and handle incoming wire transfers that are not tagged with account number and address information. However, the FATF follow-up report of 2009 states that SR VII’s “deficiency has been fully addressed on the EU level through EC regulation 1781/2006,” though an explicit compliance level is not mentioned.

The 2006 FATF mutual evaluation rated Italy partially compliant with R 13 relating to suspicious transaction reporting and compliant with R 14 about protection for whistleblowers and prohibitions against tip-offs. With regards to R 13, the evaluation noted as deficiencies: (1) the reporting of terrorism financing-related STRs is not explicitly required in Italian law (it is, however, required in circulars issued by the UIC, which was replaced by the UIF in 2008); and (2) the money laundering reporting requirement for STRs is not being adequately implemented by bureaux de change, the postal bank, stockbrokers, investment companies, trust companies and insurance companies. However, the FATF follow-up report of 2009 indicates that the problems relating to R 13 have been mostly solved, with the report declaring, “Italy is considered to have addressed the deficiencies and reached a satisfactory level of compliance, comparable to a largely compliant rating” (p. 12). On R 19 regarding other forms of reporting, the 2006 FATF mutual evaluation rates Italy as compliant, and Italy was given a partially compliant rating with R 25 on guidelines and feedback. The evaluation also rated Italy as partially compliant with SR IV relating to suspicious transactions reporting linked with terrorism. The 2009 FATF follow-up report, however, provides an update to Italy’s progress in these areas. The report states that Legislative Decree 231 of 2007 provides provisions to deal with the deficiencies of R 25, but stops short of explicitly declaring that the shortcomings have been addressed or that Italy is fully compliant with R 25. It notes that the effectiveness of these provisions that deal with R 25 have not yet been tested in practice. As for SR IV, the report concludes that Italy has addressed this deficiency “by extending the reporting obligation to transactions related to terrorist financing” (p. 12), which makes Italy essentially compliant with this SR. The 2006 FATF mutual evaluation rates Italy largely compliant with R 15 relating to internal controls, compliance and audit. While the Anti-Money Laundering Law requires supervised financial institutions to establish adequate internal controls and to provide training for their staff, the FATF report also notes that such internal control requirements are far less developed and implemented in other sectors.

On R 22 addressing foreign branches and subsidiaries, Italy was rated as partially compliant by the 2006 FATF mutual evaluation. This low rating was due to two main shortcomings, namely: (1) there are no specific provisions in Italian law or regulations mandating the application of AML/CFT principles to foreign branches of financial institutions other than of banks or to majority-owned foreign subsidiaries of Italian financial institutions; and (2) there are no requirements in Italian law or regulations for foreign representatives of Italian financial institutions to notify competent authorities of their inability to comply with AML/CFT principles, when this is prohibited by the laws or regulations of the host country. However, the 2009 FATF follow-up report notes changes in this area. Like other previous deficiencies, those of R 22 have been addressed through Legislative Decree No. 231 of 2007. Specifically, “Article 11, paragraph 4, of the Decree requires foreign branches . . . of Italian financial intermediaries to carry out CDD obligations in compliance with Italian Law or, at least, through measures equivalent to those laid out in the Italian legislation,” and “to notify the competent supervisory authority whereby the foreign legislation does not permit application of Italian law or equivalent measures” (p. 18). Italy was adjudged partially compliant with R 18 pertaining to shell banks under the original FATF report, but the 2009 follow-up report notes that Legislative Decree No. 231 now explicitly prohibits relationships between financial institutions and shell banks. This results in the FATF declaring that these previous deficiencies have been “sufficiently addressed” (p. 18).

According to the 2006 FATF report, Italy was partially compliant with R 17 regarding sanctions and R 23 relating to regulation, supervision and monitoring. The FATF originally found Italy to be lacking in its on-site inspections and punitive measures taken. However, the 2009 FATF update reports substantial progress in these areas, covering both R 17 and R 23. The follow-up report states that Legislative Decree No. 231 has provided for a greater range of sanctions which are in line with penalties elsewhere. The minimum range of sanctions is now six months to three years with fines between EUR 100 and EUR 50,000, with higher amounts for more serious crimes. In terms of the supervisory requirements of R 23, the FATF follow-up report states that “Italy has gone beyond enhancing the effectiveness of the supervisory regime” (p. 14). There are still some shortcomings, however, which lead the FATF to conclude that overall Italy is largely complaint on R 23.

EN3. Preventive Measures - Designated non-Financial Business and Professions

The 2006 FATF report found Italy non-compliant with R 12 on CDD and record keeping obligations for Designated non-Financial Business and Professions (DNFBPs). Italy's CDD and record-keeping requirements (as set out in R 5, R 6, R 8 and R 11) do not sufficiently apply to some DNFBPs (as stipulated by the Anti-Money Laundering Law), such as internet casinos, dealers in precious stones and dealers in precious metals. Furthermore, although the Anti-Money Laundering Law covers all DNFBPs, the implementation regulations are not in force. As a result, DNFBPs are not obliged to comply with the AML/CFT requirements.

On R 16 regarding STRs for DNFBPs, Italy is rated as non-compliant. Similarly, concerning R 24 on DNFBP regulation, supervision and monitoring, the 2006 FATF mutual evaluation rated Italy as non-compliant. Primarily, as with R 12, the evaluation attributed this R 16 rating to the fact that the implementation regulations of the AML Law as they pertain to STRs for DNFBPs have yet to be enforced. Regarding R 24, the FATF report noted that the authorities have not yet designated a supervisor for the DNFBPs, nor have they arranged additional supervisory capacity and resources that will be required. As such, casinos and other DNFBPs are not monitored for AML.

According to the 2009 FATF update, however, Italy has made some progress in these areas. The report states that “Italy has enacted and implemented a comprehensive range of measures to correct” (p. 17) its previous deficiencies on R 12 compliance, especially through Legislative Decree 231, which addresses CDD and record keeping. However, the report qualifies this praise with the caveat that it is too early to assess the effectiveness of the new regulations, given the short time frame between their enactment and the publishing of the report. The FATF update summarizes its assessment as follows: “It is difficult to ascertain through a paper-based off-site review that all provisions in the Decree relating to Recommendation 12, 16 and 24 are effectively implemented. However, the law is in place, and Italy can already report some first results that suggest growing effectiveness” (p. 17).

The 2009 US DoS report echoes the progress mentioned by the 2009 FATF report. According to the report, since the 2006 FATF evaluation, the Government of Italy (GoI) has enacted a decree to broaden the category of institutions and professionals subject to anti-money laundering regulations. The list now includes accountants, debt collectors, exchange houses, casinos, real estate agents, brokerage firms, gold and valuables dealers and importers, auction houses, art galleries, antiques dealers, labor advisors, lawyers, and notaries. Ministerial Decrees No. 141, 142 and 143 of 2006 were implemented regarding AML measures for DNFBPs. The 2009 DoS report also notes that, in Italy, "money launderers predominantly use nonbank financial institutions for the export of undeclared or illicitly obtained currency – primarily US dollars and euros – for laundering in offshore companies" (p. 292).

CP4. Legal Person and Arrangements & Non-Profit Organizations

The 2006 FATF mutual evaluation reports that Italy is compliant with R 33 relating to legal persons and access to beneficial ownership and control information. However, Italy is only partially compliant with the FATF's recommendation on legal arrangements and beneficial owners (R 34) since even though Italy has ratified the Hague Convention on the law applicable to trusts and their recognition, Italian legislation does not specifically provide for legal arrangements like trusts. The FATF report recommends that Italian authorities take steps to: (1) guarantee the transparency of foreign trusts operating in Italy; and (2) ensure access to adequate, accurate and timely information on the beneficial ownership and control of these trusts. The 2009 FATF update indicates that Italian law has still not been modified to address the two recommendations mentioned above. On SR VIII relating to non-profit organizations, the 2006 mutual evaluation finds Italy compliant.

CP5. National and International Co-operation

The 2006 FATF report finds Italy largely compliant with R 31 on national cooperation, and largely compliant with R 32 on statistics. Regarding the rating assigned to R 31, the FATF report states that "the Ministry of Home Affairs (MHA) appears to effectively coordinate, through the Department of Public Security and its General Director, the law enforcement efforts of the five national police forces belonging to the different ministries" (p. 9). Also, the DNA, Italy's anti-Mafia prosecutorial outfit, coordinates and supports the efforts of the regional organized crime prosecutors.

The 2006 mutual evaluation rates Italy partially compliant with R 35 regarding the ratification of international conventions, and largely compliant with SR I on implementing UN instruments. Most importantly regarding R 35, the FATF report notes that, as of the release date of the report in February 2006, Italy had yet to ratify the Palermo Convention (the UN Convention against Transnational Organized Crime). However, a subsequent report, namely the 2008 US DoS report notes that Italy is party to the Palermo Convention. Furthermore, this report notes that Italy is also a party to the 1988 UN Drug Convention, as well as the Council of Europe Convention on Laundering, Search, Seizure, and Confiscation of the Proceeds from Crime. The 2009 FATF update also notes that Italy has ratified the Palermo Convention, making it compliant with R 35. Italy has also signed, but has not yet ratified, the UN Convention against Corruption. Also, according to the 2009 US DoS report, the UIF belongs to the Egmont Group, meaning it shares information about suspicious financial transactions with other nations’ FIUs. Regarding SR I on implementing UN instruments, the FATF report observed that Italy had yet to fully implement the UN International Convention for the Suppression of the Financing of Terrorism on the definition of the terrorism financing offence. The 2008 and 2009 US DoS reports note that Italy is party to the UN International Convention for the Suppression of the Financing of Terrorism, but falls short of stating that it has been fully implemented by Italy.

According to the 2006 FATF report, Italy is rated compliant with R 36 concerning Mutual Legal Assistance (MLA). The 2008 US DoS report notes that Italy has a particularly strong history of cooperation with the United States, signing an MLA treaty with the US and providing assistance on an informal basis. The US and Italy have signed a customs mutual assistance agreement, as well as extradition treaties. In May 2006, the US and Italy signed a new bilateral instrument on mutual legal assistance as part of the process of implementing the US/EU Agreement on Mutual Legal Assistance, signed in June 2003. However, the 2009 US DoS report notes that this treaty had not yet been ratified by Italy as of November 2008.

Italy is compliant with R 37 on dual criminality and compliant on R 38 pertaining to MLA on confiscation and freezing according to the 2006 FATF report. On R 38, the 2008 US DoS report states that "Italian cooperation with the United States on money laundering has been exemplary" (p. 284). With regards to SR V on international cooperation, the mutual evaluation rated Italy as compliant. The US DoS report adds that, as of March 2008, the Italian UIF has signed memoranda of understanding (MoUs) with 12 other FIUs, primarily in Europe, and is negotiating agreements with 8 other FIUs, primarily in Asia. The FATF evaluation also adjudges Italy to be compliant on R 39 relating to extraditions, adding that Italy, as a member of the EU, is signatory to the European Arrest Warrant, which increases the speed of extradition throughout EU countries. Finally, on R 40 pertaining to other forms of international co-operation Italy is rated compliant by the FATF assessors.