FATF Urges Italy to Strengthen Money Laundering Protections After Recent Assessment

The Financial Action Task Force (FATF) has urged Italy to strengthen its enforcement of money laundering laws, particularly by ensuring that sanctions for such offenses are not limited to cases tied to organized crime.

In an assessment released on April 23, 2026, FATF acknowledged that Italy has made significant progress in combating money laundering and terrorist financing, noting a high number of prosecutions and convictions related to organized crime and standalone money laundering, as well as substantial confiscation of illicit assets by authorities.

However, the global watchdog pointed out that sanctions applied for money laundering in Italy remain on the lower end of the spectrum, largely because the country’s enforcement focus is concentrated on organized crime-related cases.

FATF also commended Italy’s financial institutions, virtual asset service providers, and designated non-financial businesses and professions for demonstrating a strong understanding of their obligations under targeted financial sanctions related to terrorist financing and proliferation financing, and for maintaining proper compliance processes.

The report emphasized that Italy must ensure that new designations for terrorist financing-related targeted financial sanctions are systematically and promptly implemented by all natural and legal persons without delay.

Italy’s Ministry of Economy and Finance welcomed the assessment, describing it as an “overall favorable evaluation” and highlighting improvements since the previous review in 2016, including a stronger institutional and operational framework and enhanced capabilities in detecting and countering illicit financial activities.

The FATF assessment forms part of ongoing global efforts to improve anti-money laundering and counter-terrorist financing regimes, with similar scrutiny being applied to other jurisdictions to ensure compliance with international standards.