Italy Country Summary

FATF Status

Italy is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Italy was undertaken by the Financial Action Task Force (FATF) in 2019. According to that Evaluation, Italy was deemed Compliant for 18 and Largely Compliant for 20 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 8 of the Effectiveness & Technical Compliance ratings.

Crime and corruption remain significant challenges in Italy, particularly impacting investment and economic growth, especially for micro, small, and medium-sized enterprises. Despite the government's efforts to strengthen anti-corruption laws and improve enforcement, issues such as human trafficking, organized crime, and financial crimes, including tax evasion, continue to undermine resilience against criminal activities.

Italy's economy, ranked as the eighth largest globally and the third in the EU, showcases competitiveness in various sectors such as business services, agriculture, fashion, and tourism. Despite a resilient economic backdrop, GDP growth has slowed from 4.0% in 2022 to an anticipated 0.9% in 2023, with forecasts suggesting further deceleration to 0.7% in 2024, primarily due to inflation and tightening financial conditions. The National Recovery and Resilience Plan (NRRP) aims to address structural issues and promote growth through substantial EU funding, although challenges in administrative capacity and bureaucratic inefficiencies persist, impacting the investment climate for both domestic and foreign investors.