Expert Guide to Financial Sanctions Enforcement in Italy

Italy has adopted its own legislation on sanctions to combat the financing of terrorism and the activities of countries that threaten international peace and security by adopting Legislative Decree No. 109 of 22 June 2007 (hereinafter the Sanctions Decree). 

The Sanctions Decree provides for the implementation of economic sanctions adopted by the UN or the EU and introduce an autonomous sanctioning power for Italy. 

According to local legal framework – pending the introduction of international sanctions measures - autonomous sanctions may by imposed by the Ministry of Economy and Finance (MEF) with Decree, upon the proposal of the Financial Security Committee (FSC). 

Moreover, the Ministry of Economy and Finance, through the Financial Security Committee, implements the measures to freeze funds and economic resources, grants authorisations for banking and financial transactions and approves exemptions from the measures to freeze funds and other economic resources.

Yes.

Please consider that – currently - there are no subjects designated by Italy independently from international organisations; therefore, reference can be made to the consolidated lists of designated subjects published by the EU and the UN.

 https://www.dt.mef.gov.it/en/attivita_istituzionali/prevenzione_reati_finanziari/

The Ministry of Economy and Finance, through the Financial Security Committee properly established.

https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list  

https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures_en   

https://www.sanctionsmap.eu/#/main 

Actually there is not a direct criminalization in case of breach of Financial Sanctions. However, such a breach can be treated as a criminal offence pursuant to the following law. 

Italian Criminal Code:

• Article 270 bis “Association for the purpose of terrorism, including international terrorism or subversion of the democratic order”  which punishes anyone who promotes, sets up, organises, directs, participates or finances associations that propose the perpetration of acts of violence with purposes of terrorism or subversion of the democratic order;
• Article 270 quinquies 1 “Financing of conduct for terrorist purposes” which punishes anyone outside the cases referred to in Articles 270 bis and 270 quater 1, collects, disburses or makes available goods or money, howsoever realised, intended to be used in whole or in part for the commission of conduct for terrorist purposes
• Article 648bis “Money laundering” which punishes anyone who replaces or transfers money, goods or other benefits deriving from a [non-culpable] crime; or carries out other transactions in connection with them, so as to hinder the identification of their criminal origin. 

Legislative Decree 231/2001 (Administrative liability of entities)

• Article 25 quater with respect to “Crimes for the purpose of terrorism or subversion of the democratic order provided for by the Criminal Code and special laws”
• Article 25 octies with respect to “Receiving stolen goods, money laundering and use of money, goods or benefits of unlawful origin, and self-laundering”. 

Please note that in April 2024 has been published the EU Directive No. 2024/1226 of the European Parliament and of the Council on the definition of criminal offences and penalties for the violation of union restrictive measures. The Directive establishes common rules to be implemented by the member states in order to establish the criminal liability of natural persons and legal entity who violate Union restrictive measures intentionally or with gross negligence. Domestic legislation should follow within may 2025.

Italian Criminal Code:

• Article 270 bis “Association for the purpose of terrorism, including international terrorism or subversion of the democratic order”: provides for a penalty of imprisonment ranging from seven to fifteen years;
• Article 270 quinquies 1 “Financing of conduct for terrorist purposes”: provides for a penalty of imprisonment ranging from seven to fifteen years;
• Article 648bis “Money laundering”: provides for a penalty of  imprisonment ranging from four to twelve years.

Legislative Decree 231/2001 (Administrative liability of entities)

• Article 25 quater with respect to “Crimes for the purpose of terrorism or subversion of the democratic order provided for by the Criminal Code and special laws”: provides for a pecuniary sanctions ranging from 400 to 1000 quotas*. In the event of conviction, interdiction sanctions** will follow.
• Article 25 octies with respect to “Receiving stolen goods, money laundering and use of money, goods or benefits of unlawful origin, and selflaundering”: provides for a pecuniary sanction ranging from 400 to 1000 quotas*. In the event of conviction, interdiction sanctions** will follow.
• Article 25 sexiesdecies with respect to “Custom offences”: provides for a pecuniary sanction up to 400 quotas*. In the event of conviction, interdiction sanctions** will follow.

*Pecuniary sanctions shall be imposed in tranches of not less than one hundred and not more than one thousand.  The amount of a tranche shall range from a minimum of 258.23 euros to a maximum of 1549.37 euros.

**The interdiction sanctions are:  (a) disqualification from engaging in the activity; (b) suspension or revocation of authorisations, licences or concessions functional to the commission of the offence; c) the prohibition of contracting with the public administration, except in order to obtain the performance of a public service; d) exclusion from facilitations, financing, contributions or subsidies and the possible revocation of those already granted; (e) a ban on advertising goods or services.

Criminal breaches of Financial Sanction laws are investigated by the Public Prosecutor’s Office 

Administratives Sanctions are provided for by the Sanction Decree

Unless the act constitutes a criminal offence, failure to comply with asset freezing measures or restrictions imposed by EU regulations pursuant to Article 215 TFEU is punishable by an administrative fine of between 5.000,00 Eur and 500.000,00 Eur, while failure to comply with reporting obligations is punishable by a fine of between 500,00 Eur and 25.000,00 Eur.

The Financial Security Committee (Fsc) established at the Italian Ministry of Economy and Finance (Mef) is entitle to monitor the functioning of the system for preventing and combating money laundering, the financing of terrorism (Italian Law 431/2001), the activities of countries threatening international peace and security (Italian Legislative Decree 109/2007 and Italian Legislative Decree 231/2007) and the proliferation of weapons of mass destruction (Italian Legislative Decree 90/2017), as well as to implement freezing measures ordered by the United Nations, the European Union and national entities. 

https://www.dt.mef.gov.it/en/attivita_istituzionali/prevenzione_reati_finanziari/comitato_sicurezza_finanziaria/index.html?__element=head