Finance
Italy Should Do More to Tackle Money Laundering, Says Global Watchdog
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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The FATF’s February 2026 mutual evaluation of Italy found progress in complex terrorist‑financing investigations but flagged gaps in pursuing low‑level cases and weak sanctions. Italy must implement a roadmap over three years, or risk more public scrutiny.
FATF Says Italy Must Step Up Fight Against Money Laundering and Terrorist Financing
FATF's Assessment of Italy's Efforts
By Sudip Kar-Gupta
PARIS, April 23 (Reuters) - Italy should do more to combat money laundering and prosecute those involved in terrorist financing, a global anti-money-laundering watchdog said on Thursday.
Italy, the euro zone's third-largest economy, has stepped up action in recent years against international crime gangs and suspected terrorism financing.
Findings from FATF's Visit
But the Financial Action Task Force (FATF) said that after a visit to Italy between June and July last year, it found authorities could still impose tougher sanctions to deter money-laundering and bring more criminal cases.
Analysis of Terrorist Financing Investigations
"The assessment found that sophisticated analysis of terrorist financing-related suspicious transaction reports by the Unità di Informazione Finanziaria and Guardia di Finanza resulted in a significant number of complex stand-alone terrorist financing investigations being pursued over the evaluation period," said the Paris-based FATF.
Challenges in Prosecuting Simple Cases
"However, simple terrorist financing cases involving those who raise or use their own funds or move low levels of money to support terrorist activity are not actively pursued with a goal to prosecution," it added.
Recommendations and Next Steps
The FATF said it had set out steps for Italy to take over the next three years, including giving better guidance on money laundering risks to businesses outside the traditional financial sector.
It added that if Italy, like other countries monitored by the FATF, failed to address the issues, the watchdog could raise its concerns more publicly.
(Reporting by Sudip Kar-Gupta. Editing by Mark Potter)
Key Takeaways
- •FATF’s mutual evaluation under new methodology adopted in Feb 2026 includes time‑bound roadmap for Italy to strengthen AML/CFT effectiveness (fatf-gafi.org)
- •Italy’s UIF saw a notable rise in overall suspicious reports and in those tied to terrorist financing—indicating growing threats from crypto and cash (zigram.tech)
- •Authorities like UIF and Guardia di Finanza conducting solid analysis on complex cases, but FATF finds simple, low‑value terrorist financing cases are not prosecuted (amministrazionetrasparente.gdf.gov.it)
References
Frequently Asked Questions about Italy should do more to tackle money laundering, says global watchdog
1What did the FATF report say about Italy's anti-money laundering efforts?
The FATF report stated that while Italy has made progress, it still needs to impose tougher sanctions and bring more criminal cases to deter money laundering.
2What are the recommendations for Italy from the FATF?
The FATF recommends Italy give better guidance on money laundering risks to businesses outside the traditional financial sector and to actively prosecute simple terrorist financing cases.
3What actions has Italy taken recently against financial crimes?
Italy has stepped up action against international crime gangs and suspected terrorism financing in recent years, resulting in several complex investigations.
4What could happen if Italy fails to address the FATF's concerns?
If Italy fails to address the FATF's recommendations, the watchdog may raise its concerns more publicly.
5Which organizations in Italy analyze suspicious financial transactions?
The Unità di Informazione Finanziaria and Guardia di Finanza are responsible for analyzing suspicious financial transactions in Italy.
