Italian Revenue Agency and Guardia di Finanza Target Self-laundering
Italian authorities are intensifying efforts too combat self-laundering, a sophisticated form of financial crime where individuals attempt to legitimize illicit gains. The Revenue Agency and the Guardia di Finanza are working in tandem to detect and prosecute these offenses, which carry critically important penalties.
The Role of the Revenue Agency
The Revenue Agency, a public institution operating under the Ministry of Economy and Finance, is central to italy’s tax system. Its responsibilities include:
- Managing the country’s tax system.
- Collecting taxes,verifying tax obligations,and combating evasion.
- Issuing circulars and interpretative resolutions on tax legislation.
- Managing tax returns and other tax obligations.
- Conducting checks and investigations to verify the correctness of declared operations.
- Managing tax disputes.
To effectively perform these functions, the revenue Agency utilizes a network of territorial structures across Italy, aiming to ensure a fair and efficient tax system
that funds essential public services.
Collaboration wiht Guardia di Finanza
The Revenue Agency collaborates closely with the Guardia di Finanza to combat tax evasion and fraud.This partnership involves:
- Exchanging details.
- Jointly executing investigations and controls.
- Sharing specific skills.
The Guardia di Finanza provides the operating support necessary to ascertain violations of a tax criminal nature.
Understanding Self-Laundering
Self-laundering involves using, replacing, or transferring assets derived from a crime committed by the same individual who then attempts to legitimize those assets. In essence, criminals use illegal proceeds to carry out further economic activities or financial, trying to lose the traceability of the illegal origin of the funds.
Did You Know?
Self-laundering differs from customary money laundering because the perpetrator of the original crime and the laundering activity are the same person.
Methods of self-laundering can include:
- purchasing properties.
- Creating fictitious companies.
- Performing complex financial operations.
Penalties for Self-Laundering
If the Guardia di Finanza identifies self-laundering, criminal penalties apply. Article 648-ter of the Criminal Code stipulates:
- Imprisonment from two to eight years.
- A fine from 5,000 to 25,000 euros.
pro Tip
The penalty increases if the crime is committed in the course of a professional activity. Conversely, the penalty may be reduced if the underlying crime carries a maximum imprisonment term of one to five years.
Recent Cases and crackdowns
Italian authorities have been actively pursuing cases of financial crime, including VAT fraud and money laundering. Recent examples include:
- Eleven arrests and the seizure of €25 million in a VAT fraud scheme involving electronic goods [1]. This case involved self-money laundering, where the fraudulent proceeds were transferred through multiple companies to obscure their origin.
- An entrepreneur charged with €41.8 million in VAT fraud and misappropriation of €6.7 million [2]. The judge issued a freezing order for €41.8 million,representing the alleged profits from the illicit activities.
- The arrest of 43 people and the seizure of assets worth €520 million in a crackdown on an alleged tax fraud scheme [3]. The seized assets included luxury cars and boats.
FAQ: Self-Laundering in Italy
- What is self-laundering?
- Using illegal proceeds from one’s own crime to fund further activities.
- Who investigates self-laundering?
- The Revenue Agency and the Guardia di Finanza.
- What are the penalties?
- Imprisonment from two to eight years and fines from 5,000 to 25,000 euros.
