In brief. Money laundering is the process by which the proceeds of criminal activity are disguised so that they appear to derive from a legitimate source. From a legal standpoint, it is a criminal offence under Article 648-bis of the Italian Criminal Code (riciclaggio) and is regulated by the EU AML directives and FATF recommendations at international level. The conduct is structured in three stages — placement, layering, integration — that describe the path of illicit funds back into the legitimate economy.

At a glance

  • Money laundering is the process of disguising the origin of illicit proceeds so they appear legitimate.
  • Under Italian law it is a criminal offence under Article 648-bis of the Italian Criminal Code, with a maximum sentence of twelve years’ imprisonment and a fine.
  • The conduct unfolds in three classic stages: placement, layering, integration.
  • Self-laundering by the perpetrator of the predicate offence is punished separately (Article 648-ter.1).
  • The EU framework includes the Anti-Money Laundering Directives (AMLD) and the AML Regulation 2024/1624 establishing a single AML rulebook and the new EU AML Authority (AMLA).
  • Italian implementation is in D.Lgs. 231/2007, regulating obliged entities, customer due diligence and suspicious transaction reporting.

Definition: what is money laundering under Italian law

Under Italian law, money laundering (riciclaggio) is defined by Article 648-bis of the Italian Criminal Code: anyone who, outside the cases of complicity in the predicate offence, replaces or transfers money, goods or other benefits proceeding from an offence (delitto), or carries out other operations in respect of them in such a way as to obstruct the identification of their criminal origin, is liable.

The offence has three structural elements:

  1. a predicate offence generating the proceeds (since Legislative Decree 195/2021, any delitto, including negligent ones, and contraventions punished with arrest exceeding one year at the maximum or six months at the minimum);
  2. an operation on the proceeds — substitution, transfer or other conduct;
  3. the capacity of the operation to obstruct identification of the criminal origin.

Money laundering must be committed by a person different from the perpetrator of the predicate offence. When the perpetrator of the predicate offence launders the proceeds themselves, the conduct is punished as self-laundering under Article 648-ter.1 of the Italian Criminal Code.

The three stages of money laundering

The international literature describes laundering as a three-stage process. Although the stages can overlap and not all are present in every scheme, the model captures the typical flow.

Stage 1 — Placement. The illicit funds enter the financial system. Methods include cash deposits, purchase of high-value goods, structured payments below reporting thresholds (smurfing), use of cash-intensive businesses (restaurants, car washes), purchase of crypto via OTC desks.

Stage 2 — Layering. Multiple transactions designed to obscure the trail. Methods include cross-border transfers through shell companies, conversion into different assets, use of trusts and complex corporate structures, layering through correspondent banking, use of crypto-to-crypto exchanges and mixers.

Stage 3 — Integration. The “cleaned” funds re-enter the legitimate economy as apparently lawful wealth: real estate purchases, business investments, luxury goods, professional service fees that look ordinary on the surface.

  • Article 648-bis of the Italian Criminal Code — money laundering (riciclaggio).
  • Article 648-ter — use of money, goods or benefits of unlawful origin.
  • Article 648-ter.1 — self-laundering (auto-riciclaggio).
  • Article 648-quater — confiscation of equivalent value.
  • D.Lgs. 231/2007 — Italian AML rules: customer due diligence, suspicious transaction reporting, obliged entities (banks, financial institutions, professionals, gaming operators, crypto-asset service providers).
  • D.Lgs. 231/2001 — corporate criminal liability for money laundering (Article 25-octies).
  • Law 197/1991 — first Italian preventive AML legislation (cash limits, customer identification), now largely replaced by D.Lgs. 231/2007.
  • Constitution of the Italian Republic, Article 25 — principle of legality.

International and EU framework

  • EU Anti-Money Laundering Directives (4AMLD, 5AMLD, the criminal-law Directive 2018/1673 and the new Directive 2024/1640) — set the framework for EU member states.
  • Regulation EU 2024/1624 — single AML rulebook, applicable from 10 July 2027.
  • Regulation EU 2024/1620 — establishing the EU AML Authority (AMLA), based in Frankfurt.
  • Financial Action Task Force (FATF) — 40 Recommendations, country mutual evaluations, public statements on high-risk jurisdictions.
  • United Nations Convention against Transnational Organised Crime (Palermo Convention, 2000).
  • United Nations Convention against Corruption (Merida Convention, 2003).
  • Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (Warsaw Convention, 2005).

Self-laundering: the Italian distinctive feature

Italian law sharply distinguishes between laundering by a third party (riciclaggio, Article 648-bis) and self-laundering (autoriciclaggio, Article 648-ter.1). The latter was introduced in 2014 (Law 186/2014) to fill a gap previously exploited: anyone who launders proceeds from an offence they themselves committed is now liable, even if the predicate offence is unprosecuted.

The self-laundering offence requires that the perpetrator carry out economic, financial, entrepreneurial or speculative activities with the proceeds, in a way that hinders identification of the criminal origin. Mere use or consumption of the proceeds for personal purposes does not constitute self-laundering.

Corporate liability under D.Lgs. 231/2001

Italian companies and other entities can face direct criminal liability for money laundering committed in their interest or to their advantage by senior managers or employees (Article 25-octies of D.Lgs. 231/2001). The sanctions include monetary fines, disqualification, confiscation of the profit and publication of the judgment. Effective compliance programmes (modelli 231) function as a defence if adopted before the offence and effectively implemented.

FAQ

Is money laundering a single offence under Italian law? No. Italian law distinguishes between laundering by a third party (Article 648-bis), use of unlawful proceeds (Article 648-ter), and self-laundering (Article 648-ter.1).

Is intent required? Yes. The offence requires intent (dolo): awareness of the unlawful origin of the funds and the will to carry out the operation (case law also accepts dolo eventuale). No specific purpose is required, but the operation must be capable of obstructing identification of the origin.

Are crypto assets covered? Yes. Italian implementation of EU AML rules (D.Lgs. 90/2017 and subsequent updates) extends customer due diligence and reporting duties to crypto-asset service providers, which must now be authorised under the MiCA Regulation (EU) 2023/1114.

What is the maximum sentence for laundering in Italy? Under art. 648-bis c.p., four to twelve years’ imprisonment and a fine from EUR 5,000 to EUR 25,000; two to six years and a fine from EUR 2,500 to EUR 12,500 where the proceeds derive from a contravention (D.Lgs. 195/2021). The penalty is increased if the offence is committed in the exercise of a professional activity and reduced if the predicate offence carries a maximum penalty below five years.

Can a company be prosecuted for laundering? Yes, under D.Lgs. 231/2001, Article 25-octies. Sanctions include fines, disqualification and confiscation of profits.

When to contact the firm

If you are under investigation for money laundering in Italy, or you are exposed to AML claims through cross-border transactions, contact the firm. The complexity of the framework and the cross-jurisdictional nature of most cases require specialist counsel from the earliest stage.

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