In brief. Money laundering is the process by which proceeds of crime are concealed and reintroduced into the legitimate economy, so that their illicit origin can no longer be traced. Under Italian criminal law it is punished by articles 648-bis, 648-ter and 648-ter.1 of the Criminal Code. International cooperation, anti-money-laundering checks and prevention obligations are governed by Legislative Decree 231/2007, implementing EU directives. Our firm assists individuals and companies facing investigations or compliance obligations.

Key takeaways

  • Money laundering consists in concealing, transferring or using assets derived from a crime to disguise their criminal origin.
  • Italian law punishes the offence under art. 648-bis Italian Criminal Code (laundering), art. 648-ter Italian Criminal Code (use of proceeds of crime) and art. 648-ter.1 Italian Criminal Code (self-laundering).
  • Penalties under art. 648-bis range from 4 to 12 years’ imprisonment and a fine from EUR 5,000 to EUR 25,000, alongside confiscation of assets (art. 648-quater c.p.); 2 to 6 years and a fine from EUR 2,500 to EUR 12,500 where the proceeds derive from a contravention (Legislative Decree 195/2021).
  • Companies can be held administratively liable under Legislative Decree 231/2001 for money laundering committed in their interest.
  • Anti-money-laundering checks (KYC, AML) are mandatory for banks, financial intermediaries, lawyers, accountants and other obligated entities under Legislative Decree 231/2007.

Definition of money laundering

Money laundering is the criminal conduct through which a person, with the purpose of hiding their origin, substitutes, transfers or carries out any other operation upon money, goods or other utilities deriving from a crime (since Legislative Decree 195/2021, in force from 15 December 2021, any delitto, including negligent ones, and contraventions punished with arrest exceeding one year at the maximum or six months at the minimum). The aim is to prevent the identification of the illicit source of the assets and to allow their reintroduction into the lawful financial system.

In international practice, the process is usually described in three phases — placement (introduction of dirty money into the financial system), layering (multiple transactions designed to break the audit trail) and integration (reintroduction of the assets as apparently legitimate). Italian and EU law translates these phases into specific criminal offences and into a wide set of administrative obligations on financial and professional operators.

  • Art. 648-bis Italian Criminal Code — money laundering (riciclaggio): substitution or transfer of property knowing it derives from a crime or from a qualifying contravention.
  • Art. 648-ter Italian Criminal Code — use of proceeds of crime in economic or financial activities.
  • Art. 648-ter.1 Italian Criminal Code — self-laundering (autoriciclaggio), introduced by Law 186/2014.
  • Art. 648 Italian Criminal Code — receiving stolen property, distinct from but related to money laundering.
  • Legislative Decree 231/2007 — AML framework implementing EU directives (4th and 5th AML Directives); the so-called 6AMLD, i.e. the criminal-law Directive (EU) 2018/1673, was transposed into the Criminal Code by Legislative Decree 195/2021. The 2024 AML package (Reg. (EU) 2024/1624, Dir. (EU) 2024/1640, AMLA Reg. (EU) 2024/1620) will progressively apply, with the single rulebook from 10 July 2027.
  • Legislative Decree 231/2001 — administrative liability of legal entities for the offences committed in their interest, including money laundering offences (art. 25-octies).
  • Penalties under art. 648-bis c.p.: imprisonment from 4 to 12 years and a fine from EUR 5,000 to EUR 25,000, increased when committed in the exercise of a professional activity and reduced when the predicate offence carries a maximum penalty below five years.

What does money laundering mean in practice?

In practice, money laundering covers a wide spectrum of conducts. They share one feature: the asset that is being moved has criminal origin, and the person who handles it knows that fact (Italian case law also accepts dolo eventuale, i.e. knowingly accepting the concrete risk; mere negligence is not enough).

Examples include using cash from drug trafficking to buy real estate through nominees; routing funds from corruption through shell companies in low-disclosure jurisdictions; depositing proceeds of fraud into a trading account so as to receive a “clean” wire transfer; or accepting payment in cryptocurrency for legal services from a client who derives those crypto assets from a crime.

The offence does not require that the predicate crime be definitively ascertained by a court: it is enough that its existence be inferable on the basis of the evidence. This is one of the features that makes money laundering investigations particularly intrusive and complex to defend.

Money laundering offences in Italy

Italian criminal law distinguishes three main offences in this area, plus the close-related crime of receiving stolen property.

Art. 648-bis c.p. — Riciclaggio. This is the classic offence: substituting, transferring or carrying out other operations on property derived from a crime (or, since Legislative Decree 195/2021, from a qualifying contravention), so as to hinder the identification of its origin. The offender must be a person different from the one who committed the predicate crime.

Art. 648-ter c.p. — Impiego di denaro, beni o utilità di provenienza illecita. Using funds of criminal origin in economic or financial activities. The offence applies, again, to a person different from the one who committed the source offence.

Art. 648-ter.1 c.p. — Autoriciclaggio. Introduced by Law 186/2014, this provision finally criminalised conduct of the same author of the source crime who employs the proceeds in economic, financial, entrepreneurial or speculative activities so as to hinder the identification of their origin. Mere personal use is not punishable.

Art. 648 c.p. — Ricettazione. Receiving, buying or concealing things derived from a crime. It is distinct from money laundering, which requires an additional cleaning purpose, but the two offences often coexist in the same investigation.

What does anti money laundering (AML) mean?

The expression anti money laundering (AML) refers to the set of prevention tools that financial institutions, professionals and other obligated entities must adopt to prevent the use of the legitimate system for laundering purposes. In Italy these obligations are set out in Legislative Decree 231/2007, as updated by the transposition of the EU AML Directives.

Obligated entities — banks, financial intermediaries, payment institutions, e-money issuers, lawyers, notaries, accountants, certain real estate operators — must adopt customer due diligence measures (anti money laundering checks), retain identification records, monitor transactions and report suspicious transactions (SAR) to the UIF (Italian Financial Intelligence Unit).

For a focused overview see money laundering meaning, anti money laundering and the specific procedures of anti money laundering checks. The complete reference is in the complete guide to money laundering in Italy. For the corporate and tax-driven angle of these investigations see the white-collar crime overview.

Cases

(Illustrative examples of typical situations: they do not refer to specific proceedings or to clients of the firm.)

Case 1 — Cross-border investigation involving a non-resident client. A foreign client of a Swiss private bank is investigated in Italy for self-laundering: the funds invested in an Italian start-up are alleged to derive from tax evasion. The defence strategy works on two levels: contesting the existence of the predicate crime under Italian tax law, and contesting the concrete hindrance to traceability — a constitutive element of art. 648-ter.1 c.p. Independent legal advice in the specific case is necessary.

Case 2 — Compliance failure of an obligated entity. A medium-sized payment institution receives a UIF inspection that finds gaps in the customer due diligence procedure. The company faces administrative sanctions under Legislative Decree 231/2007 and a possible corporate liability investigation under Legislative Decree 231/2001 if a specific predicate crime is identified. In such a situation the defence can work on remediation, internal investigations and dialogue with the supervisory authorities.

FAQ

What is the difference between money laundering and self-laundering? Money laundering (art. 648-bis c.p.) applies to a person different from the one who committed the predicate crime. Self-laundering (art. 648-ter.1 c.p.), introduced in 2014, punishes the same author of the predicate crime when they reinvest the proceeds in economic, financial or entrepreneurial activities so as to obstruct identification of the origin. Pure personal consumption is not enough to trigger self-laundering.

Is tax evasion a predicate crime for money laundering? Yes. Italian tax offences under Legislative Decree 74/2000 — such as fraudulent declaration or omitted declaration — are intentional crimes and, once the relevant thresholds are exceeded, can constitute the source of dirty funds for the purpose of art. 648-bis or 648-ter.1 c.p. The interplay with tax-driven investigations is a common feature of Italian financial crime cases.

What are AML obligations for lawyers? Lawyers and other professionals listed in Legislative Decree 231/2007 must perform customer due diligence, monitor transactions and, where suspicious indicators occur, file a SAR to the UIF. The professional privilege limits but does not exclude these obligations: pure judicial defence activity is generally outside the AML perimeter, while non-litigation services on transactions and assets fall fully within it.

Can a company be liable for money laundering? Yes, under art. 25-octies of Legislative Decree 231/2001. If the offence is committed in the company’s interest or to its advantage by a top manager or a subordinate, the legal entity faces administrative liability with sanctions ranging from fines to interdictory measures and confiscation. A compliant 231 model is the main defence.

What is a suspicious activity report (SAR)? A SAR is the report that obligated entities must send to the UIF when they have reasonable grounds to suspect that funds, regardless of the amount, derive from criminal activity or are intended for money laundering or terrorism financing. The SAR is confidential and the reporting entity is protected from civil and criminal claims for the report itself.

Contact the firm

For corporate or individual defence in cross-border money laundering investigations, our team provides a confidential consultation within 24 hours.

ILA — International Lawyers Associates — assists corporations, financial institutions and individuals in complex cases of money laundering, self-laundering and AML non-compliance, with a focus on cross-border profiles and parallel proceedings.

About the Firm

ILA — International Lawyers Associates is an Italian law firm focused on international criminal law and white-collar crime. Offices in Naples, Milan and Rome. The firm is directed by Avv. Alexandro Tirelli and operates in Italian, English and Spanish.