New IVASS order on AML

On 4 June 2024, the Italian Insurance Regulatory Authority (“IVASS”) published Order no. 144/2024 (the “Order”), amending and implementing IVASS Regulation no. 44/2019 (“Regulation 44”) in matter of anti-money laundering (“AML”) and counter terrorist financing (“CTF”).

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As you might be aware, on June 2022, EBA (the European Banking Authority) published a set of Guidelines giving indications on the role, tasks and responsibilities of the AML/CTF compliance officer and the management body, as well as information on the modalities of outsourcing methods, policies, controls and procedures at a group level.

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IVASS underlines that the provision contained in Regulation 44 are already compliant with EBA’s Guidelines, however, in order to implement completely the Guidelines in Italy, it was necessary to slightly integrate Regulation 44 with the Order.

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The Order introduces a definition of “body with management function”, which is the body which replaces the top management (“alta direzione”, in Italian), and indicates the role of this new body.

Furthermore, the definitions of “administrative body”, “guidelines” and “corporate governance system” are modified.

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The Order introduces as well the following important novelties:

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1.???? Director responsible for anti-money laundering.

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All credit institutions and financial institutions subject to anti-money laundering regulations are required to identify a member of the management body who will be responsible for the overall compliance with the regulations on the prevention of money laundering and terrorism financing.

Such Director will be responsible for ensuring that the management body is fully aware of the money laundering and terrorist financing risks to which the company is exposed, as well as for providing the necessary guidance to the relevant corporate functions.

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The appointment of the Director responsible for anti-money laundering must be made no later than the first renewal of the corporate bodies following the publication of the Order and, in any case, by 30 April 2026.

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2.???? AML function

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Regulation 44 is already compliant with EBA’s Guidelines, however it is necessary to modify several provision to regulate the relations between the AML function and the newly introduced AML Director.

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The Order also introduces the obligation to consult the AML function where the starting or the continuation of a relationship with a high-risk client requires by law the approval of a top manager.

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3.???? Outsourcing

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Outsourcing is allowed only for the functions/obligation of the AML function, while it is not allowed to outsource the responsibilities of the AML function.

Furthermore, in any case, the holder of the AML function shall always be appointed, and such person is required to monitor and control all the outsourced activities.

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4.???? Groups

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At a group level, the Order requires:

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a)???? the appointment of a director responsible for the group’s AML;

b)???? the appointment of the holder of the AML function for the group. Such person will be responsible, among others, for the coordination between all the AML functions of each company of the group, for the drafting of a self-assessment of the risks at a group level, and for the development of procedures, standards and methodologies at a group level.

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The Order will enter into force the day after its publication in the Italian Official Gazette.

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Please note that, at the moment, the Order is only available in Italian and it can be consulted at the following link: https://www.ivass.it/normativa/nazionale/secondaria-ivass/normativi-provv/2024/provv-144/Provvedimento_144_2024.PDF