Order No. 11440 of 2024: Reporting Obligation in Suspicious Financial Transactions

In the Italian regulatory landscape, Order No. 11440 of April 29, 2024, issued by the Court of Cassation, provides important clarifications regarding the obligation to report financial transactions potentially linked to money laundering offenses. This ruling, involving the head of a branch and equivalent subjects, is part of a context of increasing attention to anti-money laundering regulations, in line with European directives and national legislation.

Regulatory Context and the Ruling

The Court, presided over by L. O. and with A. C. as rapporteur, examined a case where an operator was held liable for failing to report suspicious financial transactions. According to the

“Head of branch and equivalent subjects – Obligation to report financial transactions deemed to be the proceeds of money laundering – Parameters. In the context of anti-money laundering regulations, the reporting obligation, incumbent upon the head of a branch, office, or other operational point, for transactions that may originate from one of the offenses referred to in art. 648-bis of the Italian Criminal Code, established by art. 3, paragraphs 1 and 2, of Legislative Decree No. 143 of 1991, is not subject to the highlighting by preliminary investigations of the operator and intermediaries of a circumstantial framework of money laundering, nor to the exclusion, based on their personal conviction, of the transactions' unrelatedness to a criminal act, but to an objective judgment on their suitability to circumvent provisions aimed at preventing and punishing money laundering activities.”

The Court established that liability does not depend on the presence of preliminary evidence of a crime, but on an objective analysis of the transactions.

Implications of the Decision

This decision has several significant implications for financial sector operators:

• Reporting Obligation: Operators must report any transaction that may be considered suspicious, even in the absence of precise indications of money laundering.
• Objective Judgment: The assessment must be based on objective criteria, rather than personal beliefs, reducing the risk of omissions due to subjective evaluations.
• Strengthening Compliance: Financial institutions will need to implement more rigorous internal procedures to ensure timely reporting of suspicious transactions.

Conclusions

In conclusion, Order No. 11440 of 2024 represents an important step in the fight against money laundering, emphasizing the need for a proactive and objective approach by financial operators. This ruling not only clarifies the responsibilities of operators but also promotes greater transparency and accountability in the financial sector, contributing to a fairer and more secure system.