Posted on by Juan Carlavilla

Italy and its definition of PEP

Italy and its definition of PEP. Photo by Freepik.

Just like its European counterparts such as Sweden, Portugal, or Spain; Italy also defines its concept of politically exposed person in its prevention regulations. Like its European peers, its provisions are influenced by the regulatory framework set by the FATF and the legislative developments brought forward by the European Union through its Directives.

The Italian regulation defines PEPs in the first article of the Legislative Decree 21 November 2007, No. 231. This law consolidates the transpositions made by the Italian State and serves as a key pillar in the regulations for anti-money laundering and counter-terrorism financing. Additionally, this article also outlines the definitions for the family members and close associates of PEPs.

Under Italian regulation, family members of politically exposed persons are understood as “parents, spouse, cohabiting partner or equivalent, children, and the spouse or equivalent of the children.”
Close associates are defined as:
– Individuals who share beneficial ownership of a legal entity, trust, or similar arrangement with a PEP.
– Individuals who are the sole beneficial owner of a legal entity established to benefit a PEP.

It is within the first article of the Italian regulation that the definition of politically exposed persons is established. Furthermore, Italian law requires that politically exposed persons be subject to enhanced due diligence measures. Therefore, it is crucial to accurately define and identify this type of individual.

List of Italian PEPs

The public offices that hold the status of PEP according to Italian regulations are:

  1. President, Prime Minister, Minister, Deputy Minister, Secretary of State, President of the Regional Council, Regional Councillor, Mayor of a provincial capital or metropolitan city, Mayor of a municipality with a population of at least 15,000 inhabitants, and equivalent positions in foreign countries;
  2. Member of Parliament, Senator, Regional Councillor, and equivalent positions in foreign countries;
  3. Member of the central governing bodies of political parties;
  4. Judge of the Constitutional Court, the Court of Cassation, or the Court of Auditors, member of the Council of State, and other members of the Administrative Justice Council of the Sicily Region, and equivalent positions in foreign countries;
  5. Member of the governing bodies of central banks and independent authorities;
  6. Ambassador, chargé d’affaires, or equivalent positions in foreign countries, senior officials in the armed forces, or equivalent positions in foreign countries;
  7. Member of the administrative, management, or supervisory bodies of companies directly or indirectly controlled by the Italian State or by a foreign State, or owned entirely or in majority by the regions, municipalities, or cities with a population of no less than 15,000 inhabitants;
  8. Chief Executive Officer of a health authority or hospital, university hospital, or other national health service bodies;
  • Director, Deputy Director, and member of the governing body or entity performing equivalent functions in international organizations;

Below, we detail the main sources used at Pibisi to compile the list of Italian PEPs:

I am an obliged entity and looking for an AML tool.

Great! You’ve come to the right place at the right time. Request a demo with the Pibisi team and tell us what you need with no obligation.

I’m not sure if I’m an Obliged Entity…

No problem, it’s a very common question. Take our simple questionnaire and find out NOW.

If you want to stay updated with new articles, subscribe to our newsletter if you haven’t done so already.

And if you’d like to suggest a topic you’d like us to write an article about, or you simply want to get in touch with us, you can do so via our contact form.

Photo by Álvaro Serrano

Leave a Reply

Your email address will not be published. Required fields are marked *

4 × one =