Identifier
Created
Classification
Origin
09ROME1349
2009-12-10 08:44:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Rome
Cable title:
BANKS CLAIM ITALIAN TAX AMNESTY CONSISTENT WITH
how-toVZCZCXRO2264 RR RUEHFL RUEHNP DE RUEHRO #1349 3440844 ZNR UUUUU ZZH R 100844Z DEC 09 FM AMEMBASSY ROME TO RUEHC/SECSTATE WASHDC 2987 RUEATRS/DEPT OF TREASURY WASHDC INFO RUEHFL/AMCONSUL FLORENCE 3918 RUEHMIL/AMCONSUL MILAN 0356 RUEHNP/AMCONSUL NAPLES 4137
UNCLAS ROME 001349
SENSITIVE
SIPDIS
TREASURY FOR INTERNATIONAL AFFAIRS N DONNELLS AND FINCEN
E.O. 12958: N/A
TAGS: EFIN SNAR KCRM IT
SUBJECT: BANKS CLAIM ITALIAN TAX AMNESTY CONSISTENT WITH
ANTI-MONEY LAUNDERING RULES
UNCLAS ROME 001349
SENSITIVE
SIPDIS
TREASURY FOR INTERNATIONAL AFFAIRS N DONNELLS AND FINCEN
E.O. 12958: N/A
TAGS: EFIN SNAR KCRM IT
SUBJECT: BANKS CLAIM ITALIAN TAX AMNESTY CONSISTENT WITH
ANTI-MONEY LAUNDERING RULES
1. (U) Italian Banking Association officials have indicated
to Post that Italian banks remain beholden to
know-your-client and suspicious transaction reporting
obligations when processing transactions pursuant to Italy's
current tax amnesty. End Summary
2. (U) Econoffs met on November 25 Italian with banking
association (ABI) officials who explained the guidance they
have received from the Italian government with respect to
anti-money laundering obligations applicable to bank
transactions triggered by Italy's tax amnesty. The officials
said the Italian government "de-penalized" a number of
money-laundering predicate crimes, such as tax evasion and
accounting fraud, as part of the tax amnesty it implemented
in October 2009. (Note: When the GOI was designing its tax
amnesty it asked Post for information on the USG's own
capital repatriation/amnesty provision a couple of years
ago.)
3. (U) According to the ABI officials, the GOI on October 12
issued a clarification on how to treat tax amnesty-related
transactions for purposes of compliance with anti-money
laundering laws. Banks are required still to file suspicious
transaction reports as per the ordinary criteria. Cash
deposits, or transactions by unknown or new bank customers
remain subject to AML procedures, whether the party to the
transaction claims a benefit under the tax amnesty or not.
The ABI officials noted that most amnesty transactions
involve a foreign financial institution counterparty. The
Italian bank account owner, moreover, needs documentation of
such transactions from their Italian bank in order to qualify
for benefits under the tax amnesty.
4. (U) The ABI officials explained that exemption of certain
crimes was an essential component of the amnesty, without
which the government could not hope to attract amnesty
adherents. The purpose of the amnesty is to identify
Italians' hidden assets abroad and incorporate them into tax
rolls, whether the assets actually return to Italy or remain
abroad (within the EU). With public debt at 115% of GDP and
an already heavy tax burden on ordinary Italians, the
government is looking for every conceivable alternative
source of public revenue.
THORNE
SENSITIVE
SIPDIS
TREASURY FOR INTERNATIONAL AFFAIRS N DONNELLS AND FINCEN
E.O. 12958: N/A
TAGS: EFIN SNAR KCRM IT
SUBJECT: BANKS CLAIM ITALIAN TAX AMNESTY CONSISTENT WITH
ANTI-MONEY LAUNDERING RULES
1. (U) Italian Banking Association officials have indicated
to Post that Italian banks remain beholden to
know-your-client and suspicious transaction reporting
obligations when processing transactions pursuant to Italy's
current tax amnesty. End Summary
2. (U) Econoffs met on November 25 Italian with banking
association (ABI) officials who explained the guidance they
have received from the Italian government with respect to
anti-money laundering obligations applicable to bank
transactions triggered by Italy's tax amnesty. The officials
said the Italian government "de-penalized" a number of
money-laundering predicate crimes, such as tax evasion and
accounting fraud, as part of the tax amnesty it implemented
in October 2009. (Note: When the GOI was designing its tax
amnesty it asked Post for information on the USG's own
capital repatriation/amnesty provision a couple of years
ago.)
3. (U) According to the ABI officials, the GOI on October 12
issued a clarification on how to treat tax amnesty-related
transactions for purposes of compliance with anti-money
laundering laws. Banks are required still to file suspicious
transaction reports as per the ordinary criteria. Cash
deposits, or transactions by unknown or new bank customers
remain subject to AML procedures, whether the party to the
transaction claims a benefit under the tax amnesty or not.
The ABI officials noted that most amnesty transactions
involve a foreign financial institution counterparty. The
Italian bank account owner, moreover, needs documentation of
such transactions from their Italian bank in order to qualify
for benefits under the tax amnesty.
4. (U) The ABI officials explained that exemption of certain
crimes was an essential component of the amnesty, without
which the government could not hope to attract amnesty
adherents. The purpose of the amnesty is to identify
Italians' hidden assets abroad and incorporate them into tax
rolls, whether the assets actually return to Italy or remain
abroad (within the EU). With public debt at 115% of GDP and
an already heavy tax burden on ordinary Italians, the
government is looking for every conceivable alternative
source of public revenue.
THORNE