ITALY Law and Practice Contributed by: Enrico Maria Mancuso, Federico Bracalente, Marco Accorroni and Marco Mariotti, Herbert Smith Freehills Kramer LLP
For legal entities, a key defence is the adoption and effective implementation of adequate organisational models prior to the offence (see 1.1 Scope of Finan- cial Crime and General Criminal Law Principles ). Italian law does not generally provide broad thresh - olds (de minimis defences), though certain offences include statutory thresholds (particularly in tax crimes; see 3.5 Tax Evasion and Financial Reporting ). In some regulated sectors, compliance with specific legal obligations may exclude liability – for instance, in market manipulation under Article 185 TUF, conduct carried out for legitimate reasons and in accordance with accepted market practices is not punishable. 5.4 Whistle-Blower Protection Under Legislative Decree No 24/2023 (implementing EU Directive No 2019/1937), whistle-blowers report - ing financial crime benefit from strong legal protec - tions but no financial incentives. Key protections include: • prohibition of retaliation (eg, dismissal, demotion, discrimination) with reversal of the burden of proof; • strict confidentiality of identity; • exemption from liability for breaches of secrecy, copyright or data protection rules where the report is made in good faith; • protection extended to related persons (eg, facilita - tors, colleagues, family members); and • support measures through ANAC-accredited organisations. Anonymous reports may be admissible where the company reporting system allows for them. Statutory protections extend to anonymous whistle-blowers only where their identity is subsequently established and they have suffered retaliation.
general discretion to decline prosecution on policy or public interest grounds. The ICCP provides for the following alternative routes to resolution: • abbreviated trial – decision on the investigation file without a full evidentiary hearing (mandatory one- third sentence reduction); • plea agreement – agreed sentence approved by the court, carrying the effects of a conviction with - out implying an admission of guilt; • by the defendant; and • probation for offences carrying a penalty of up to four years – proceedings are extinguished upon successful completion of community service and remediation. For corporate defendants, a company may settle by paying a reduced fine and disgorging illicit proceeds, subject to judicial approval. 6.2 Sanctions and Sentencing Individuals face imprisonment, fines and accessory penalties, such as disqualification from public office, regulated professions or directorships in companies, and publication of the conviction judgment. Courts determine the precise sentence within the ranges prescribed by law for each offence, having regard to: • the seriousness of the offence, assessed under the criteria under Article 133 ICC, such as the nature and circumstances of the act, the means employed, the gravity of the harm or danger caused to the victim, and the intensity of criminal intent; and • the balance of any aggravating circumstances (such as recidivism, abuse of powers or violation of duties inherent in a public function or public service, commission of the offence for the pur - pose of executing or concealing another offence, or of securing its profit or impunity) and mitigating circumstances (such as damage or gain of special tenuity, full reparation of the damage before trial or participation in a restorative justice programme with a reparative outcome).
6. Resolutions, Sanctions and Remedies
6.1 Prosecution and Resolution Mechanisms The prosecutor is legally obliged to bring charges whenever there is sufficient evidence. There is no
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