ITALY Trends and Developments Contributed by: Francesco Isolabella, Luigi Isolabella and Enrico Maria Canzi, Studio Isolabella
Where the offence is committed, it is punishable by imprisonment from two to six years and a fine of between EUR25,000 to EUR250,000. However, a criminal relevance threshold applies: if the overall value of the transaction is less than EUR10,000, only an administrative penalty applies (from EUR15,000 to EUR90,000), unless the transac - tion concerns military equipment or dual-use items, in which case the criminal response remains applica - ble regardless of the value of the transaction. For the purpose of calculating this threshold, transactions of lower value are also taken into account when they are executed as part of the same economic design. Article 275-ter of the Italian Criminal Code punishes any person who intentionally breaches information obligations connected with European Union restric - tive measures. The provision applies, firstly, to the sanctioned person or the legal representative of a sanctioned entity who fails to notify the competent authorities of funds or economic resources owned, held, controlled or possessed in Italy. The same liabil - ity also applies to anyone who, by reason of his or her office or profession, becomes aware of the existence of funds or economic resources attributable to sanc - tioned persons and fails to report them to the com - petent authority (for example, the Financial Security Committee). The breach is punishable by imprisonment from six months to two years and a fine of EUR15,000 to EUR50,000. Here too, a criminal relevance threshold applies: if the funds or economic resources have a value of less than EUR10,000, only an administrative penalty of EUR5,000 to EUR45,000 applies. For the purposes of calculating that threshold, multiple low- value transactions are also considered cumulatively where they form part of the same economic design. Article 275-quater of the Italian Criminal Code prohib - its transactions, provisioning of services or the carry - ing out of activities in a manner that does not com - ply with an authorisation granted by the competent authority, where such authorisation is required by an EU restrictive measure.
The criminal penalty is imprisonment from two to five years and a fine of EUR25,000 to EUR150,000. If the activities concern funds, goods or services with a value of less than EUR10,000, only an administra - tive monetary penalty of EUR15,000 to EUR80,000 applies; for the purposes of the threshold, lower-value transactions are also taken into account where they form part of the same economic design. Article 275-quinquies of the Italian Criminal Code punishes the grossly negligent violation of European Union restrictive measures where it concerns spe - cific activities involving sensitive goods (the provision applies to the conduct referred to in Article 275-bis, paragraph 1, letter d), namely import, export, trade, sale, purchase, transfer and similar activities). The criminal penalty is imprisonment from six months to three years and a fine of EUR15,000 to EUR90,000. Article 275-sexies of the Italian Criminal Code, with specific reference to the offences described above, provides for certain aggravating circumstances, increasing the penalty by one third to one half where the same conduct is committed: • in the exercise of a professional, banking or finan - cial activity; • through the involvement of criminal associations (Article 416 of the Italian Criminal Code) or the use of falsified documentation; • through abuse of powers or breach of duties relat - ing to a public office or public service; • where the offence generates a profit of significant value; and • where the conduct is aimed at concealing, destroy - ing or eliminating documentation or evidence relat - ing to the facts covered by the preceding articles. Article 275-septies of the Italian Criminal Code intro - duces a mitigating circumstance designed to reward cooperation by the offender, with a reduction of the penalty from one third to two thirds. Articles 275-octies to 275-decies of the Italian Crimi - nal Code provide, in summary, for mandatory confis - cation, publication of the judgment and the circum - stances in which Italian jurisdiction applies.
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