Mafia, money-laundering and the battle against criminal capital: the Italian case
| Date | 08 May 2018 |
| Published date | 08 May 2018 |
| Pages | 124-133 |
| DOI | https://doi.org/10.1108/JMLC-02-2017-0009 |
| Author | Yara El Siwi |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Mafia, money-laundering and the
battle against criminal capital: the
Italian case
Yara El Siwi
University of Cambridge, Cambridge, UK
Abstract
Purpose –This paper aims to look at the case of Italy, which clearly stands out in its relationship with
organised crime. The recognition that money is the “lifeblood”ofOC has resulted in the implementation of
what we can refer to as the anti-money laundering (AML) regime, which backs the systematic targeting of
mafia assets and the application of severe obstacles to the concealment of dirty money through increased
financial surveillance.This paper discusses the financialisation of counter-mafia strategies,with the purpose
of questioningthe extent to which this system has been delivering what it promised.
Design/methodology/approach –The paper is divided into three chapters. The first chapterlooks at
the relationship between Italian mafia and dirty money. The second chapter discusses the rationale and
pillars of the AML regime. Finally, the last sectionexamines and discusses recent evidence of the outcome of
AML policies, by looking at figures as reported by relevant entities, such as the Financial Intelligence Unit
(FIU), Europol,the Italian Ministry of Interior and the Direzione InvestigativaAnti-Mafia (DIA).
Findings –Evidencesuggests that financial surveillance, the first pillar of the AML regime, is much costlier
than it is beneficial to society. Reporting of suspicions has rocketed in the past years, bringing very little
change to yearly ML convictions, and being only marginally helpful in mafia-related investigations,
confiscations and arrests. The confiscation of assets from mafia members, i.e. the second pillar of the AML
regime, has proven to be effective in gaining control over largesums and goods. However, more research is
needed aroundthe question of confiscated asset-management and desirablere-investment opportunities.
Originality/value –As the AML regime gains in prominenceinternationally, it is of great value to assess
its achievements so far. This is especially true of a country like Italy, which suffers from a long-standing
mafia dominance. This paper representsa modest initial inquiry, which will hopefully be complemented by
future research to come to an in-depth understanding of the value and limitations of an AML regime in
fighting OC.
Keywords Organized crime, Mafia, Money laundering, Italy
Paper type Research paper
This article will be looking at the case of Italy, which clearly stands out in its relationship
with organised crime. Despite being an advanced capitalist country and Europe’s forth
largest economy, Italysuffers from a long-standing mafia dominance, which exacerbates the
parallel problems of corruption, violence and underdevelopment in the country’s southern
regions (the “Mezzogiorno”). Admittedly, the price of mafia activities and their infiltration
into the legitimate economy and political realm are extremely difficult to calculate.
Nonetheless, even the moreoptimistic estimates point at the severity of the problem. While it
is unsurprising that Italian authoritiesinvest substantial efforts and resources into devising
and implementing strategies to counter the issue at a regional and national level, it is
remarkable that in the past three decades, these strategies have become increasingly
Tables can be made available from the author on request.
JMLC
21,2
124
Journalof Money Laundering
Control
Vol.21 No. 2, 2018
pp. 124-133
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-02-2017-0009
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
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