Article 3 min

Digital Identity Verification in Italy

AML, KYC and Digital Identity in Italy

April 15, 2024  

As a European Union member, Italy has strict regulations around personal data, identity verification and digital services.

Organizations operating in the country can still streamline customer onboarding, ensure compliance and achieve strong match rate performance by leveraging local expertise and state-of-the-art technology.

Examples of AML and KYC in Italy

The Italian anti-money laundering (AML) law outlines the requirements for Know Your Customer (KYC) and AML compliance. The act requires obliged entities to implement customer due diligence, including identity verification, to prevent money laundering and terrorist financing.

Italy’s Consolidated Law on Banking and Consolidated Law on Finance regulate banks and other financial services companies.

Italy recommends a risk-based approach to AML and KYC. The country allows organizations to remotely acquire and verify identity data. Video identification also is acceptable.

Snapshot of Identity Verification in Italy

The Italian government has implemented a public digital identity system, SPID, which allows people to authenticate themselves and access government services. More than 70% of Italian adults have used SPID, primarily for public services.

Italy also provides an electronic identity card (CIE) as an optional personal identification document with an embedded microchip that stores information such as name, surname, place of birth, birthdate and biometrics.

Italian citizens also have a social insurance number they use for official purposes in health care systems or legal contracts. 

A View of Italy’s Business Verification Landscape

New companies in Italy incorporate online with the Italian Business Register. Business structures include:

  • Sole proprietorship
  • Limited liability company
  • Simplified limited liability company
  • Company limited by shares
  • Flexible vehicle, in which partners choose the amount of risk to carry

Italy also assigns business identifiers, such as a company registration number and tax code.

Italy has a register of beneficial owners that requires certain entities to provide personal, tax code and citizenship data.

The Italian Business Register stores and manages information about companies incorporated in Italy across all business sectors. That information includes: 

  • Incorporation documents
  • Amendments to the articles of association
  • Cessation of business trading, liquidations and insolvency
  • Identity of the company shareholders and directors
  • Registered headquarters

Streamlined Verification in Italy

Identity verification can present complex challenges in Italy. Trulioo can help streamline the process by providing insight into market nuances and access to a broad network of data sources in Italy, including:

  • Consumer
  • Credit agencies
  • Government
  • Telephone directories
  • Mobile and telecommunications
  • Resident files
  • Utility sources

When organizations blend that data source coverage with services such as watchlist screening and adverse media checks, they create a holistic onboarding strategy that can lead to industry-leading verification rates in Italy.

The challenges multiply when organizations verify businesses in the country. But when they access a vast data source network, local expertise and cutting-edge technology, they can accelerate due diligence – from verifying sole proprietorships to unraveling complex ultimate beneficial ownership structures – on any company operating in Italy.

Unified identity and business verification can help ensure compliance, provide accuracy and accelerate onboarding.

A full suite of in-house verification capabilities, paired with global and local data sources, can give organizations the flexibility to quickly and securely onboard any person or business in Italy.

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