Under the legislation so-called "anti-money laundering" (Legislative Decree no. 231 of 21 November 2007, as amended) notaries, "when, in the name of or on behalf of their clients, carry out any financial or real estate transactions”, shall comply with the clients due diligence requirements:
A. Identification and identity supporting evidence
All clients and all those assisting them both in the planning and execution of transactionS (brokers, independent professionals, consultants, relatives, friends, etc ...) shall be identified by copying or scanning identity documents (Identity Cards or Passports and secondarily also: driver's licenses, boat licenses, pension cards, gun licenses, residence permits).
Identity documents must be valid. For companies’ or entities’ legal representatives actual existence of corporate powers shall always be verified.
B. Identification and identity supporting evidence of the beneficial owner
The "beneficial owner" means the natural person who ultimately owns or controls the client and/or the natural person on whose behalf a transaction or activity is being conducted, or should it be a legal entity, the natural person(s) who ultimately own(s) or control(s) the legal entity, or resulting beneficiay(ies) of it.
Pursuant to Section 21 of Legislative Decree no. 231/2007 “in order to identify the beneficial owner, clients provide in writing, under their own responsibility, all the necessary information and data they are aware of”.
Section 55, paragraph 2, of Legislative Decree no. 231/2007 provides penalties as follows: "Unless the fact constitutes a more serious offense, the executor of a transaction who fails to indicate the identity of the person on whose behalf he/she likely is carrying out the transaction or provides a false identity shall be punished with imprisonment from six months to one year along with a fine raging from 500.00 to 5,000.00 Euros”.
C. Information on purpose and intended nature of business relationships
Pursuant to Section 21 of Legislative Decree no. 231/2007 "Clients provide, under their own responsibility, all the necessary and updated information to allow recipients of this Decree to fulfill any clients due diligence requirements” therefore including any information on the actual purpose and intended nature of a particular business relationship.
Section 55, paragraph 3, of Legislative Decree 231/2007 provides for penalties as follows: "Unless the fact constitutes a more serious offense, the executor of the transaction who do not provide information on the purpose and intended nature of an ongoing business relationship or of a professional service or provides false information thereof shall be punished with imprisonment from six months to three years along with a fine ranging from 5,000.00 to 50,000.00 Euros”.
To this end, clients must indicate all methods of payment and must provide their notary every appropriate information in order to determine and demonstrate that their financial means be adequate against those transactions they are carrying out, in particular, they must disclose their money sources (bank loans, third parties’ loans or gifts, etc.) .
D. Politically Exposed Persons (PEPs)
Clients must declare whether they are or have relations with "politically exposed persons" meaning "natural persons residing in other EU or non-EU countries, who are or have been entrusted with prominent public functions as well as immediate family members or persons known to be close associates of such persons”.
1. For persons who are or have been entrusted with prominent public functions:
a) Heads of State, Heads of Government, Ministers and Deputy Ministers or Under-Secretaries;
b) Members of Parliament;
c) Members of Supreme Courts, of Constitutional Courts or of other high-level judicial bodies whose decisions are not subject to further appeal, unless for exceptional circumstances;
d) Members of Courts of auditors or of boards of central banks;
e) Ambassadors, acting delegates and high-ranking officers of the armed forces;
f) members of board of directors, top management or supervisory bodies of State-owned enterprises.
Mid-level officials or lower-ranking officials fall under none of the above categories. The categories referred to in subparagraphs a) to e) shall include, where applicable, the positions at European and international levels.
2. Immediate family members means:
b) children and their spouses;
c) those who had lived in the last five years with the persons referred to in the above subparagraphs;
3. For the purposes of identifying persons known to be close associates of those persons under 1) reference is made to:
a) any natural person who is known to have joint beneficial ownership of legal entities or any other close business relations with one of those person types referred to under 1;
b) any natural person who has sole beneficial ownership of legal entities or legal persons known to be incorporated for the benefit of one of those person types referred to in paragraph 1.
4. Without prejudice to any fulfillment - depending on the level of risk - of the enhanced clients due diligence requirements, when a person no longer is entrusted with prominent public function for at least a one year period, the recipients of this decree shall not consider such a person as politically exposed.