EUF letter to Assifact on Anti Money Laundering regulation

Anti Money Laundering regulation in Europe requires that a risk based approach is taken in regard to Know Your Customer checks.

In factoring, the customer is generally regarded as the client of the factoring company.

However, in a recent decision that could dramatically affect the Italian Industry, the Bank of Italy has provided an interpretation according to which this requirement should be applicable also to the debtors of the client, when paying their debts. This interpretation will create a near impossible workload burden for factors.

The blanket based decision is not consistent with the money laundering risk underlying the factoring operation as well as out of line with the approaches taken in the other leading European markets and will lead to a non-level playing field.

The EUF has therefore written to Assifact, the Italian National Factoring Association, to express its concern and to support Assifact in its efforts to seek a change in approach from the Bank.

The letter is available for members to read in the private Members Section.