Analysis of Ruling Order No. 23439 of 2024: Violation of Customer Identification Obligations

The recent Order No. 23439 of August 30, 2024, issued by the Court of Cassation, addresses a crucial issue in the banking sector: the violation of customer identification obligations. This aspect is of fundamental importance for ensuring the security and integrity of banking operations. The Court reiterated that the failure to identify customers, as provided for by Article 19 of Legislative Decree No. 231 of 2007, constitutes conduct relevant for disciplinary purposes, excluding any mitigating circumstances.

Regulatory Context

Legislative Decree No. 231 of 2007 is the regulatory cornerstone for the prevention of money laundering and terrorist financing. In particular, Article 19 establishes the obligation for employees of financial institutions to identify customers before undertaking any operation. This obligation, as clarified by the ruling under examination, cannot be evaded or derogated from, even in the presence of other provisions concerning risk assessment.

The Ruling's Headnote

(REAL PROTECTION) Employee of a credit institution - Violation of customer identification obligations under Article 19 of Legislative Decree No. 231 of 2007 (prior to amendment by Article 2, paragraph 1, of Legislative Decree No. 90 of 2017) - Disciplinary relevance - Assessment under Article 20 of Legislative Decree No. 231 of 2007 - Mitigating impact - Exclusion - Basis. In matters of disciplinary offenses by an employee of a credit institution, the violation of the obligation to identify customers in their physical presence, as provided for by Article 19 of Legislative Decree No. 231 of 2007, in the wording applicable ratione temporis (prior to the amendment by Article 2, paragraph 1, of Legislative Decree No. 90 of 2017), constitutes relevant conduct. Nor is this obligation derogated from by Article 20 of the same Legislative Decree, which governs other aspects of risk assessment that presuppose the customer's identification having already been completed.

Implications of the Decision

This decision has significant implications for the banking sector, as it clarifies that the violation of identification obligations is not merely a matter of regulatory compliance but also carries significant disciplinary connotations. In particular, employees who fail to comply with these obligations may be subject to disciplinary sanctions, including dismissal. It is therefore crucial for financial institutions to ensure that their staff are adequately trained and aware of their responsibilities.

• Importance of staff training
• Relevance of regulatory compliance
• Disciplinary implications for violations