TITLE: Bank of Italy Imposes €100,000 Administrative Penalty on Cherry Bank for Anti-Money Laundering Compliance Failures
BODY:
On April 21, 2026, the Bank of Italy imposed an administrative monetary penalty of €100,000 on Cherry Bank Spa for breaches of anti-money laundering and counter-terrorism financing (AML/CTF) obligations.
The Bank of Italy identified the breaches following inspections conducted between October 1, 2024, and January 24, 2025. The irregularities concerned deficiencies in customer profiling, adequate due diligence procedures, and active cooperation requirements under Legislative Decree 231/2007 (implementing the fourth and fifth Anti-Money Laundering Directives). Specifically, Cherry Bank Spa failed to comply with provisions under Articles 7, 15, 16, 17, 18, 19, 20, 24, 25, 35, and 36 of Legislative Decree 231/2007, as well as Bank of Italy provisions on internal organization, procedures, and controls to prevent money laundering and terrorism financing (issued March 26, 2019), and provisions on customer due diligence (issued July 30, 2019).
The Bank of Italy initially proposed a penalty of €130,000 through its Institutional Relations and Supervision Service. Following Cherry Bank Spa's submission of observations during the administrative procedure, the Bank of Italy's Board of Directors determined that a reduced penalty of €100,000 was appropriate, taking into account the scope of the irregularities identified and corrective actions initiated by the institution. The penalty was imposed under Article 62 of Legislative Decree 231/2007, which provides for administrative monetary sanctions for breaches of AML/CTF obligations. The Bank of Italy applied the procedural safeguards outlined in Article 145 of the Consolidated Banking Act and Article 65 of Legislative Decree 231/2007, maintaining the separation between investigative and decision-making functions as required by Law 262/2005.