Foreign number plate fraudsters: tighter controls as money laundering and tax avoidance come under scrutiny

The response from Matteo Salvini’s ministry begins with the following premise: ‘The phenomenon of vehicles registered in other Member States of the European Union circulating within Italy, including under leasing or hire agreements entered into with foreign operators, is grounded in EU legislation on the free movement of goods and services, as well as in the principles of mutual recognition and non-discrimination between economic operators established in the various Member States. The regulatory framework does not, as a general rule, permit the prohibition or restriction of the use in Italia of vehicles lawfully registered in another Member State, provided that the operation complies with current European and national legislation’. However, ‘the increasing misuse of vehicles registered abroad by persons permanently resident in Italia, who remain on Italian territory beyond the permitted time limits, has made regulatory intervention necessary’ on the part of the Ministry, with legislative measures already adopted since 2018.

The Ministry of Infrastructure and Transport, together with the other relevant authorities, is considering ‘further measures and restrictions aimed at preventing the misuse of leasing or foreign hire arrangements, in accordance with EU legislation and the principles of proportionality and non-discrimination’.

As part of the broader mandate for a comprehensive reform of the Highway Code, the Ministry of Infrastructure and Transport (MIT) is working on a revision of the regulations concerning motor vehicles, motorcycles and trailers registered in a foreign country, which will authorise checks to verify compliance with the insurance obligation for vehicles registered in the Reve (Register of Foreign Vehicles), even by way of derogation from the Madrid Convention (transposed into Italian law by Decree No. 86 of 1 April 2008 of the Ministry of Economic Development), which, as the reply states, ‘does not permit verification of compliance with the insurance obligation, by virtue of the principle of the presumption of the obligation’.

Meanwhile, the focus is very much on enforcement. The practice of ‘esterovestizione’, the response goes on to emphasise, ‘is the subject of intense scrutiny by the police, particularly in the province of Naples’. Indeed, ‘investigations by the District Anti-Mafia Directorate have also revealed that “esterovestizione” is one of the methods used by criminal organisations to launder vehicles of criminal origin, which are then put back on the road’.

For this reason, in order to combat any potential abuse of the practice, police checks are carried out on a daily basis, both as part of routine policing and through ‘high-impact’ operations aimed at preventing and combating unlawful conduct.

The reply to the parliamentary question goes on to state that circulars issued by the Central Directorate for Traffic, Railway and Special Units of the State Police have provided the police forces with clear guidelines on the checks to be carried out on the roads.

At the same time, the MIT’s response concludes, ‘economic monitoring activities across the territory have also been stepped up, aimed at identifying foreign legal entities that own the vehicles being inspected, with a view to ascertaining any fictitious registrations abroad or whether the registered owner is merely a nominal figure, thereby combating tax avoidance practices and irregular conduct more effectively’.