Framework Agreement for the Prevention of Usury and Support for Victims of Racketeering, Extortion, and Usury

Ministry of the Interior FRAMEWORK AGREEMENT between the Ministry of the Interior, the Bank of Italy, the Italian Banking Association, the National Association of Italian Municipalities, the Union of Italian Provinces, Confindustria, Confcommercio, Confesercenti, Casartigiani, the Italian Confederation of Farmers, the National Confederation of Craftsmanship and Small and Medium Enterprises, CONFAPI, Confartigianato, Coldiretti, Confagricoltura, Asso-Confidi, the National Anti-Usury Council, the Italian Federation of Anti-Racket Associations, Adventum, and Adiconsum, for the prevention of usury and for the support of victims of racketeering, extortion, and usury Rome, Palazzo del Viminale, July 31, 2007

The Ministry of the Interior, the Italian Banking Association, the category associations of economic operators, the National Confidi Coordination, the National Anti-Usury Council, the Italian Federation of Anti-Racket Associations, and Adventum signed, on December 16, 2003, a "Memorandum of Understanding", aimed at the use of the Prevention Funds, pursuant to Article 15 of Law No. 108/1996, to be reproduced and applied locally, under the responsibility of the Prefectures and the Associations involved. In application of the "Memorandum of Understanding", eight Prefectures have proceeded, until June 2006, to the drafting and signing of analogous protocols at the local level and, subsequently, based on Circular No. BE/L.3, dated November 10, 2006, of the Government Commissioner for the Coordination of Anti-Racket and Anti-Usury Initiatives, addressed to the Prefects of the Republic, further "Memoranda of Understanding" were stipulated in other provinces. While confirming the significance of these "Memoranda of Understanding", signed locally, in conformity with that signed in December 2003 at the national level, the Ministry of the Interior, on the proposal of the Government Commissioner, in order to increase the results achieved, deems it necessary a "Framework Agreement", which must be applied at all levels, central and peripheral, and verified, in the forms indicated below, without further formalities. The Prefects in office, however, will proceed to apply the present "Framework Agreement" and, where signed, to integrate or replace the "Memoranda of Understanding" with the present "Framework Agreement", ensuring the involvement, at the peripheral level, of the new signatory subjects as well. The "Framework Agreement" has the purpose, therefore, of making the relationship between Banks, Business and Category Associations, as well as Confidi, Foundations, and Anti-Usury Associations more fruitful, recipients, to varying degrees, of the special anti-usury Funds, pursuant to Article 15 of Law No. 108/1996, with the perspective of maximum operability of the Prevention Funds, managed by Confidi, and the strengthening of the collaboration activity to be carried out ever more diligently by Foundations and Anti-Usury Associations for the prevention of the criminal phenomenon, also in favor of families and other subjects not engaged in economic activity, who do not have access to Confidi.

The intensification of the operability of the resources of the Prevention Fund, managed by the Ministry of Economy and Finance, is considered by the Ministry of the Interior a priority commitment, with which the signatories of the present "Framework Agreement" agree, in order to promote initiatives aimed at containing the spread of criminal phenomena and increasing the support instruments for small and medium-sized enterprises in temporary difficulty, in the awareness that such phenomena constitute a serious threat to the freedom of economic operators, to market equilibria, and to the respect and permanence of normal rules on competition. Taking into account the undeniable social value of anti-usury legislation and the negative impact that every form of economic crime produces in the free flow of the market for goods and services for businesses and families, as well as the traditional climate of collaboration between the banking sector and that of the Collective Guarantee Consortia and of Foundations and Anti-Usury Associations, it is intended to favor: a) the fruitfulness of every reciprocal relationship aimed at facilitating dialogue based on maximum collaboration and mutual trust, also for a common commitment to strengthen the paths that facilitate access to legal credit, in light of the imminent application, by the banking system, of regulations on bank supervisory capital (Basel 2); b) a prevention activity based on information and education on the responsible use of money, as well as the introduction of stricter regulation of the activity of credit intermediaries and controls for financial subjects, registered in the general list at the UIC; c) the encouragement, by victims of racketeering and usury, to report extortionists and usurers, with the perspective of access to the Solidarity Fund for victims of extortion and usury; d) the recovery of dishonored check holders into the legal credit system. For the purposes previously recalled, therefore, the present "Framework Agreement" is signed, which is composed of the provisions reported below.

Art. 1 (Principles of the "Framework Agreement") The signatories of the "Framework Agreement" commit to: a) constitute, by Decree of the Minister of the Interior, an "Observatory", at the Ministry of the Interior - Office of the Government Commissioner for the Coordination of Anti-Racket and Anti-Usury Initiatives; b) promote information initiatives on the utilization of anti-usury funds; c) disseminate and apply the present "Framework Agreement" throughout the national territory; d) collaborate in actions against misleading advertising; e) increase microcredit activity.

Art. 2 (Commitments of the ABI) The ABI, in application of the principles of this "Framework Agreement", commits to: a. promote the adherence to the present "Framework Agreement" by Banks, communicating it with a specific circular letter and giving timely information of the adherences to the Government Commissioner; b. ensure a continuous and direct comparison with Confidi, Associations, and Foundations, with the objective of a gradual improvement in the management of problems that may concern, from time to time, new and old anti-usury agreements; c. monitor, in aggregated form, the volume of loans or credit facilities granted and the non-performing loans that arise; d. perform, in relation to the monitoring activity, periodic reporting to the Government Commissioner; e. organize Seminars – at the national and local level at the Regional Banking Commissions – on the systems put in place by Law No. 108/1996 for the prevention of usury and racketeering, in order to illustrate the activity of Confidi, Foundations, and Anti-Usury Associations, their potential, and their social and economic role; f. keep at the ABI, available to Banks, updated lists of the Referents of Foundations, Associations, and Confidi, recipients of anti-usury funds.

Art. 3 (Observatory) The Observatory for the permanent verification of the application on the territory of the "Framework Agreement" and for the monitoring of anti-racket and anti-usury activities, is constituted, by Decree of the Minister of the Interior, at the Ministry of the Interior and, chaired by the Deputy Minister delegated or, by delegation, by the Government Commissioner, is composed of:

• Government Commissioner for the Coordination of Anti-Racket and Anti-Usury Initiatives;
• Representatives of the Ministry of the Interior, in the persons of the Central Director for Documentation and Statistics (or a delegate), Department for Personnel Policies of the Civil Administration and for Financial Resources, and an Official of the Ministry of the Interior;
• Representatives of the Ministry of Justice, the Ministry of Economy and Finance, the Ministry of Economic Development, and the Ministry of Labor and Social Security;
• Representative of the Bank of Italy;
• Representatives of the Italian Banking Association and other categories of financial intermediaries;
• Representative of ANCI;
• Representative of UPI;
• Representative of the Italian Currency Office, until the absorption of this Office into the organization of the Bank of Italy;
• Representatives of Business and Category Associations, which have signed the "Framework Agreement";
• Representative of the National Confidi Coordination;
• Representative of the National Anti-Usury Council;
• Representative of the Italian Federation of Anti-Racket Associations;
• Representative of Adventum;
• Representatives of the Ordinary Judiciary of every order and degree (DNA, Court of Cassation, Prosecutors, Courts);
• Representatives of the Law Enforcement Forces;
• Representative of CNEL;
• Representative of ISTAT;
• Representative of UNIONCAMERE;
• Representative of ADICONSUM. The Observatory operates through a Committee of Coordinators of Working Groups and a Restricted Committee, chaired by the Government Commissioner. The Restricted Committee includes, by right, in addition to the Government Commissioner, who chairs it, the representative of the Bank of Italy, the representatives of the ABI, Confidi, and Anti-Racket and Anti-Usury Organizations, present in the Observatory, and an Official of the Ministry of the Interior. On the verifications and checks carried out, the Restricted Committee may be integrated, from time to time, at the request of the Committee itself, by the Regional Referents of the ABI, Confidi, and Associations and Foundations involved. The Observatory has its seat at the Office of the Government Commissioner for the Coordination of Anti-Racket and Anti-Usury Initiatives and lasts in office for three years, from the date of the Ministerial Decree of constitution. The Observatory absorbs all functions attributed to the previous Permanent Observatory on the phenomena of racketeering, extortion, and usury, established by Decree of the Minister of the Interior of June 2, 1998, and expired on March 7, 2007. In the fulfillment of their tasks, the members of the Observatory, the Committee of Coordinators of Working Groups, and the Restricted Committee, adhere to the principles of independence, impartiality, loyalty, discretion, and avoid any situation that could give rise to conflicts of interest, even only apparent, nor use or disseminate confidential information for the purpose of deriving advantage for themselves or for other subjects.

Art. 4 (Functions of the Observatory)

1. To the Observatory, in addition to the tasks indicated in Art. 3, the following functions are attributed: a. realization of a mapping of the existing, regarding the phenomenology of racketeering, extortion, and usury, both for geographical areas and for socio-economic categories, in order to arrive at the formulation of a framework containing the extent and concrete configuration of such crimes; b. monitoring of geographical realities, in order to possess data that allow measuring the qualitative and quantitative evolution of criminal association activity; c. study and proposal of countermeasures to such crimes and dissemination of a culture of prevention in social realities; d. organization of "themed" initiatives involving all economic operators, sensitive to pressures that distort free competition; e. establishment of a "library", also virtual, where material of public utility on the subject is available; f. preparatory activity for the drafting, by the Government Commissioner, of a "White Paper on Racket and Usury", to be submitted annually for approval by the Minister of the Interior, for presentation to Parliament, by June of each year; g. elaboration, in agreement with ISTAT, of mathematical-statistical models for the detection of the usury phenomenon; h. definition of the levels of collaboration between all Administrations involved and the Judicial Authority, in light of the recent circular of the Head of the Department for Justice Affairs of the Ministry of Justice.
2. The Observatory, for operational purposes, constitutes, within itself, Working Groups, with the following tasks: a. elaboration of standard agreements, in compliance with antitrust regulations, which take into account regulations on bank supervisory capital (Basel 2); b. elaboration of jurisprudential cases of the crimes in question and the connected typologies of offenses; c. updating of data related to reported cases and investigative solutions adopted, with reference also to the organization on the territory and the mapping of risk areas; d. studies and cases on the state of implementation of the present "Framework Agreement", also in order to propose adjustments and integrations, such as those related to the calculation methods of threshold rates and supervision of financial intermediaries; e. examination of data on the trend of the credit economy, in order to evaluate the most common needs and gaps in the perception of obligations and responsibilities in assuming credit; f. study of policies used for prevention and assistance at the local level and updated data, regarding the relevance of usury at the territorial level; g. preparatory studies for a more incisive identification of the criminal offenses connected to the usury phenomenon and for the introduction of more streamlined and rapid criminal procedural norms; h. coordination, with particular reference to detection methodologies, with activities carried out by other existing public observatories on the national territory; i. publicity, in the forms deemed appropriate, of the activities carried out and results achieved by the Observatory.

Art. 5 (Referents for Financing) Banks, adhering to the present "Framework Agreement" and "Memoranda of Understanding", signed at the local level, commit to identifying within their organizations the figures of Referents. The Referents will have the task of following the procedural steps of credit facility applications related to the utilization of usury prevention funds and to interact, with Confidi, Foundations, and Anti-Racket and Anti-Usury Associations. It will be the duty of the ABI to establish, at the regional level, Referents expressed by the Regional Commissions of the ABI to support the Referents for the financing of the various Banks, with the task of ensuring the functioning, at various local levels, of permanent dialogue tables with Confidi, Foundations, and Associations present on the territory. The appointments of the Referents of the Banks and the ABI must take place promptly and be communicated to the Government Commissioner. A specific list of the Referents of the ABI and Banks will be drawn up, under the responsibility of the Government Commissioner, which will be consultable on the Internet site of the Ministry of the Interior, at the link "Anti-Racket and Anti-Usury".

Art. 6 (Speed of Responses and Decisions) Confidi commit to carrying out, in rapid times, the procedure following the request for credit access to the funds, such as the examination by the technical committee and the resolution of the Board of Directors. Banks, adhering to the present "Framework Agreement", commit, taking into account the reports of Confidi to the maximum extent, particularly regarding the "guarantee/credit granted" ratio, to make decisions on financing proposals in rapid times, not exceeding thirty days, and to disburse the related sums promptly.

Art. 7 (Beneficiary Subjects) The signatories of the present "Framework Agreement" commit to identifying the subjects who, through Confidi, Foundations, and Associations, can access the funds in question:

• entrepreneurs, merchants, and artisans;
• those exercising a liberal art or profession;
• self-employed workers, employees, and pensioners.

Art. 8 (Multiplier) Banks, Confidi, Foundations, and Associations, adhering to the present "Framework Agreement" and "Memoranda of Understanding", signed at the local level, commit to providing, within the individual agreements already stipulated, the multipliers to be applied, with reference to anti-usury funds, in a minimum measure of 2, except for specific, exceptional, and motivated situations, which can only be updated in a growing measure.

Art. 9 (Evaluation of Creditworthiness) By Banks, adhering to the present "Framework Agreement", the condition of dishonored check holder cannot be considered prejudicial, taking into account that, pursuant to Art. 7, paragraph 2 of D.P.R. No. 315/1997, the guarantee of the special anti-usury fund can be deliberated by the Confidi if there is, for the same financing, a guarantee of the Confidi itself on its own ordinary risk fund, issued based on the criteria fixed in the Statute of the Confidi. To this end, Banks, adhering to the present "Framework Agreement", commit to ensuring the possibility of "re-banking" dishonored check holders, also through an initial experimentation, linked to the case history, filtered, monitored, and managed together with Confidi, Foundations, and Anti-Usury Associations. In this context, Banks, adhering to the present "Framework Agreement", make recourse to the "basic banking service", in favor of dishonored check holders, which allows a series of operations, free of credit risk, but capable of reintegrating dishonored check holders into the legal credit system. Banks, adhering to the present "Framework Agreement", commit to paying maximum attention to victims who have reported extortion and usury facts and have requested access to the Solidarity Fund, for the evaluation of existing credit facilities and any new requests for credit. Banks, adhering to the present "Framework Agreement", also commit to evaluating with particular care the suspension of revocatory or executive actions against these subjects, whose applications are pending before the Solidarity Committee. In the event of a decision of denial, total or partial, by Banks, adhering to the present "Framework Agreement", the interested subjects may address, for the search of alternative solutions, also through Anti-Racket and Anti-Usury Organizations, to the Restricted Committee of the Observatory, pursuant to Article 2.

Art. 10 (Information Initiatives on the Utilization of Anti-Usury Funds) The signatories of the present "Framework Agreement" commit to the dissemination on the territory of specific communication instruments, such as vade-mecums, also in electronic format, for the implementation of information campaigns on the use of anti-usury prevention funds, with the collaboration of all interested social subjects and in connection with the world of Confidi, Commerce, Industry, and Craftsmanship.

Art. 11 (Dissemination and Application of the Framework Agreement) The signatories of the present "Framework Agreement" commit immediately to promoting their own initiatives, suitable to make known throughout the entire national territory the opportunities for utilization of anti-usury prevention funds and those deriving from the present "Framework Agreement".

Art. 12 (Adherence) The "Framework Agreement" is open to the adherence of all subjects, public and private, who have an interest. Any subsequent request for adherence will be submitted to the mandatory and binding opinion of the Restricted Committee of the Observatory, pursuant to Art. 2.

Art. 13 (Verification) After one year from the signing of the present "Framework Agreement", the signatory subjects will be called to a collegial verification of the results achieved and to make any modifications to it, in order to make it ever more incisive for the achievement of the purposes indicated in the preamble.

The Minister of the Interior Hon. Giuliano Amato

The Governor of the Bank of Italy Dr. Mario Draghi

The Vice President of the Italian Banking Association Dr. Pietro Modiano

The Government Commissioner for the Coordination of Anti-Racket and Anti-Usury Initiatives Prefect Raffaele Lauro

The Vice President of ANCI Lawyer Orazio Ciliberti

The Acting Vice President of UPI Dr. Alberto Cavalli

The President of the Technical Committee for Credit Reserved for Small and Medium Enterprises of Confindustria Dr. Francesco Bellotti

The President of the Council Commission and Policies for Security of Confcommercio Dr. Luca Squeri

The President of Confesercenti Dr. Marco Venturi

The President of Casartigiani Dr. Giacomo Basso

The President of the Italian Confederation of Farmers Dr. Giuseppe Politi

The National Vice President of the National Confederation of Craftsmanship and Small and Medium Enterprises Dr. Lino Pompili

The Head of the Social Policies Office of CONFAPI Dr. Paolo Ravagli

The Acting Vice President of Confartigianato Dr. Tullio Uez

The President of the National Confederation Coldiretti Dr. Sergio Marini

The Head of the Assistance, Insurance, and Credit Office of Confagricoltura Dr. Fabio Tracagni

The National Coordinator of Asso-Confidi Dr. Tino Vaccari

The President of the National Anti-Usury Council Father Massimo Rastrelli

The President of the Federation of Anti-Racket and Anti-Usury Italian Associations Dr. Giuseppe Scandurra

The President of Adventum Father Daniele Benini

The National Secretary – Coordinator of the Usury and Over-Indebtedness Prevention Fund of Adiconsum Dr. Fabio Picciolini

Rome, July 31, 2007