Goebbels complained about the Italians treatment of Jews - it was too lax according to him.
Mussolini did make some anti-Jewish laws, but he wasn't willing to go to the extremes of Hitler.
The Italians refused to deport Jews from Italy or Croatia to Auschwitz.
All of the Axis powers leaders, Mussolini was not near the level of Hitler, and below Tojo, he was a bad man, of of the 3 he was the least dangerous one.
The Japs also refused to deport Jews from Shanghai, even though the Nazis requested them to do so.