Title: Italian Money Laundering Investigation Uncovers Chinese Organized Crime and €50 Million Transfers
Arrest of 33 Individuals in Italy
The Guardia di Finanza (GdF) recently conducted an unprecedented crackdown on money laundering and international drug trafficking, resulting in the arrest of 33 individuals across seven provinces in Italy 1. The suspects, known to be part of a sophisticated criminal network, are believed to have laundered drug money worth over €50 million and transferred it anonymously to China 2.
Financial Corruption and Criminal Activities
The Italian financial corps coordinated with Rome’s Anti-Mafia Directorate and units focusing on organized crime, financial fraud, and drug trafficking for the arrests 3. The arrested individuals were involved in a criminal association linked to drug trafficking, money laundering, extortion, self-laundering, and illegal weapon possession 3.
Chinese Organized Crime in Italian Society
The ongoing investigation reveals the intrusion of Chinese criminal groups into Italian society 3. These criminal activities include evasion, money laundering, and drug trafficking 3.
Money Laundering Division and Italian Criminal Groups
The GdF uncovered a highly organized money laundering division led by Wen Kui Zheng 4. The division collaborated with two high-level Italian criminal groups, headed by Antonio Gala, Fabrizio Capogna, and Federico Latini 4. The criminals utilized Rome-based businesses dealing with clothing and fashion accessories import-export to launder money 4. These businesses, run by two Chinese family communities, served as collection centers for the transfer of funds of illicit origin overseas 4.
Flying Money Method
The Italian Criminal Investigation Department stated that the alleged money laundering activities employed the “fei qian” (flying money) method 5. This method involved cash deposits with Chinese brokers with no physical movement between countries, enabling the anonymous transfer of funds to counterparties in the destination country 5.
Seized Funds and Criminal Infrastructure
The GdF seized €10 million from the arrests and identified over €4 million that had been transferred to the Rome-based Chinese group 6. They also detained “money mules” responsible for physically transporting cash out of the EU, seizing €8 million at Fiumicino airport near Rome 6.
The investigation revealed the organizations’ significant potential and usage of advanced communication methods, cars with hidden compartments, and secure locations for processing drugs 7.
Ghost Companies and False Invoices
A parallel investigation dismantled a network of ghost companies run by Chinese citizens, led by an Italian accountant. These companies issued false invoices for nearly 300 companies across Italy and sent millions abroad, primarily to China 8. The arrests resulted in the seizure of over €85 million 8.
Intelligence Division’s Report
The Italian Intelligence Division’s Report on Information Policy for Security, published in February 2022, warned of the “business-criminal dynamism of unscrupulous Chinese entrepreneurs” and their “articulated tax evasion and money laundering schemes” that have successfully infiltrated specific national economic sectors by exploiting market advantages and systemic vulnerabilities 9.
Government Intervention
In April 2022, the Meloni government requested the Anti-Mafia Commission to investigate “Chinese infiltration into Italian society” following growing evidence of the issue 10. The GdF had previously reported on the “China underground bank” and arrested two Chinese suspects in March for their involvement in the scheme, shielding it with front businesses like electronics shops 10.