Italy’s “River of Money” Investigation Uncovers Massive Illegal Money Transfers
A Shocking Expose Reveals a Complex Network of Agents and Companies
Italian authorities have uncovered a massive illegal money transfer scheme involving Chinese migrants and the Italian branches of Bank of China. The investigation, dubbed “Cian Liu” or “River of Money”, reveals that millions of euros were illegally transferred from Italy to China using complex networks of agents and companies.
How it Worked
The scheme was designed to evade detection by hiding transactions through third-party countries. Millions of euros were illegally transferred from Italy to China using a network of agents and companies. The money was then hidden in various accounts, making it difficult to track.
Four Bank of China Officials Prosecuted in Plea Bargain Deal
According to sources, four Bank of China officials have been prosecuted in a plea bargain deal. This is not the first instance of illegal money transfers in Italy, with similar schemes uncovered in other cities including Milan and Ravenna.
A Sophisticated System of Illegal Money Transfer Agencies
In 2016, authorities discovered a sophisticated system of illegal money transfer agencies based in Great Britain, which transferred €2.7 billion over almost three years. The scheme involved sending money to a third country before transferring it to China.
Other Investigations Uncover Large-Scale Illegal Money Transfers
Other investigations have also revealed large-scale illegal money transfers from Italy to countries including Dubai and Sri Lanka. In 2019, Italian authorities identified cash flows of more than €3 million towards the island of Ceylon over a period of one and a half years.
Informal Money Transfer Channels Still Prevalent
Experts say that informal money transfer channels still represent at least 30 per cent of all transactions in Italy. EU intermediaries are difficult to control due to regulatory asymmetry and legal system features.
New Tax on Money Transfers Directed to Non-EU Countries
The Italian government has imposed a new tax on money transfers directed to non-EU countries, but critics argue that this will only discriminate against migrants. The low rate of taxation is unlikely to prevent negative consequences.
Conclusion
The “Cian Liu” investigation highlights the need for greater control over informal money transfer channels and EU intermediaries. Enhancing the use of formal money transfer channels would help direct the flow of value into the official financial system, but more needs to be done to tackle this complex issue.
Key Findings
- €2.7 billion transferred through illegal money channels
- 4 Bank of China officials prosecuted in plea bargain deal
- Italian authorities identify large-scale illegal money transfers to Dubai and Sri Lanka
- Informal money transfer channels still represent at least 30 per cent of all transactions in Italy