Chinese Migrants’ Money Transfer Habits Under Scrutiny in Italy
A Shocking Revelation: Illegal Money Transfers Linked to Criminal Activities and Tax Evasion
Rome, Italy - Italian authorities have uncovered a widespread practice of illegal money transfers by Chinese migrants, using informal channels to launder millions of euros annually. This “captive” money transfer system has been linked to criminal activities and tax evasion.
The Investigation: “Cian Liu”, or “River of Money”
Italian financial police identified several cases where Chinese migrants used illegal money transfer agencies and companies based in the UK and other countries to send large sums of money to China. The investigation, dubbed “Cian Liu” or “river of money”, uncovered a sophisticated system that allowed the migrants to circumvent banking authorities and avoid reporting suspicious transactions.
Bank of China Involvement
The probe also revealed the involvement of Italian branches of Bank of China in failing to report suspicious transactions, leading to four officials being prosecuted. This is not an isolated incident; other investigations have uncovered similar cases of Chinese migrants using informal money transfer channels to launder money.
Examples of Illegal Money Transfers
- In 2015, a similar case was reported in Parma and Reggio Emilia, where almost €1m was sent to Dubai and the Arab Emirates without any migrants from those countries present in the area.
- Financial police discovered several money transfer operations made by the same agent representing four different intermediaries in Ravenna.
- In Verona, cash flow of over €3m was identified being sent to Sri Lanka over a period of one and a half years.
Experts’ Analysis
Experts believe that the use of informal money transfer channels is a result of the regulatory asymmetry between Italy and other countries, as well as the features of the legal system. They also warn that the lack of control over these channels makes it difficult to track the flow of funds and prevent criminal activities.
Measures Implemented by Italian Authorities
Italian authorities have implemented several measures to combat money laundering and tax evasion, including the reporting system created by anti-money laundering regulations. However, experts argue that more needs to be done to enhance the use of formal money transfer channels and bring informal channels under control.
Conclusion
The widespread use of informal money transfer channels by Chinese migrants in Italy highlights the need for a more effective regulatory framework to prevent criminal activities and ensure the integrity of the financial system.
Key Takeaways
- Italian authorities have uncovered a widespread practice of illegal money transfers by Chinese migrants.
- The “captive” money transfer system has been linked to criminal activities and tax evasion.
- Informal channels are used due to regulatory asymmetry between Italy and other countries, as well as features of the legal system.
- More needs to be done to enhance the use of formal money transfer channels and bring informal channels under control.