Italy Dismantles Sophisticated Underground Bank Used by Drug Cartels and Mafia
Italian police have successfully broken up a massive underground banking network based in Prato. Used by drug cartels and the mafia to launder millions, the illegal system also facilitated human smuggling and exploited workers in the textile industry.
Highlights
- •Authorities dismantled an underground bank in Prato, Italy, used by drug cartels and the mafia.
- •The illicit network processed an estimated 80-100 million euros annually for at least three years.
- •41 individuals were arrested in Italy and Spain on charges including money laundering and drug trafficking.
- •The criminal organization also ran an illegal immigration scheme, smuggling migrants into the European Union.
Italian law enforcement authorities have successfully dismantled a sophisticated underground bank, which was utilized by major drug cartels and organized crime syndicates to facilitate illegal financial operations. This illicit banking network is estimated to have processed several hundred million euros over the past three years. Investigations have revealed that the operation was based in Prato, a city located northwest of Florence, and had been under the direction of a Chinese national since 2021.
The network functioned as a global broker for criminal entities, providing secure channels that allowed for the payment of substantial drug shipments. By utilizing this system, criminals were able to bypass the physical movement of cash, thereby ensuring the total anonymity of their financial transactions. According to police reports, the operation successfully moved between 80 and 100 million euros annually. Key clients of this shadow banking system included Albanian trafficking organizations operating within Italy and various factions of the Italian mafia.
Inside the Global Money Laundering Network
This illegal underground bank relies on a system often referred to as Fei Chien, or "flying money." This method is frequently employed by criminal organizations to execute complex money laundering schemes related to drug payments. The mechanism allows an individual to deposit funds with a broker in Italy, after which an associate in a different part of the world distributes the equivalent amount to the designated recipient, making the trail nearly impossible for authorities to follow.
The financial circuit enabled the virtual transfer of capital across several countries, including Spain, France, Belgium, Germany, and the Netherlands. A network of intermediaries managed these transfers in exchange for a commission. Following an extensive investigation, authorities arrested 41 individuals across Italy and Spain. These suspects face a range of serious charges, including criminal conspiracy, money laundering, international drug trafficking, and facilitating illegal immigration.
Beyond its financial services, the criminal organization also operated a lucrative illegal immigration network. Migrants from China were transported to Belgrade before being moved toward the European Union, often through hazardous mountainous terrain near the Hungarian border. These individuals were charged up to 9,500 euros to reach destinations such as Prato, Turin, or Verona. Within Prato, which serves as a hub for the textile industry, evidence suggests the Chinese mafia has exploited workers in the fast-fashion sector, subjecting them to grueling 13-hour workdays for minimal pay.
