Bank of China

The Bank of China might have helped with the laundry of money: 4.5 Billion Euro with mob similar structures. The Italian prosecutors are investigating against 297 people and the institution itself.

It’s about a huge money laundry system: Italian prosecutors investigate against 297 suspects and the Bank of China. In the center of investigations are a Bank of China branch in Milan and four high ranked managers. Prosecution sais at least some of the suspects used mob typical techniques like intimidation.

The investigation is about 4.5 billion Euro in total, which come from money laundry, prostitution, exploitations and tax frauds. The money was sent to China in the time 2007 to 2010. The suspects used a money transfer system, which belongs to immigrants in Italy.

Almost half of the sum got sent through the Bank of China, which earned more than 758.000 Euro in commissions as documents of the investigation document. The money got split in smaller units so it wouldn’t attract attention. Furthermore did neither the bank nor the checking personal report the conspicuous documents. Obviously they even helped to cover up tracks which led to sources and destination of the money.

China did not want to cooperate

The Chinese government did not support the italian authorities in the investigations. Even though China makes use of western help itself when it’s chasing it’s white collar criminals.

Italy and China signed a memorandum of agreement for legal cooperation in September. So far mainly China is profiting: In February a Chinese woman got sent out of Italy. China accused her of having stolen 1.4 million Yuan during a security conference in China. This was the first time somebody got sent out of Europe to China for business crimes, as the Chinese ministry for public security confirmed.

The juridicial cooperation is very important for China, which uses the help of foreign governments to chase it’s corrupt officials who left China.

Chinas president Xi Jinping announced the fight against bribary as the highest priority for the governing communist party. The party announced more than 100.000 officials have been charged for corruption already.

What happened to the money outside of Italy?

In this case the Italian police was not able to continue investigate in China. After the money left Italy, it “effetctively disappeared”. The news agency AP said it was able to track parts of the money.

AP announced it was able to track the money to a government owned import-export company, which is accused of trading with faked brand products – partly in the US.

In response to the AP-Report the government owned newspaper “Global Times” published a falsification of the accusations. It defeats the Bank of China and critizises the researches of the AP as “weird”. Furthermore it quoted a legal expert which said the Bank of China “has no obligations to cooperate with the Italian police”.

The accused bank is objecting the accusations and the lawyers of owners of the money transfer system say there clients are innocent.

Following Italian law a judge will check the prosecutions application and either arrange a hearing or stop the process. It could take month till than..