Italian police have dismantled a sprawling underground banking network that funneled hundreds of millions of euros in illicit funds to European drug traffickers over three years, with annual transactions estimated at between £68 million and £85 million. The clandestine operation, headquartered in Prato, north-west of Florence, has its roots in the Chinese mafia's "Fei Chien" or "flying money" system, which enables untraceable money transfers.
The network's global reach spanned Italy, Spain, France, Germany, Belgium, and the Netherlands, with a web of intermediaries taking commissions on each transaction. A client would pay a broker in one location, who would then instruct an agent to transfer the equivalent amount to the recipient in another part of the world, bypassing traditional banking systems.
Investigations have led to the arrest of 41 individuals in Italy and Spain, charged with crimes including criminal conspiracy, drug trafficking, money laundering, and aiding and abetting illegal immigration. Further revelations include a lucrative network facilitating Chinese migrants' passage from Belgrade to Italy's borders, where they were allegedly forced into exploitative work conditions in Prato's textile industry.
Prato has become a focal point for rival Chinese mafia groups vying for control over illicit markets, including clothing and freight transport. The police investigation indicates that these groups also supply workers of various nationalities to the fast-fashion sector, where employees often earn as little as £2.50 an hour for 13-hour days, seven days a week.
Italian authorities have previously highlighted Prato's textile industry's susceptibility to exploitation and organised crime infiltration. The latest crackdown highlights concerns over the city's vulnerability to international money laundering and people-trafficking operations.