Prosecutors in Florence have formally applied to a judge to decide whether to indict the Bank of China and several Chinese nationals in Italy for alleged money laundering. The request follows nearly a decade of investigations into the transfer of remittances from Italian cities.

According to Ansa, investigators discovered that between 2006 and 2010, Chinese nationals transferred up to 4 billion euros (over $5 million or over 31.6 billion yuan) as remittances to China. The money was allegedly deposited with local money transfer companies, who forwarded it to the Bank of China's Milan branch, for the funds to be finally transferred to China.

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According to the prosecutors, a large percentage of the money transferred were secured through illegal means, including theft, smuggling, money laundering, tax evasion as well as other custom and labor-related crimes. The transfers were allegedly made in low amounts so as not to attract the attention of the authorities.

Among the suspects under the spotlight are four executives of the Bank of China's Milan branch, as well as the Italian operators of a Bologna-based money transfer service. Additionally, 24 of the suspects have been accused of mafia-like activities, including conspiracy, intimidation and subjugation.

Chinese nationals in Italy have since been accused of running crime syndicates which ensured the exploitation of fellow immigrants for cheap labor. A research by the International Fund for Agricultural Development (IFAD) shows that Italy is the fifth European country where the highest percentage of remittances was sent from in 2014 ($10.4 billion or 64 billion yuan). The study also revealed that China is the second country where most remittances from Europe flowed to last year ($6.3 billion or about 39 billion yuan).

The People's Bank of China is yet to officially pass a comment on this case. Experts say this case could sour the relationship between Italians and Chinese migrants as economists highlight the effects of siphoning money overseas on the local economy.  

TagsBank of China, Chinese immigrants in Italy money laundering, Bank of China Milan Money Laundering, Italy to China remittances