Italian prosecutors started a probe into the Italian offices of the Bank of China for allegedly smuggling more than 4.5 billion euros ($5.12 billion) into Beijing from 2006 to 2010.

The probe, dubbed "River of Money," aims to bring 297 people, the majority of which are Chinese, to trial on charges of aiding illicit money flows from Italy to Beijing.

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Reports said the officials of the Bank of Italy have taken over the offices of the Bank of China, a state-owned bank, and have conducted an on-site inspection as part of the ongoing probe.

"River of Money"

The "River of Money"  started its investigation into the Bank of China's link to a defunct money remittance center known as Money2Money which used to be the top money transfer agency for Chinese remittances from Italy.

Officials of the Bank of Italy started its supervisory inspection into the beleaguered Chinese bank days after a judicial investigation started in Florence.

The judge in Florence is yet to decide on whether the bank officials will be indicted or not.

The Bank of China has denied involvement with the money transfer agency and said it will cooperate with any investigation that will be conducted in relation to the smuggling accusations.

"Bank of China is providing full cooperation to the Italian Supervisory Authority," the bank told Reuters.

The Chinese bank officials denied that the inspection is part of its alleged link with the Money2Money transfer agency and said it was a routine procedure that covers business transactions and is done every three years.

"It is not connected to the M2M (Money2Money) issue," the Chinese bank said.

Amid the repeated denials, the Bank of Italy's financial intelligence unit pinpointed hundreds of suspicious money transfers from Italy to China using the Money2Money money transfer agency between 2008 and 2009.

TagsBank of China, Bank of Italy, Money2Money, Italian Supervisory Authority, "River of Money", on-site inspection, smuggling, money flows, china