Italian police have dismantled an underground banking network allegedly used by drug traffickers and organised crime groups to move hundreds of millions of euros over several years. The operation, based in Prato near Florence, was reportedly managed since 2021 by a Chinese national and operated as an international financial intermediary for criminal organisations.

According to police, the network functioned as a “global broker” for organised crime, providing anonymous channels to settle payments for large drug shipments without physically transferring cash. Authorities said the system allowed money to be moved between Italy, Spain, France, Germany, Belgium and the Netherlands through a network of intermediaries who charged commissions.

The financial circuit is estimated to have processed between €80 million and €100 million annually for at least three years. Police said clients included Albanian drug trafficking groups operating in Italy and members of the Italian mafia.

Police arrested 41 people in Italy and Spain linked to the network. The suspects face charges including criminal conspiracy, drug trafficking, money laundering and assisting illegal immigration.

Authorities also uncovered a separate migration operation allegedly managed by members of the network. The group reportedly organised illegal routes from China through Serbia and Hungary into the European Union, charging migrants up to €9,500 for transportation to Italian cities including Prato, Turin and Verona. The investigation highlights ongoing concerns over criminal networks operating in Prato, a major textile hub with one of Europe’s largest Chinese communities. Police have previously linked local criminal groups to illegal labour practices, trafficking, drug-related activities and financial crimes.