CCP-controlled Chinese banks continue to make money through massive illegal operations in Italy.

In March 2023, “Bitter Winter” provided the sole detailed English-language account of “Operation Belt and Road,” an extensive investigation by the Italian Tax Police. This operation revealed collaboration between mainline Chinese banks, the Italian Mafia, Colombian drug cartels, and Russian oligarchs linked to Putin, resulting in the laundering of at least $17 billion. Contrary to China’s claim that these were solely “Chinese criminals,” CCP-controlled banks played a significant role in the illicit activities.

The Italian Tax Police, known for their persistence, continued their efforts, announcing on January 25 a follow-up operation called “Operation Fast and Clean.” This uncovered another system focused on a “mainline Chinese bank,” through which around $2 billion were laundered in the Italian regions of Lombardy and Marche. Unlike the complex structure exposed in Operation Belt and Road, this system operated through fictitious companies incorporated in Lombardy, existing only on paper. The addresses provided often led to nonexistent locations or abandoned structures.

These sham companies invoiced nearly $2 billion to Italian companies over the past two and a half years for non-existent goods and services. After receiving payments, they requested Chinese companies to invoice them for equivalent amounts for the sale of equally non-existent goods. The funds were then transferred to accounts at the “mainline Chinese bank,” which retained a portion and returned the remaining cash to the Italian companies. The illicit funds were handed over to dishonest Italian businesspeople in sealed bags in Chinese establishments such as restaurants, shops, or garment workshops.

It is anticipated that Chinese authorities will express gratitude to Italian law enforcement for exposing the misdeeds of “rogue bureaucrats” within their banking system. This response, akin to the one following “Operation Belt and Road,” may claim severe punishments for the implicated individuals. However, skepticism remains, as the notion that CCP-controlled banks could engage in multi-billion dollar illegal operations for years without Party knowledge appears implausible.

A more plausible interpretation suggests that CCP-controlled banks persist in offering international money-laundering services to capitalize on financial opportunities during challenging times while simultaneously undermining Western nations’ economies.

This post is based on the information of the magazine “Bitter Winter”