PRATO — Italian police arrested 41 individuals in Italy and Spain in connection with a clandestine banking network. The arrests are linked to charges that include criminal conspiracy, drug trafficking, money laundering, and aiding and abetting illegal immigration. Authorities dismantled an underground financial network that moved several hundred million euros over at least three years.

The financial operation was based in Prato, Italy, and had been managed by a Chinese national since 2021. This network transferred capital between Italy, Spain, France, Germany, Belgium, and the Netherlands. The system utilized intermediaries who retained commissions, and it moved between €80 million and €100 million annually for at least three years.

Network clients included Albanian trafficking organizations that operated in Italy and groups within the Italian mafia. The system used a method known as Fei Chien, or flying money, to route international payments. Italian police stated: "The operation acted as a global broker at the service of organised crime, offering secure channels for paying for huge drug consignments without any physical movement of cash and guaranteeing total anonymity of financial flows."

A branch of the operation also facilitated illegal immigration from China. Migrants were flown to Belgrade, then transported or marched to the Hungarian border to enter the European Union and Italy. Migrants were charged up to €9,500 for transportation to destinations such as Prato, Turin, or the province of Verona.

Prato is a city in Italy that hosts a major textile industry and one of Europe's largest Chinese communities. Workers supplied to Prato's textile industry are paid approximately €3 per hour and work 13 hours daily, seven days per week. Chinese criminal organizations in the region are also involved in illegal betting, prostitution, and drug distribution.

No independent assessment was available for this report.