Italy seizes €486 000 in investigation into money laundering
| 2025-07-31
Italy seizes €486 000 in investigation into money laundering
The European Public Prosecutor’s Office has seized €486,000 in Italy amid a probe into suspected fraud and money laundering involving EU recovery funds.
Prosecutors in Italy seize nearly half a million euros in suspected EU fund fraud
The European Public Prosecutor’s Office (EPPO) has ordered the seizure of assets worth €486,000 in Italy as part of a widening investigation into suspected fraud and money laundering linked to the European Union’s Recovery and Resilience Facility (RRF), authorities confirmed on Tuesday.
The operation, led by the EPPO’s office in Venice and carried out by the Italian Financial Police (Guardia di Finanza) in Treviso, targets four companies and six individuals suspected of misusing EU funds intended to support Italy’s digital transition efforts.
False Claims and Stalled Projects
According to the EPPO, two companies are believed to have fraudulently secured public funds by submitting falsified documents and declarations. These included false claims about having operational sites in southern Italy, overstated financial stability, and intentions to carry out digital transition projects—none of which were realised.
Investigators say the scheme extended beyond the initial two companies. Two more businesses and six individuals, allegedly tied to the original actors, are now under scrutiny for similar conduct.
Authorities believe the suspects obtained €486,000 in RRF funds illegally. Of that amount, approximately €183,000 was reportedly laundered through debt repayments made to other companies connected to what the EPPO describes as a “criminal association”.
Nationwide Operation Across Multiple Provinces
The Guardia di Finanza seized financial assets and real estate linked to the suspects, with operations conducted across several Italian provinces: Bari, Barletta-Andria-Trani, Brescia, Treviso and Venice.
“All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law,” the EPPO said in a statement, underlining due process protections.
The EPPO, headquartered in Luxembourg, is responsible for investigating and prosecuting crimes that harm the financial interests of the European Union. It began operations in 2021 and operates independently of national governments.
Misuse of RRF Funds Raises Oversight Questions
The Recovery and Resilience Facility is the EU’s flagship programme to help member states recover from the economic and social impact of the COVID-19 pandemic. Italy is among the largest recipients of RRF support, with a significant portion earmarked for green and digital projects.
The latest case adds to a growing number of investigations across the EU involving suspected misuse of RRF allocations. The EPPO has stressed the importance of maintaining public trust in the integrity of EU funding mechanisms, particularly amid heightened scrutiny over spending and outcomes.
Christopher Saettel, acting head of the EPPO’s operations in Italy, has previously warned of the “elevated risk of fraud in the fast-disbursing framework of EU recovery funds,” and called for robust national-level monitoring to complement EU oversight.
Context: Rising Anti-Fraud Enforcement Across the EU
The EPPO has ramped up enforcement efforts across several member states in recent months, with seizures and prosecutions relating to public procurement fraud, VAT evasion, and embezzlement of EU funds.
In June, a separate operation in Romania uncovered €2 million in fraudulent claims connected to digital infrastructure projects. In Spain, a construction consortium is under investigation for allegedly inflating costs on publicly funded environmental projects.
As of July 2025, the EPPO reports it is handling over 1,500 active investigations into crimes against the EU budget, with total estimated damages exceeding €6 billion.
The Italian case underscores the continuing challenge of safeguarding public money in large-scale recovery initiatives and may prompt further scrutiny of how funds are awarded, tracked, and audited across the EU.
The European Public Prosecutor’s Office (EPPO) has ordered the seizure of assets worth €486,000 in Italy as part of a widening investigation into suspected fraud and money laundering linked to the European Union’s Recovery and Resilience Facility (RRF), authorities confirmed on Tuesday.
The operation, led by the EPPO’s office in Venice and carried out by the Italian Financial Police (Guardia di Finanza) in Treviso, targets four companies and six individuals suspected of misusing EU funds intended to support Italy’s digital transition efforts.
False Claims and Stalled Projects
According to the EPPO, two companies are believed to have fraudulently secured public funds by submitting falsified documents and declarations. These included false claims about having operational sites in southern Italy, overstated financial stability, and intentions to carry out digital transition projects—none of which were realised.
Investigators say the scheme extended beyond the initial two companies. Two more businesses and six individuals, allegedly tied to the original actors, are now under scrutiny for similar conduct.
Authorities believe the suspects obtained €486,000 in RRF funds illegally. Of that amount, approximately €183,000 was reportedly laundered through debt repayments made to other companies connected to what the EPPO describes as a “criminal association”.
Nationwide Operation Across Multiple Provinces
The Guardia di Finanza seized financial assets and real estate linked to the suspects, with operations conducted across several Italian provinces: Bari, Barletta-Andria-Trani, Brescia, Treviso and Venice.
“All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law,” the EPPO said in a statement, underlining due process protections.
The EPPO, headquartered in Luxembourg, is responsible for investigating and prosecuting crimes that harm the financial interests of the European Union. It began operations in 2021 and operates independently of national governments.
Misuse of RRF Funds Raises Oversight Questions
The Recovery and Resilience Facility is the EU’s flagship programme to help member states recover from the economic and social impact of the COVID-19 pandemic. Italy is among the largest recipients of RRF support, with a significant portion earmarked for green and digital projects.
The latest case adds to a growing number of investigations across the EU involving suspected misuse of RRF allocations. The EPPO has stressed the importance of maintaining public trust in the integrity of EU funding mechanisms, particularly amid heightened scrutiny over spending and outcomes.
Christopher Saettel, acting head of the EPPO’s operations in Italy, has previously warned of the “elevated risk of fraud in the fast-disbursing framework of EU recovery funds,” and called for robust national-level monitoring to complement EU oversight.
Context: Rising Anti-Fraud Enforcement Across the EU
The EPPO has ramped up enforcement efforts across several member states in recent months, with seizures and prosecutions relating to public procurement fraud, VAT evasion, and embezzlement of EU funds.
In June, a separate operation in Romania uncovered €2 million in fraudulent claims connected to digital infrastructure projects. In Spain, a construction consortium is under investigation for allegedly inflating costs on publicly funded environmental projects.
As of July 2025, the EPPO reports it is handling over 1,500 active investigations into crimes against the EU budget, with total estimated damages exceeding €6 billion.
The Italian case underscores the continuing challenge of safeguarding public money in large-scale recovery initiatives and may prompt further scrutiny of how funds are awarded, tracked, and audited across the EU.
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