Italy's central bank is inspecting the Italian offices ofBank of China Ltd. followingaccusations that theChinese bank helped smuggle illicit money to China, Reuters reported April 11,citing "a source familiar with the situation."
The Chinese lender's Milan branch is facing charges ofsmuggling more than €4.5 billion into China between 2006 and 2010. A Florencejudge will decide whether the branch and 297 people should be indicted and facetrial.
The supervisory inspection was said to be triggered by theinvestigation in Florence, according to the source. The Chinese bank, however,has denied that there is a link.
The bank did confirm to Reuters that the inspection wastaking place but stressed that it was a routine procedure that takes placeevery three to five years.
The Bank of Italy declined to comment.