A Chinese bank in Madrid was raided by Spain’s serious crime squad on Wednesday as part of an investigation into alleged money laundering and smuggling.
ICBC (Industrial and Commercial Bank of China), which began operating in Spain in 2011, is China’s biggest lender.
It is suspected the bank was being used to "introduce into the financial system funds earned through the alleged crimes of smuggling, tax fraud and the violation of workers' rights, allowing the transfer of the funds to China in a way that appeared legal," the police statement read.
For some years Spain has conducted investigations into Chinese organised crime groups operating in the country and made many arrests.
The scheme usually involves importing vast amounts of Chinese goods into Spain without declaring them in order to dodge taxes and then laundering profits through front companies such as karaoke bars and restaurants.
The current investigation by police, the Spanish tax agency and Europol involves funds handled by a criminal group acting in Spain which the Interior Ministry says passed through the bank and were transferred to China.
Over 100 police were involved in the operation, which saw the arrest of five ICBC directors, Europol said in a statement.
Spanish police last year broke up a gang that was found to have laundered at least €40 million through ICBC, the Ministry said. In that year some 30 people were arrested and 60 premises searched in Madrid, Valencia and Barcelona.
Chinese gangs have also infiltrated Italy. Already in 2006, Chinese mobsters in Italy had sent nearly €3 billion to China from proceeds of prostitution, tax evasion, the sale of counterfeit goods, the exploitation of illegal immigrants among other crimes, mainly in Tuscany, which has a large Chinese population.
