Italy and Germany Seize €7 Million in Sports Funding Money Laundering Probe

Italian and German authorities have uncovered an alleged €4.5 million money laundering scheme involving the misuse of funds intended for a sports association, according to Eurojust. Authorities seized €7 million in assets as a preventative measure during coordinated action on September 3.

Italian investigators are examining the roles of three individuals, including the association’s former legal representative. Between 2018 and 2024, the representative allegedly laundered money received through grants and funding from universities, public organizations, and national sports bodies.

Investigators say a second fake sports association was used to divert funds from the legitimate organization through bank transfers and cash withdrawals. Financial transactions intensified during the final months of the suspect’s role as legal representative.

Around €2.5 million of the diverted funds was passed through the second association and on to the former legal representative's family members, via bank transfers and cash withdrawals. Almost all of it landed in German bank accounts, where it was reinvested in financial products, businesses, and property purchases and renovations.

Coordination by Eurojust, the European Union Agency for Criminal Justice Cooperation, helped authorities identify 83 bank accounts, two luxury vehicles, 21 properties, and four businesses in Germany belonging to the suspects. The operation has involved prosecutors in Naples and Cologne, Italy’s Guardia di Finanza, and the Court of Naples.

Inquiries into the suspects and the alleged laundering remain ongoing.

The case highlights the exposure of sports organizations to financial crime, with risks also extending to the betting industry. Major tournaments such as the World Cup have recently acted as a magnet for fraud, as surging transaction volumes create opportunities to conceal illicit activity.