Luxembourg/Rome. An Italian businessman has been arrested in connection with an alleged VAT carousel fraud and money laundering network following an investigation led by the European Public Prosecutor’s Office. Authorities also ordered an urgent asset freeze exceeding €4.6 million, approximately ₹41.8 crore, as investigators examine suspected fake invoices, shell companies and cross-border fund flows.
Arrest Made at Venice Airport
According to officials, the suspect was detained at Venice Marco Polo Airport while attempting to board a flight to Dubai. The arrest was carried out by Italy’s Financial Police, the Guardia di Finanza, at the request of EPPO’s Venice office.
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Authorities said the arrest was ordered amid concerns that the suspect could leave the country during the ongoing investigation. The probe originated from a wider inquiry into a VAT carousel fraud scheme involving fake invoices and fictitious commercial transactions.
Shell Company and Cross-Border Transfers Under Scanner
Investigators identified the businessman as a key figure allegedly involved in laundering and transferring illicit proceeds abroad. EPPO officials said the suspect frequently travelled between Italy and the United Arab Emirates and allegedly collected cash generated by the fraud network.
The proceeds were reportedly moved through structured financial channels to conceal their origin and avoid anti-money laundering detection. Investigators also found that funds were allegedly reinvested through a Slovenia-based company linked to the suspect, which authorities said showed no genuine business activity and appeared to function as a conduit for fund movement.
Crypto Wallet, Cash and Luxury Vehicle Seized
Officials said the alleged scheme involved simulated import-export operations, with goods shown as being imported from China, Türkiye and the United Arab Emirates before being resold to Italian companies. This structure allegedly enabled fraudulent VAT credits and illegitimate tax refunds.
During searches at the time of arrest, investigators seized a cryptocurrency wallet valued at around €756,000, approximately ₹6.9 crore, €6,000 in cash, approximately ₹5.5 lakh, and a luxury vehicle. The arrest and seizure order were later confirmed by the Judge for Preliminary Investigations in Venice.
Authorities said the investigation remains ongoing, and further arrests or asset seizures cannot be ruled out. The suspect is presumed innocent until proven guilty in a competent court in Italy.
