€30 Million Laundering Network Uncovered Between France and Italy, 55 Gold Bars Seized

Authorities have uncovered a sprawling criminal operation that laundered €30 million in drug trafficking profits between France and Italy, converting the cash into gold before exporting it through Kosovo and Turkey. The network, coordinated by individuals of Kosovar and Middle Eastern origin, oversaw a sophisticated system for collecting cash, transporting it, and transforming it into physical assets. The case, initiated by intelligence from Milan’s financial investigators at the end of 2024, evolved into a joint French–Italian operation involving hundreds of officers and the support of judicial authorities.

Large volumes of cash were collected in Marseille, Lyon, Paris, and other urban centers before being transported to Italy. Syrian and Maghrebian teams handled the physical smuggling, using vehicles equipped with sophisticated hidden compartments to evade detection. Once the funds reached Milan, they were systematically converted into gold bars, chosen for their portability, liquidity, and capacity to obscure illicit origins. The gold was then exported to Kosovo and Turkey, taking advantage of the dense gold markets in these regions, where enforcement gaps and high trade volumes provided opportunities for laundering.

The operation demonstrates the adaptability of organized crime. Despite years of tightening banking regulations, criminal networks continue to exploit physical channels and commodity markets to recycle illicit funds. By combining traditional bulk cash smuggling with precise logistical planning, the network established an efficient laundering pipeline spanning multiple jurisdictions.

Narcotics trafficking served as the financial engine of the operation. The laundering network was directly connected to groups already known to French authorities, including the DZ Mafia from Marseille, a long-standing player in drug supply and distribution. Weekly drug sales generated liquidity that required immediate laundering to avoid exposure. Between October 2024 and August 2025, the network handled more than €30 million in cash.

Investigators traced weekly pick-ups in Marseille and its suburbs, extending to Lyon, Paris, and northern Italy. Cash was transported in specially modified vehicles, often carrying hundreds of thousands of euros at a time, with couriers following precise schedules to maintain a steady flow—a hallmark of organized laundering linked directly to predictable drug revenues. Upon crossing into Italy, the cash was exchanged for gold through complicit dealers or intermediaries. Gold, favored by drug trafficking organizations, consolidates value, reduces detection risk, and can be sold in high-liquidity markets such as Istanbul and Pristina. The 55 one-kilogram gold bars seized during the investigation represented only a fraction of what had likely already circulated undetected.

The DZ Mafia connection was significant, with several couriers having previous narcotics convictions and suspected involvement in parallel drug supply chains. By embedding laundering operations directly within the narcotics economy, the network minimized reliance on outsiders and kept illicit profits under the control of the group, allowing for rapid expansion while maintaining resilience against infiltration.

Cash smuggling remained the backbone of the operation. Syrian and Maghrebian teams concealed funds in vehicles, employing engineering expertise to create hidden compartments capable of bypassing inspections. Convoys moved across borders on set schedules, sometimes toward Spain, sometimes to northern Italy. On September 7, authorities intercepted one convoy, seizing 55 kilograms of gold and over €2.4 million in cash. Seven individuals were arrested and placed in pre-trial detention.

Just weeks later, coordinated raids on September 23 across Marseille, Vitrolles, Marignane, Martigues, and several Italian cities led to twelve additional arrests. Investigators recovered €219,000 in cash, five vehicles, luxury handbags, watches, and jewelry, confirming the network’s diversification of laundering channels beyond gold into high-value goods that could be resold or transferred abroad with minimal detection.

Kosovo and Turkey were chosen as destinations for gold due to their vibrant markets, high transaction volumes, and combination of formal and informal trade networks. Kosovo’s geographic position in the Balkans provides access to regional markets with variable regulatory oversight, while Turkey hosts one of the largest global gold markets, where bullion can be quickly sold and reintegrated into legitimate commercial flows. Moving gold to these jurisdictions created multiple exit points for illicit value, making it nearly impossible to trace once melted, recast, or sold in wholesale markets.

Gold has long been used as a laundering tool because it can be melted, alloyed, or converted into jewelry, erasing serial numbers and obscuring provenance. Once transformed, the gold becomes indistinguishable from legitimate supply, allowing illicit proceeds to re-enter the economy disguised as trade. The Marseille–Milan operation illustrates this typology, combining cash smuggling, commodity conversion, and cross-border export into a single, highly efficient laundering pipeline.

The case highlights the growing importance of physical laundering channels at a time when digital transactions face stringent scrutiny. While European financial institutions comply with strict AML directives, the precious metals sector remains vulnerable. Dealers, refiners, and jewelry manufacturers are subject to due diligence rules, but enforcement is inconsistent, and monitoring is weaker than in banking. Criminals exploit these gaps, leveraging the anonymity of commodity transactions to bypass traditional suspicious activity reporting.

The success of the operation relied on unprecedented international cooperation. French and Italian authorities coordinated intelligence to intercept convoys and execute simultaneous raids. Seizing over €2.6 million in cash, 55 kilograms of gold, and luxury assets sent a strong message, yet the broader lesson is clear: without international collaboration, networks spanning France, Italy, Kosovo, and Turkey would remain largely untouchable.

For compliance professionals, the Marseille–Milan case provides several lessons. Vigilance must extend beyond financial institutions to include precious metals and luxury goods dealers. Monitoring should consider physical smuggling, as movement patterns and trade anomalies reveal risks invisible to transaction-based systems. Enhanced scrutiny of cross-border trade to high-risk jurisdictions is essential, particularly for commodities like gold.

While authorities successfully disrupted this network, the laundering methods it employed remain active worldwide. Gold, luxury goods, and physical cash continue to serve as conduits for illicit funds until AML frameworks achieve full alignment across sectors and jurisdictions. The Marseille–Milan case demonstrates both the progress achieved and the challenges that remain.

By fLEXI tEAM