Italian prosecutors in Milan are currently investigating Luxembourg-headquartered Lombard International Assurance (LIA).
According to judicial sources, the firm is facing allegations of tax evasion and money laundering, reports Italian newspaper Il Sole 24 Ore.
Italy’s tax police, Guardia di Finanza, allege that LIA failed to disclose income worth around €500m (£431m, $590m) to domestic tax authorities.
Additionally, prosecutors are looking into allegations that some of the money Lombard International’s customers invested in insurance policies was obtained illegally.
The judicial sources added that the probe into LIA is part of a wider investigation into other insurance companies following a similar crackdown on the Italian banking sector, which secured more than €300m in revenues for the country’s tax authorities.
A spokesperson for LIA said: “Lombard International Assurance fully complies with all applicable legal, regulatory and fiscal requirements in the jurisdictions where it conducts business.
“LIA works closely with and assists all relevant authorities. LIA operates a branch structure in Italy and complies with all local laws and regulations.”
International Adviser contacted the Guardia di Finanza, but did not receive a comment in time for publication.
