By Emilio Parodi MILAN, Feb 16 (Reuters) - Milan prosecutors have opened an investigation into alleged false accounting at Italian specialist lender BFF Bank, two sources with direct knowledge of the
Milan Prosecutors Launch Investigation into BFF Bank's Accounting Practices
Investigation Overview and Implications
By Emilio Parodi
Details of the Probe
MILAN, Feb 16 (Reuters) - Milan prosecutors have opened an investigation into alleged false accounting at Italian specialist lender BFF Bank, two sources with direct knowledge of the matter said on Monday.
Impact on BFF Bank's Operations
The prosecutors are investigating the accuracy of BFF's financial statements, the two sources told Reuters, adding that the probe follows a mid-2024 on-site audit by the Bank of Italy.
Responses from BFF Bank
A representative for BFF said in an emailed statement to Reuters that the bank did not comment on press rumours. News of the probe was first reported by Italian daily Milano Today Dossier.
The Bank of Italy imposed a ban on BFF paying dividends to shareholders after its 2024 audit, challenging the way the bank classified overdue public sector loans, in particular how it counted the number of days they were in arrears.
The probe by Milan prosecutors includes BFF's market disclosure earlier this month of a 95 million euro ($113 million) one-off charge, the sources said, adding that no individuals were currently under investigation.
BFF specialises in buying suppliers' receivables at a discount — known as factoring — and then collects the full amount from the public sector entities when they eventually settle their bills.
It said on February 2 it had restated its 2024 accounts after identifying a mistake in the way some 54 million euros in factoring proceeds had been booked prior to June 2023.
Additionally, it said it would book about 95 million in one-off charges in 2025, mostly provisions on receivables tied to negative court rulings it has appealed, and additional costs linked to longer expected collection times.
($1 = 0.8436 euros)
(Additional reporting by Valentina Za; Editing by Alexander Smith )
