Finance
Italian prosecutors open BFF Bank false accounting probe, sources say
Published by Global Banking & Finance Review®
Posted on February 16, 2026
2 min readLast updated: February 16, 2026
Quick Summary
Milan prosecutors are investigating BFF Bank for alleged false accounting following a 2024 audit by the Bank of Italy, impacting its financial statements.
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 )
Key Takeaways
- •Milan prosecutors have launched an investigation into BFF Bank.
- •The probe concerns alleged false accounting practices.
- •The investigation follows a 2024 audit by the Bank of Italy.
- •BFF Bank has restated its 2024 accounts due to accounting errors.
- •A 95 million euro one-off charge is under scrutiny.
Frequently Asked Questions about Italian prosecutors open BFF Bank false accounting probe, sources say
1What is false accounting?
False accounting refers to the deliberate misrepresentation of financial information, often to deceive stakeholders or regulators about a company's true financial status.
2What is a financial statement?
A financial statement is a formal record of the financial activities and position of a business, person, or entity, providing a summary of assets, liabilities, income, and expenses.
3What are dividends?
Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits. They can be issued in cash or additional shares.
4What is regulatory compliance?
Regulatory compliance refers to the process of ensuring that an organization adheres to relevant laws, regulations, guidelines, and specifications applicable to its business.
