MILAN: A formal investigation has been launched into last year’s sale of AC Milan by Silvio Berlusconi’s holding company to a Chinese group.

A judicial source quoted by local media said that a preliminary inquiry had been approved.

Berlusconi, who served four times as prime minister, sold the club in April 2017 for €740m to a Rossoneri Sport Group consortium led by Chinese businessman Yonghong Li and quit the role of as president he had held for more than 30 years.

He had bought the club in the 1980s, rescued it from near-bankrupcty and financed its rise to the pinnacle of world, European and Italian football,.

Criminal finance investigators reportedly submitted a report to the prosecutor’s office before Christmas.

Financial institutions are obliged to notify the Bank of Italy of transactions in which there is “reasonable cause to suspect” financial crimes such as money laundering have been committed or attempted.

The central bank then sends these notifications to the finance police, which compiles a report that is sent to a prosecutor, who must decide whether to open an investigation.

It is understood that progress was delayed because of the recent Italian general election.

In February Li denied reports that he and his ownership consortium had been declared bankrupt in China over unresolved bank loans.

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