Catholic Church officials in Greece have been accused of sending more than €3m (£2.5m) of embezzled money to be laundered through cafes and nightclubs.

An investigation by Greece’s Anti-Money Laundering Authority, which has uncovered that the Catholic Church’s money was used to fund Greek nightlife, has already frozen the bank accounts and assets of five nightclub owners in the southern region of Peloponnese.

According to Euronews, the case goes back eight years ago, when the first unusual transaction to one of the five private individuals, disguised as an ordinary investment, took place.

The most recent suspected illegal transfer of €50,000 occurred just a few days ago.

The case, which began as a random audit, has been sent to the chief prosecutor’s office for further criminal investigation. The prosecutor’s office is next expected to question the seven over alleged embezzlement and money laundering and open felony proceedings.

In response to the allegations, the Catholic Church in Greece said in a statement on Thursday that it was unaware of the two priests’ actions.

“Following today’s press reports on embezzlement and money laundering, we declare that we have no official information on the issue. Therefore, we are awaiting an update from the relevant authorities so that we can take an official position on the matter,” it said.