The two suspects ran the money transfer service in the northern Italian city of Brescia, the reports citing anti-terrorist police said, adding the arrests came after a nearly year-long investigation.

They are accused of having carried out a money transfer under a false name to pay fees for an Internet telephone service used by suspects in contact with the Mumbai attackers, according to the reports.

Accusations against them include concealment and illegal financing activity.

Authorities opened the investigation in December last year after receiving information from US and Indian authorities.

The November 2008 attacks in India's economic capital killed 166 people, with India and Washington blaming the siege on Pakistan's banned militant group Lashkar-e-Taiba. Ten gunmen had carried out the 60-hour assault.

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