The rap star, whose real name is Calvin Broadus, was travelling through an airport in Calabria, southern Italy, where he had been performing.
Sums of more than €10,000 ($11,000) must be declared by anyone travelling through airports in the European Union.
Italian police stopped Snoop Dogg on July 31 as he prepared to board a private plane bound for Britain with $422,000 in cash in his Louis Vuitton luggage, said an Italian lawyer representing the entertainer.
Last week, Snoop Dogg was stopped on suspicion of possessing drugs by police in Uppsala, Sweden.
He criticized what he said was “racial profiling” but Swedish police say they have yet to receive the results of tests to see whether Snoop Dogg had drugs in his system.
After stopping him on July 31 as he prepared to board a private plane, Italian police seized half of the $422,000 under money laundering laws, the state news agency Ansa reported.
It is now likely to be returned, with a fine deducted, the Italian financial police say.
Andrea Parisi, a lawyer representing Snoop Dogg, told Reuters: “We clarified everything from a legal point of view. The money came from concerts he had performed around Europe. There was no crime; it was just an administrative infraction.”
Snoop Dogg is scheduled to play the Kendal Calling festival in northern England on August 2.
The rapper has not responded to his latest detention and his current whereabouts are unconfirmed.
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