Banks in the crosshairs of Operation Car Wash
Many analysts of Operation Car Wash wondered when the anti-corruption probe would hit the banking system. That moment seems to have arrived. Yesterday, federal marshals carried out operations to arrest the managers of two Bradesco bank branches in Rio—accused of helping to launder almost BRL 1bn through operations using shell companies.
Investigators say that another three banks were used, but none to the extent of Bradesco: Itaú (in which BRL 94m were laundered), Santander (BRL 19m), and Caixa (BRL 4m). Bradesco said it has opened an internal investigation. Yesterday’s operation was a follow-up of one carried out a year ago, which arrested 50 professional money launderers.
Close observers of Operation Car Wash say that the thread exposed by yesterday’s operation is only the beginning of what could be a probe as explosive to the banking system as Operation Car Wash initially was to the construction sector. The accounts scrutinized at this stage belonged to one corrupt businessman—many others are still being analyzed.
Meanwhile, executives at Odebrecht have listed 11 banks (2 Brazilian and 9 foreign) which helped the company handle money used to bribe...