Police in Sao Paulo said on Monday they had arrested the former head of bankrupt Brazilian lender Banco Cruzeiro do Sul on charges of money laundering and crimes against the country’s financial system and capital markets.
Last month Brazil’s central bank ordered the liquidation of the bank and its subsidiary, Banco Prosper, after seizing the lender on June 4 due to fraud-related losses and after administrators failed to find firm takeover bids.
While it’s not clear what “crimes against the country’s financial system” means, I can think of some recent examples that sure seem at least plausible. Would that there were greater legal mechanisms and deterrents in other countries…
[UPDATE] “Anonymous” in comments points to the Brazilian law regarding “Crimes against the National Financial System.” Among other things, crimes include:
- “Divulging false or prejudicially incomplete information about the financial institution.” [Article 3]
- “Maintaining or moving resources or values parallel to the accounting methods demanded by legislation.” [Article 11]
- “A public official omitting, delaying, or practicing, against the express intent of the law, the necessary official acts to regulate the functioning of the national financial system, as well as the preservation of the interests and values of the economic-financial order.” [Article 23]
Would that such requirements for transparency and regulation existed in other parts of the world.