Senate creates committee over Brazilian-held HSBC accounts overseas

Brazil's upper house formed today a congressional investigative committee to probe into illicit activities linked to overseas HSBC accounts held by Brazilians. Approximately $7 billion have been deposited in as many as 8 thousand accounts.

The creation of the committee was sparked by data on the accounts, released by the International Consortium of Investigative Journalists.

Senators Paulo Rocha, of the ruling Workers' Party (PT), and Randolfe Rodrigues, of the Socialism and Freedom Party (PSOL), were elected respectively president and vice-president of the team, on Tuesday. Senator Ricardo Ferraço, of the Brazilian Democratic Movement Party (PMDB), from the government's base, is to work as rapporteur in the case.

“This is not a witch-hunt, the [committee] should first spot the faults in the Brazilian tax system which make such large-scale—and likely—case of tax evasion possible,” the vice-president said.

Apart from misappropriation, the team will look into the link between the deposits and money embezzlement as well as other crimes probed into by the Federal Police as part of its Operation Car Wash, targeting Petrobras contracts.

This congressional investigative committee is made up of 11 senators and 11 substitutes, and has 180 days to conclude its investigations.

Translated by Fabrício Ferreira