Panama bank targeted by police operation in Brazil

Brazil's Federal Police launched stage 32 of Operation Car Wash Thursday (Jul. 7) to investigate a Panama bank that had operated illegally in Brazil without Central Bank permission, and traded offshore companies.

The bank's customers include existing suspects in the probe into the Petrobras corruption scandal, which led police to conclude that the bank has handled graft money embezzled from Petrobras. About 60 police officers have served court orders and search warrants in three cities in São Paulo state, Brazil.

According to investigators, the Panama bank operated as a business agent for banking services outside the legal boundaries of the Brazilian financial system to facilitate offshore remittances of illegal funds. The services included dealing of offshore companies registered with Panama's Mossack Fonseca law firm.

Mossack Fonseca, which has been targeted by Operation Car Wash before, is at the center of a global scandal known as the Panama Papers, an asset concealment scheme used by hundreds of officials and celebrities from dozens of countries, which was revealed this year by an international consortium of journalists.

At stage 32 of Operation Car Wash, Brazil's Federal Police investigate financial crimes, money laundering, and international criminal organization.

Translated by Mayra Borges