Brazil Unlikely to Feel Impact of New US$2 Trillion Banking Scandal Involving Giants

RIO DE JANEIRO, BRAZIL – With strict rules, Brazil should not be impacted, at least for now, by the new banking scandal involving giants like HSBC and Deutsche Bank in illegal transactions worth US$2 trillion (R$10 trillion), according to a Brazilian Central Bank source.

However, a potential strengthening of global standards to prevent money laundering could have repercussions here, as has occurred in recent years.

“I don’t see much of an impact for now, unless this has been a trigger for other crises abroad,” says the Central Bank source. “Here, our rules are strict and our supervision is good.”

Money laundering prevention rules have recently been upgraded in Brazil. The Central Bank‘s regulations on procedures and internal controls to be followed by banks in Brazil will come into force next month.

According to the Central Bank’s circular, procedures for learning about clients have been refined.

Thus banks have to cross-check identification information, the qualification and classification of their account holders, risk profile, nature of the business, with the institution’s policy of preventing money laundering and terrorist financing, and with its internal risk assessment.

The Central Bank has not officially commented on the matter.

Source: Estadão Conteúdo

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