Brazil’s central bank ordered TOV Corretora to liquidate amid allegations it didn’t follow rules to prevent money laundering, making it at least the sixth currency broker in recent months to be forced to close.
The central bank cited “serious violations of legal rules” in a decree ordering the liquidation, published on Thursday. TOV allegedly engaged in foreign-exchange contracts for import and financial transfers abroad for significant amounts that weren’t compatible with the size of its clients, while also not consistently identifying its customers, the central bank’s press office said in an e-mail to Bloomberg News. Pocos de Caldas, Brazil-based TOV declined to comment on the liquidation or the accusations.
“In doing so, the brokerage firm took advantage of its status as an institution of the national financial system to perform illegitimate and atypical transactions,” the central bank said. “It failed to adopt measures required by current regulations aimed at preventing money laundering and terrorist financing.”
The original article can be found at bloomberg.com