Brazil’s federal tax authority and prosecutors are investigating 13 foreign and local banks for possible financial crimes intermediating loans to Brazilian engineering group Schahin, newspaper O Estado de S. Paulo reported on Monday.
The banks under investigation include the investment banking unit of Itau Unibanco Holding SA, Itau BBA, Banco Bradesco SA, Banco Santander SA, HSBC Holdings PLC, Deutsche Bank AG, Votorantim and other smaller Brazilian institutions, Estado reported, citing a tax office document.
The authorities are investigating whether the banks could be accused of money laundering for being originators, coordinators or managers of loans to Schahin. Schahin is currently under investigation by Brazilian authorities for potential fraudulent operations that allegedly benefited the ruling Workers’ Party through state-run oil firm Petroleo Brasileiro SA.
The original article can be found at reuters.com