Brazilian authorities are investigating the Banco Luso Brasileiro (BLB) for potential involvement in laundering money for the Primeiro Comando da Capital (PCC), Brazil’s largest criminal organization, according to investigations revealed in recent days.
The inquiry, launched by the São Paulo Public Prosecutor’s Office, centers on deposits exceeding 20 million reais (approximately 3.24 million euros) made in 2015 into an account held by MJS Participações, a holding company linked to the Transwolff bus company. Authorities allege Transwolff used the BLB to launder funds for the PCC, employing a tactic known as “smurfing” – breaking large sums into smaller transactions to evade detection, according to Brazilian portal UOL.
The Banco Luso Brasileiro, where the Amorim family holds a 32.8% stake, disputes the allegations. The bank claims the transactions were related to “a series of absolutely trivial financing operations to small bus operators” operating as subcontractors for a municipality-contracted company. The bank stated the contracted company was listed as an approver in the contracts “for this reason.”
The investigation comes as the Banco Central do Brasil (BC) has initiated a supervisory action to assess the BLB’s conduct related to the alleged scheme.
The Amorim family’s involvement with the BLB dates back to 2012, when they initially acquired a 33% stake in the financial institution. In the first two and a half years of co-leadership under Américo Amorim, the bank accumulated losses of 106.2 million reais (approximately 17.2 million euros). More recently, the family reduced its ownership from 49.2% to 32.8%, allowing for the entry of the Brazilian Mônaco group as a shareholder. The RC Participações family, now holds a 41% stake, becoming the largest shareholder in the bank.
The BLB has been profitable in recent years, accumulating profits for a dozen years, but has not paid dividends. The Portuguese business publication Jornal de Negócios reported on the bank’s record profits without dividend payouts.
