Unearthing money laundering at Brazilian oil giant Petrobras

Lucas Maragno and José Alonso Borba

Journal of Money Laundering Control, 2019, vol. 22, issue 2, 400-406

Abstract: Purpose - This paper aims to provide an overview of key points pertaining to financial crimes taking place during the single largest fraud scandal in Brazilian history. The authors provide details on how the historic fraud was carried out at Petrobras, as well as an overview of recent anti-money laundering regulation in Brazil. Design/methodology/approach - The paper is based on an analysis of the scandal and on legal ramifications enacted by the prevailing Public Ministry taking place through the “Lava Jato” operation. Findings - Fraud perpetrators continue to find new ways to move laundered money into campaign finance. The authors provide details on how the scheme was perpetrated at the placement, layering and integration stages. Research limitations/implications - This study comprehends the first stage of the Federal Police’s operation, comprising 14 allegations of financial crimes. Practical implications - A disconnect between regulations in effect and the reality of money laundering in Brazil over several years has failed to impede numerous cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoings being investigated. Originality/value - The Petrobras fraud, individual experiences of organized financial crime and a widespread lack of understanding of how to detect and prevent fraud on this scale.

Keywords: Money laundering; Fraud; Petrobras (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jmlcpp:jmlc-03-2018-0027

DOI: 10.1108/JMLC-03-2018-0027

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