Money Laundering

Arab News | Corruption probe targets Brazil presidential candidate Flavio Bolsonaro

BRASILIA: Revelations that Brazilian presidential candidate Flavio Bolsonaro is under investigation for alleged corruption and money laundering rocked his right-wing campaign Friday, weeks before elections.

Bolsonaro, the son of former leader Jair Bolsonaro, is vying for the presidency against leftist incumbent Luiz Inacio Lula da Silva in the October ballot.

A newly released court document revealed that police have been investigating Flavio Bolsonaro since July regarding possible crimes “in the context of financing the production” of a forthcoming film about his father.

Police conducted dozens of raids Thursday over the alleged embezzlement of public funds by the company that produced the flattering biopic.

“Dark Horse” — starring US actor Jim Caviezel as Jair Bolsonaro — has been under scrutiny as part of a widening corruption scandal that has loomed over the election.

“I have nothing to hide. The film is completely legal,” Flavio Bolsonaro said at a campaign event on Friday.

An investigation of this kind does not prevent someone from running for office in Brazil.

Voters in Latin America’s largest economy head to the polls on October 4, deeply polarized and with a weary sense of deja vu as Lula takes on Bolsonaro.

The 45-year-old senator Flavio Bolsonaro was thrust into the electoral race after his father was jailed for attempting a coup in 2022.

He has styled himself as a “more moderate” version of his firebrand father.

Neck and neck

The right-wing candidate has vowed to “rescue” Brazil from corruption, crime, high food prices and soaring public debt. His speeches are woven through with references to “God, country, family and freedom.”

He has also pledged a heavy hand on crime, which polls show is voters’ main concern.

While Lula has promised to prioritize the fight against organized crime, his challenger blames him for not taking violence seriously enough.

Bolsonaro’s campaign has been hit by disclosures that he approached notorious fraud-accused banker Daniel Vorcaro — head of the collapsed private bank Banco Master — for money, which Bolsonaro said was to finance “Dark Horse.”

According to court documents obtained by AFP, investigators believe Flavio Bolsonaro personally met with Vorcaro and discussed the film’s financing with him on several occasions.

The documents also point to the transfer of $12.3 million from a company indirectly linked to Vorcaro to another tied to an attorney for Eduardo Bolsonaro, Flavio’s younger brother.

A police source told AFP that the targets of Thursday’s raids included Karina Gama, head of the company that produced “Dark Horse,” and Mario Frias, a pro-Bolsonaro congressman listed as the film’s executive producer.

Both have been banned from leaving Brazil pending the investigation’s outcome. Frias has said he is innocent, denouncing the “smoke screen” probe.

Police officials said the money came from parliamentary funds available to lawmakers to finance special projects, usually in their electoral strongholds.

Vorcaro’s alleged interactions with Supreme Court Judge Alexandre de Moraes, whom he apparently asked for legal help days before his arrest, have meanwhile triggered a crisis in Brazil’s top court.

“The impact of corruption scandals is much greater for Lula’s campaign than for Flavio’s,” said political scientist Mayra Goulart from the Federal University of Rio de Janeiro.

However, new evidence against Bolsonaro closer to the election could influence “voters whose choice is less clearly defined,” she told AFP.

Lula was imprisoned for 580 days on corruption charges in 2018 and 2019, but his conviction was later overturned.

He and Flavio Bolsonaro are neck-and-neck in voting intentions ahead of the first round.

If, as expected, no one wins an outright majority, a runoff will be held on October 25.



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US imposes sanctions on Turkish bank, prompting legal threat | Banks News

US sanctions Turkish bank over alleged IRGC ties, accusing it of facilitating millions in transactions for Iran.

The United States Treasury Department has imposed sanctions on a Turkish bank and its subsidiaries over alleged ties to Iran, as Washington seeks to economically isolate Tehran.

The Treasury Department accused Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) on Friday of facilitating “tens of millions of dollars’ worth of transactions for the Islamic Revolutionary Guard Corps-Qods Force” and providing the Iranian government with banking access to move its funds internationally.

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Washington alleged the bank “was established for the purpose of enabling Iran’s rahbar network [shadow banking system] to transfer oil revenues from China to Turkey” using gold and cash.

Golden Global Bank responded on Friday, saying it fulfilled all local and international banking compliance rules and would take legal action against the US-imposed sanctions.

There are no transactions conducted by Golden Global Bank that could substantiate the claims made by the US, the bank said in a news release.

“We will exercise all our rights of objection and legal recourse in the most effective manner and will take the necessary actions at the earliest against these allegations and the decision,” the Turkish bank added.

“Financial institutions continue to find out the hard way that we are serious about Operation Economic Outcast,” said Secretary of the Treasury Scott Bessent in a statement published by the department on Friday.

The sanctions place the bank and its two subsidiaries on the US Office of Foreign Assets Control (OFAC)’s Specially Designated Nationals list, cutting off access to the US financial system.

The bank said individuals and entities named in the OFAC decision “have never been and are not currently customers” of Golden Global.

US Ambassador to Turkiye Tom Barrack said on Saturday that it would be a mistake for Turkish officials “to read [the US’s] narrow measure as a judgement upon Turkiye”.

“The health of the Turkish financial system is not in question; the conduct of one institution was,” Barrack said on X.

Last week, the US took steps towards severing the UAE operations of Egypt’s second-largest bank from financial access after accusing it of processing transactions for companies linked to Iran’s shadow-banking system.

Bessent said on Tuesday on the sidelines of a G20 summit that Washington would likely announce a bank sanction this week and another next week, as it ramps up its economic campaign against Tehran.

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