Panama Bank fingered in Brazil bribery probe

ANOTHER  PANAMA link to the Lava Jato (car wash) bribery scandal that has led to the collapse of Brazil’s government and economy involves  the Panama firm Mossack Fonseca.

The law firm whose activities have sent shock waves around the world served as a vehicle to a person identified in Brazil as a representative of FPB Bank to create offshore companies for customers to hide “dubious” activities, Brazilian officials announced on Thursday, July 7 as part of the investigation.

“The financial institution and the office of Mossack Fonseca were used between different clients to move ‘dirty’ money connected to the Lava Jato investigation,” said federal police according to the Brazilian newspaper Folha.

The researchers detailed that FPB Bank, based in Panama, did not have authorization from the Central Bank of Brazil to operate in the country.

“It acted with the objective of creating accounts in the national territory to facilitate the flow of money of dubious origin to the exterior of the national financial system,” added the Brazilian authorities.

This is at least the third Panamanian bank mentioned in the Lavo Jato investigations, joining Credicorp Bank and Multicredit Bank reports La Prensa.

FPB Bank was registered in Panama in 2004 and and has been licensed by the Superintendency of Banks since May 2005. Its capital is $13.6 million.