From Caribbean News Now

ST JOHN’S, Antigua — The Office of National Drug and Money Laundering Control Policy (ONDCP) and the Financial Services Regulatory Commission (FSRC) in Antigua and Barbuda have frozen the accounts of a Brazilian-owned offshore bank that has been in operation since 2006, following information from a Brazilian court that found a prima facie case of money laundering by certain Brazilian nationals and companies.

While the government is awaiting a formal request from the Brazilian government for mutual legal assistance, with which it will cooperate within the law and existing international obligations, it said it has taken all appropriate measures, including freezing the accounts of the individuals concerned.

According to informed sources, the bank in question was complicit in the largest corruption scandal ever uncovered in Brazil, which included the alleged involvement of Luis Inácio Lula da Silva, the nation’s president from 2003 through 2010.

The scandal, centering on Petrobras – Petróleo Brasileiro SA, Brazil’s semi-public national oil company – was an enormous matrix of secretive schemes that illicitly channeled billions of dollars to favoured companies and individuals.

The corruption entered the political sphere through the involvement of public office holders who got favoured individuals’ jobs in Petrobras, sometimes in key positions, and received money in return.

 

petrobras_scandal.jpg
Graphic: COHA

 

 

The activities of the Antigua bank reportedly took place between 2010 and 2014 during the tenure of the previous administration and prior to legislative action by the present Antigua and Barbuda Labour Party (ABLP) government to close loopholes in anti-money laundering legislation and in the administration of international offshore banks.

These changes included the passage of the International Banking and International Business Corporation Acts.

In further efforts to tighten up the legislative and enforcement regime, the current government has introduced a new law in parliament to establish common reporting standards (CRS) set by the Paris-based Global Forum to facilitate the automatic exchange of information with other countries.

The legislation will be adopted shortly, setting a high international standard for exchange of information, anti-money laundering and counter terrorism financing.

The Antigua and Barbuda government said in a press statement on Friday that it is firmly resolved to ensuring that the jurisdiction upholds and implements the strongest anti-money laundering regime; is not abused; and poses no financial risk to other jurisdictions.

IMAGE: Petrobras headquarters in downtown Rio de Janeiro. Photo: Ricardo Moraes/Reuters

FOr more on this story go to: http://www.caribbeannewsnow.com/headline-Antigua-Barbuda-freezes-assets-of-offshore-bank-implicated-in-massive-corruption-scheme-31093.html