Opinion – Panel SA: BC blitz to prevent money laundering catches Votorantim

Votorantim reached an agreement with the Central Bank and will pay R$ 16 million for failures in its procedures to prevent money laundering and the financing of terrorism.

The institution is already the second to be sued by the regulator in a “blitz” to evaluate security mechanisms against crimes. Two weeks ago, Itaú was fined R$ 19 million for the same failures.

With no admission of guilt required, banks will have to present an action plan to the BC with improvements in their crime-fighting mechanisms. This plan will be evaluated by the regulator until it is implemented.

The BC also demanded improvements in the control over foreign exchange operations, especially in the proof of domicile abroad of recipients of remittances. This adjustment must be carried out within six months, according to the decision.

The bank has 30 days to pay the fine to the BC. There are additional penalties. If the deadlines are not met, there will be a daily fine of R$ 5 thousand. And, if the obligations are not complied with, Votorantim will receive a fine of R$ 1 million for each non-compliance.

Sought, Votorantim states that “the procedure avoids discussions in administrative proceedings, without configuring any confession or acknowledgment of illegality.

Through its advisory services, the institution informs that it “continuously strengthens its risk management systems and internal controls, always acting within the highest governance standards”.

At the time, Itaú reported that no serious flaws were found by the BC and that, even so, it decided to sign the commitment “as another step in improving its procedures for the proper use of the National Financial System and the fight against illegal practices”.

Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix