Brazil central bank liquidates REAG for 'serious rule violations'
Tweet
Share
E-mail
A person walks in front of the Central Bank of Brazil headquarters building in Brasilia, Brazil December 17, 2024. REUTERS/Adriano Machado
BRASILIA/SAO PAULO, Jan 15 (Reuters) - Brazil's central bank ordered on Thursday the liquidation of brokerage REAG, currently known as CBSF, according to a document signed by Governor Gabriel Galipolo, in the latest fallout from the collapse of mid-sized lender Banco Master.
The move "was prompted by serious violations of the rules governing the activities of institutions that are part of the national financial system", the central bank said in a statement.
Brazil's federal police on Wednesday added REAG founder Joao Carlos Mansur to its list of targets in an investigation into alleged fraud at Banco Master, which was placed into liquidation in November.
REAG was allegedly involved in fraudulent fund transfers identified by the central bank in connection with Master's collapse.
The company last year had also been targeted by search warrants in a separate police crackdown on multibillion-dollar money laundering and fraud schemes linked to organized crime in the fuel sector.
According to the central bank, REAG/CBSF represents less than 0.001% of the total adjusted assets of Brazil's financial system.
(Reporting by Marcela Ayres, Bernardo Caram and Gabriel Araujo,Editing by Tomasz Janowski and Ed Osmond)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- US HHS launches initiative to improve response to missing autistic individuals
- Artificial intelligence could push up inflation - SNB's Tschudin says
- First migrants buried in Spain's Ceuta after deadly border rush
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
