Bank of America Settles Brazilian MSB Cases with NY District Attorney

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Friday, December 1, 2006
Author: 
Bruce Zagaris
Volume: 
22
Issue: 
12
462
Abstract: 
On September 27, 2006, Manhattan District Attorney Robert Morgenthau announced an agreement with Bank of America Corporation (BAC) settling two investigations of BAC’s dealings with Brazilian money service businesses (MSBs). The DA’s investigation revealed that BAC failed to sufficiently assess the risk that some South American MSB customers using Brazilian doleiros (MSBs) were conducting illegal activity through a Manhattan office of BAC’s Bank of America, N.A. subsidiary. In particular, Brazilian MSBs were illegally transmitting money via a Uruguayan money remitter’s account at BAC’s Manhattan office. From May 2002 through April 2004, more than $3 billion flowed through the Uruguayan remitter’s account, most coming from offshore shell companies chartered in Panama and the British Virgin Islands and controlled by illegal Brazilian MSBs. ... [more]