Unearthing Money Laundering at Brazilian Oil Giant Petrobras

Journal of Money Laundering Control, Forthcoming

8 Pages Posted: 27 Nov 2018 Last revised: 18 Jan 2019

See all articles by Lucas Maragno

Lucas Maragno

Federal University of Santa Catarina - UFSC

Jose Alonso Borba

Universidade Federal de Santa Catarina (UFSC) - Accounting Department

Date Written: January 4, 2018

Abstract

Purpose – This paper provides an overview of key points pertaining to financial crimes taking place during the single largest fraud scandal in Brazilian history. The authors provide details on how the historic fraud was carried out at Petrobras, as well as an overview of recent anti-money laundering regulation in Brazil.

Design/methodology/approach – The paper is based on an analysis of the scandal, as well as legal ramifications enacted by the prevailing Public Ministry taking place through the “Lava Jato” operation.

Findings – Fraud perpetrators continue to find new ways to move money laundering into campaign finance. The authors provide details on how the scheme was perpetrated at the placement, layering and integration stages.

Research limitations/implications – This study comprehends the first stage of the Federal Police’s operation, comprised of 14 allegations of financial crimes.

Practical implications - A disconnect between regulations in effect and the reality of money laundering in Brazil over several years has failed to impede several cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoing being investigated.

Originality/value – The Petrobras fraud, individual experiences of organized financial crime, and a widespread lack of understanding of how to detect and prevent fraud on this scale.

Keywords: Petrobras, Money laundering, Fraud

JEL Classification: M00

Suggested Citation

Maragno, Lucas and Borba, Jose Alonso, Unearthing Money Laundering at Brazilian Oil Giant Petrobras (January 4, 2018). Journal of Money Laundering Control, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3278473

Lucas Maragno (Contact Author)

Federal University of Santa Catarina - UFSC ( email )

Brazil

Jose Alonso Borba

Universidade Federal de Santa Catarina (UFSC) - Accounting Department ( email )

Campus Reitor João David Ferreira Lima
Bairro Trindade
Florianopolis, SC Santa Catarina 88040
Brazil

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