Unearthing money laundering at Brazilian oil giant Petrobras
Abstract
Purpose
This paper aims to provide 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 and on 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 laundered money 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, comprising 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 numerous cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoings 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
Acknowledgements
The authors would like to thank Kevin Good for excellent research assistance and to Paulo Knupp for helpful feedback, as well as to the Núcleo de Estudos em Contabilidade e Controladoria (NECC/UFSC). The authors would also like to thank the participants of the 2017 Annual Meeting of the American Accounting Association for their valuable contributions during presentations of this paper.
Citation
Maragno, L. and Borba, J.A. (2019), "Unearthing money laundering at Brazilian oil giant Petrobras", Journal of Money Laundering Control, Vol. 22 No. 2, pp. 400-406. https://doi.org/10.1108/JMLC-03-2018-0027
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited