Financial Crime World

Brazil’s BNDES Takes a Stand Against Fraud and Money-Laundering: Prevention Measures and Initiatives

Brazil’s development bank, BNDES, is dedicated to ethical and responsible financial practices domestically and abroad. In alignment with Brazil’s federal government’s international obligations, BNDES prioritizes the prevention of fraud, corruption, money-laundering, and terrorist financing as part of its operations.

Collective Initiatives and Employee Training

BNDES collaborates with various organizations to combat fraud and money-laundering and the financing of terrorist activities (AML/CFT). These partnerships include:

  • The Ethos Institute
  • National Strategy to Combat Corruption and Money Laundering (Enccla)
  • National Forum of Management of Ethics in State-owned Enterprises
  • Commissions of the Brazilian Federation of Banks (Febraban)

BNDES invests in employee training to recognize and prevent these illegal activities.

BNDES’ Integrity Program

BNDES’ Integrity Program encompasses multiple dimensions to ensure robust compliance:

  1. Management Environment
  2. Risk Analysis
  3. Policies and Procedures
  4. Communication and Training
  5. Monitoring, Remediation Measures, and Penalties

Anti-Money Laundering and Combating Terrorist Financing (AML/CFT)

BNDES’ measures to detect and prevent suspicious activities include:

  1. Background analysis of applicants, controllers, shareholders, and related companies
  2. Consultation of national and international databases (e.g., The World Bank, Inter-American Development Bank)
  3. Avoidance of anonymous current accounts and accounts linked to fictitious parties
  4. Scrutiny of financial instruments, parties, amounts involved, financial capacity, and economic activities

Restrictive Measures and Internal Verification

When evidence of money-laundering is discovered, BNDES takes restrictive measures, including:

  1. Blocking stakeholders’ or beneficiaries’ operations
  2. Monitoring improvement suggestions by the compliance unit

Applicable Compliance Documents

All participants in the BNDES System and their associated parties must adhere to the following compliance documents:

  1. Compliance Policy
  2. Integrity Program
  3. BNDES System Corporate Integrity Policy (PCIN)
  4. The Wolfsberg Group Anti-Money Laundering Questionnaire
  5. Policy for Prevention of Money Laundering and Combating Terrorist Financing

Conclusion

BNDES’ comprehensive approach to prevention, detection, and remediation of fraud, deviations, and illegal acts places it at the forefront of financial institutions combating illicit financial activities within the Brazilian financial sector.