Portuguese authorities are examining more than 20 individuals linked to a Novo Banco SA real-estate transaction after a fresh round of raids on the bank, according to multiple news reports.
Investigators searched the premises of Portugal’s fourth largest bank and a local unit of KPMG on Wednesday as part of a probe into the sale of the lender’s assets, Reuters said citing Portuguese prosecutors. Officials are reviewing seized computer data and investigating individuals tied to the bank, several law firms, real-estate companies, and other businesses, Bloomberg reported.
Prosecutors said the searches are part of an investigation into alleged corruption, fraud, and money laundering tied to sales of Novo Banco assets since 2018, when the bank was owned by U.S. private-equity firm Lone Star, according to the Bloomberg report.
“The facts in question are likely to constitute the crimes of active and passive corruption in the private sector, aggravated fraud, and money laundering, in the context of the sale of Novo Banco’s assets since 2018,” the prosecutor’s office said in a statement cited by Reuters.
The action marks the second publicly known investigation touching Novo Banco this year. In January, the bank dismissed its chief risk officer after what it described as “suspicious” financial transactions, Bloombergsaid. At the time, prosecutors searched locations and seized documents related to alleged tax fraud, money laundering, and forgery by a board member who was not identified.
The latest raids coincided with the completion of the government’s sale of its remaining stake in Novo Banco, finalizing the bank’s takeover by France’s Groupe BPCE SA.
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