Federal Police has been authorized by the Brazilian Government to use full force against activities of money laundering taking place on the basis of cryptocurrencies. Police have been asked to initiate a full-scale crackdown operation against such activities in an effort to bring the criminals before trial. So far operations are going on in 5 major cities of the country where the police have been given warrants of arrests and seizures. The crackdown initiative has been named “Operation Compliance” which has stemmed from an ongoing investigation that led the police to the crimes committed on the basis of virtual assets.
The Federal Police of Brazil was ordered to carry out raids in certain locations which the authorities believe are breeding grounds for crypto criminals. Police were given warrants of arrests, searches, and seizures in order to catch the persons involved in money laundering. The authorities are of the view that these specific areas are harboring crypto fraudsters who are linked with money laundering activities. The police came to know of their hideouts when the Federal Police was investigating a case. While the investigation of that particular case was going on, the police found clues leading to money laundering activities.
In an effort to catch the culprits involved in money laundering activities, the Brazilian Government has sanctioned a full-scale police operation. The operation has been named “Operation Compliance”. So far raids are being carried out in five major cities of Brazil. These cities include Laranjal Paulista, Vitoria, Goiania, Sao Paulo, Recife and Campo Grande. So far 34 operations of seizure and search have been conducted by a total of 150 Federal policemen.
The operation does not end at search and arrest instead police have been further authorized to block bank accounts. On the basis of suspicion, Brazilian Federal Police has been given unbridled power to close any account which they may think fit. It has been reported that for the time being 30 accounts belonging to multiple individuals have been blocked. Banks too have been warned to freeze the funds immediately and provide the data relating to owners of these closed accounts. However, how many funds are lying in these 30 accounts and who are the owners of the accounts, haven’t been disclosed by the police. The information has been kept secret so as not to make aware of the criminals otherwise they will flee, said Police Chief.
Operation Compliance has been launched after a period of three years. It was in the year 2018 when a case came up for investigation before the Federal Police. This case is still an unsolved case that involved fake bank accounts and huge funds were coming in and out of these accounts. Upon investigation, the police found that the accounts were opened in the names of persons who were from a poor backgrounds. This gave rise to a suspicion that the original beneficiaries of these accounts were unknown people.
The operation is continuing with full force and several arrests have been made. The police have said that in a day or two it will be issuing an official statement.