Brazil Exclusive: the Money Laundering Scandal From Hell No One Wants to Talk About
Two decades after the fact, a political earthquake that should be rocking Brazil apart is being met with thunderous silence.
What is now described as the Banestado leaks and the CC5gate is straight out of vintage WikiLeaks: a list, published for the first time in full, naming names and detailing what is one of the biggest corruption and money laundering cases in the world for the past three decades.
This scandal allows for the healthy practice of what Michel Foucault characterized as the archeology of knowledge. Without understanding these leaks, it’s impossible to place in the proper context the sophisticated Hybrid War unleashed by Washington on Brazil initially via NSA spying on President Dilma Roussef’s first term (2010-2014), all the way to the subsequent Car Wash corruption investigation that jailed Lula and opened the way for the election of neofascist patsy Jair Bolsonaro as President.
The scoop on this George Orwell does Hybrid War plotline is due, once again, to independent media: the small website Duplo Expresso, led by young, daring Bern-based international lawyer Romulus Maya, which first published the list.
An epic 5-hour podcast assembled the three key protagonists who denounced the scandal in the first place, back in the late 1990s, and now are able to re-analyze it: then Governor of Parana state Roberto Requiao; federal prosecutor Celso Tres; and police superintendent, now retired, Jose Castilho Neto.
Previously, in another podcast, Maya and anthropologist Piero Leirner, Brazil’s foremost analyst of Hybrid War, briefed me on the myriad political intricacies of the leaks while we discussed geopolitics in the Global South.
The CC5 lists are here, here, and here. Let’s see what makes them so special.
The mechanism
Way back in 1969, the Brazilian Central Bank created what was described as a “CC5 account” to facilitate foreign companies and executives to legally wire assets overseas. For many years the cash flow in these accounts was not significant. Then everything changed in the 1990s – with the emergence of a massive, complex criminal racket centered on money laundering.
The original Banestado investigation started in 1997. Federal prosecutor Celso Tres was stunned to find that from 1991 to 1996 no less than $124 billion in Brazilian currency was wired overseas. Between 1991 and 2002 that ballooned to a whopping $219 billion – placing Banestado as one of the largest money laundering schemes in history.
Tres’s report led to a federal investigation focused in Foz do Iguacu in southern Brazil, strategically located right at the Tri-Border of Brazil, Argentina and Paraguay, where local banks were laundering vast amounts of funds through their CC5 accounts.
Cont. from images:
What will Lula do?
As it stands, as a development of the Banestado leaks, a first Banestado “VIP list” was gathered. It includes the current President of the Supreme Electoral Tribunal, who also serves as a Supreme Court Justice, Luis Roberto Barroso, bankers, media tycoons and industrialists. Car Wash prosecutor Deltan Dallagnol happens to be very close to the neoliberal Supreme Court Justice in question.
The VIP list should be read as the road map for the money laundering practices of the Brazilian 0,01% – roughly estimated to be 20,000 families who own the close to one trillion dollar Brazilian internal debt. A great deal of those funds had been recycled back to Brazil as “foreign investment” through the CC5 scheme back in the 1990s. And that’s exactly how Brazil’s internal debt exploded.
Still no one knows where the Banestado-enabled torrent of dodgy money actually landed, in detail. The “body bag” was never formally acknowledged to have been brought back from New York and never made its way into the criminal proceedings. Yet money laundering is still in progress – and thus the limitation period does not apply – so somebody, anybody would have to be thrown in the slammer. It doesn’t seem that will be the case anytime soon, tough.
Meanwhile, enabled by the U.S. Deep State, transnational finance and local comprador elites, some in uniform, some in robes, the slow motion Hybrid War coup against Brazil keeps rambling on. And day by day inching closer to full spectrum dominance.
Which bring us to the key, final question: what will Lula do about it?
https://www.strategic-culture.org/news/2020/07/23/brazil-exclusive-the-money-laundering-scandal-from-hell-no-one-wants-to-talk-about/