Federal police combat money laundering of Italian mafia money in Brazil

Agents and prosecutors from Brazil’s Federal Police, supported by Italian prosecutors and the European country’s Guardia di Finanza, launched Operation Arancia on Tuesday (August 13).

Police said in a statement that the investigation began in 2022 and focused on a criminal organization suspected of laundering money for the Italian mafia in the Brazilian state of Rio Grande do Norte, where police say the mafiosi have been active for almost a decade.

“The evidence gathered to date indicates that the Italian mafia used shell companies and front men to facilitate the transfer and concealment of illicit funds derived from international criminal activities,” the statement said.

“It is estimated that the scheme invested no less than BRL 300 million (approximately €55 million) in Brazil, using these funds to acquire properties and infiltrate the Brazilian real estate and financial markets,” the agents said.

However, the total value of the invested assets could exceed €500 million at current prices, Italian authorities said.

The operation is said to have resulted in an arrest warrant for “a gangster” and five search warrants in three Brazilian states: Rio Grande do Norte, Rio Grande do Sul and Piauí.

Combined efforts

“The Anti-mafia Directorate of the Palermo District in Italy coordinated 21 searches simultaneously in different regions of Italy and Switzerland. More than 100 Italian financial agents were mobilized, some of whom are in Brazil to help execute the orders in the city of Natal,” the Federal Police stated.

The crimes investigated include mafia collaboration, extortion, money laundering and fraudulent transfer of assets, with the aggravating circumstance of supporting mafia families.

As part of the measures to dismantle the scheme and recover financial assets, federal courts have approved the seizure of properties and the freezing of bank accounts of the defendants and the shell companies involved, federal agents said.

“These efforts are aimed at ensuring the repair of the damage caused by the illegal activities and preventing the continuation of the criminal activities,” the police concluded.