The Federal Police, in partnership with the Federal Revenue Service, launched the mega-operation called DOLAR TAI-PAN. The estimated losses to the public coffers amount to R$6 billion. The criminals used crypto assets in an attempt to defraud authorities such as the Central Bank and the Tax Authorities themselves.
According to the investigations, the group, which originated in Campinas, in the interior of São Paulo, had moved R$6 billion in the last five years. In addition to the arrests and searches, the Federal Court “ordered the freezing of assets and values in excess of R$10 billion, in more than 200 legal entities”.
image: Federal Revenue
Operation DOLAR TAI-PAN – Mega-operation combats currency evasion through the use of crypto assets
The investigation, which began in 2022, revealed an illegal parallel banking scheme that moved billions within Brazil and in countries such as the United States, Canada, China, and Hong Kong. The system mainly involved the transfer of illicit funds to various international destinations, with the majority of the funds going to China. Thus, one of the fronts of the investigation is focused on fintechs used by the criminal organization.
Suspects and companies linked to the scheme have moved, for example, around R$120 billion in recent years. In the last five years alone, the organization has moved R$6 billion, R$800 million of which this year. According to the PF, the mastermind behind the scheme was looking for ways to open new accounts to move R$2 billion per day.
Police and bank managers involved in the fraud
The scheme involved dozens of people, including police officers, bank managers and accountants, and its main objective was to conceal capital, launder money and transfer funds internationally.
Investigations also indicate a possible connection with criminal organizations, such as drug and arms traffickers. In addition to the arrests and searches, the Federal Court ordered the freezing of assets worth more than R$10 billion, affecting more than 200 companies. Those investigated may be charged with crimes such as criminal organization, money laundering and foreign exchange evasion.
According to the Federal Revenue Service, the operations involve the movement of currency abroad through the process known as dollar-cable, in addition to currency exchange in national territory, use of shell companies, fictitious import operations and directing capital to a company that sells crypto assets.
The investigation revealed that the amounts sent abroad are mainly linked to illicit activities, such as financial pyramids, embezzlement, smuggling, drug trafficking and concealment of slush funds from companies that used the illegal system for international transfers.
At least 15 countries involved
The identified illegal money launderers operate mainly on three main fronts: the unauthorized sale of foreign currency, the provision of resources abroad and the exchange of amounts in national currency. The organization's resources passed through at least 15 countries, including the United States, Canada, China, Argentina, Paraguay, the Netherlands, England, Italy and the United Arab Emirates.
One of the main sources of illicit funds involves the trade of contraband or smuggled goods, especially in São Paulo, where there are cash transactions. To facilitate these operations, criminals create shell companies and use their data to open bank accounts, allowing money launderers to move funds freely.
These money launderers operate in a similar way to financial institutions, also serving legitimate companies, mixing illicit funds with legitimate transactions. In addition, they offer cash or crypto assets abroad to their customers.
The operation resulted in the issuance of 16 preventive arrest warrants and 38 search and seizure warrants in several cities, including São Paulo, Guarulhos, Campinas and Brasília. Around 80 tax auditors and analysts from the Federal Revenue Service, in addition to 200 federal police officers, participated in the operation.
The article PF and Receita dismantle organization that used crypto assets for illicit operations was first seen on BeInCrypto Brasil.