By AML Intelligence Correspondents
PORTUGAL’s Novo Banco has fired its chief risk officer, reported its concerns over his conduct to the banking regulator and filed a complaint to the Public Prosecutor’s Office, which has launched an investigation.
The dismissal follows an internal probe into what it described as “suspicious” financial transactions.
Carlos Brandao, who was also an executive board member of the country’s fourth-biggest lender, was dismissed with immediate effect, the Lisbon-based bank said in a regulatory filing on Tuesday.
“This decision was taken following the identification, through the bank’s internal processes, of suspicious financial transactions in this individual’s personal sphere,” Novo Banco said, adding the issue isn’t related in any way to the bank and will have no impact on its activity, finances or clients.
“The suspected issue is not related nor associated, in any way, with the bank”, the bank said on Tuesday, without revealing details of the transactions in question.
The dismissal of Carlos Jorge Ferreira Brandao follows an internal investigation.
Brandao was also a member of the executive board at the bank, which aims to launch an initial public offering in 2025.
The matter “has no impact whatsoever on clients, clients’ accounts or transactions, on bank’s finances or activity, on its commercial operations, risk management system or employees,” the bank said.
Novo Banco was created in 2014 from the remains of collapsed lender BES after a multi-billion-euro government bailout.
The bank, 75% owned by the U.S. fund Lone Star since 2017, said last month it was ready to explore opportunities to go public.
Sources with knowledge of the matter told Reuters in September that Lone Star was considering a sale as well as an IPO.
Brandao joined Novo Banco in July 2017 and has been an executive board member and chief risk officer since September 2022.
On an interim basis, the role of chief risk officer will be undertaken by Chief Executive Officer Mark Bourke, the bank said.
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