Regulatory Weakness Highlighted in Financial Fraud: Mercadante’s Warning

At the J. Safra Investment Conference, Aloizio Mercadante, president of BNDES, highlighted the fragility of regulation and supervision exercised by the Central Bank (BC) and the Securities Commission (CVM). According to him, these authorities need to strengthen their actions to prevent financial frauds and risks to the National Financial System. In his view, when the situation at Master reached a 'high level', the BC already had sufficient information to act, but did not do so. Additionally, Mercadante argued for stricter regulation of fintech companies, stating that they were allowed to open accounts without considering their potential risks, which could be used as tools for money laundering and large-scale frauds. 'These practices affect public finances,' he highlighted. In summary, Mercadante calls for a broader dialogue between the powers to address fiscal imbalances but focuses his criticism on the need to strengthen the supervision of BC and CVM.

Source: Valor Econômico