Attempted fraud of 50 billion U.S. dollars for Portugal

Authorities investigating the attempted fraud of 50 billion U.S. dollars for Portugal
By Lusa
05-17-2009

The operation was attempted by an unidentified woman, who presented a bank in Lisbon an interbank transfer contract

The Portuguese authorities are investigating an attempted transfer of 50 billion dollars (36.6 billion) from JP Morgan Chase, U.S., to Canada, what, where result would be the biggest fraud ever in the country.

The operation was attempted by an unidentified woman, who presented a bank in Lisbon an interbank transfer contract, which the Lusa had access, which provides a movement of 36.4 million euros in the first tranche. The document raised strong suspicions about the legality of the operation that was to materialize, either by the mode of action of the woman or, especially, the large amount involved.

Official source of the prosecutor told the Lusa that "the Central Department of Investigation and Penal Action (DCIAP) is to collect information on the matter."

The Bank of Canada is also investigating the case, according to official sources, which indicated that the process followed for the department of supervision "of the institution led by Vitor Constâncio, confirming also that the way the case is similar to other attempts at fraud detected by the authorities in Portugal.

The Financial Information Unit of the Judicial Police (PJ) is also aware of the process. Contacted by Lusa, PJ's official source said, however, "is not considered appropriate to comment on specific situations," goes to disclose data on situations of the kind found in recent years in Portugal.

As the amount involved, 50 billion dollars (36.6 billion euro), is far superior to any other similar case ever found in Portugal, confirmed to the Lusa the supervisor of banks.

Even if there is a limit to transfers of money from abroad to Ireland and vice versa, the amount is so high that it would do for five lines of high-speed train in Portugal or ten airports in Lisbon.

If the operation was carried out, would be transferred to Portugal twice the value of the 20 largest Portuguese stock exchange."An amount ever seen, is in the Portuguese market or in any place of reference of the world," said a banking source to Lusa. Indeed, it is not every day that are transferred 50 billion dollars from one country to another and, as another source of market, "seems to play. The value is completely abnormal."

The contract 'Swift' [direct exchange between banks] provide for the transfer of that amount between the North American bank, the JP Morgan Chase Manhattan Bank, and the Portuguese institution, with a pre-set exchange rate and fixed at 85 euros for each $ 100 (euro in evaluating each $ 1.17 - below the $ 1.36 to the euro has traded in the foreign exchange market).

The transaction would be held in several tranches, with the first set at 49.5 million dollars (36.4 million). In terms of commissions, the lead bank to accept the transfer operation of the money received 2.5 percent of the total amount, ie 1.25 billion dollars (nearly one billion euros - twice the market value of the Banif stock exchange, for example).

On page four of the contract read that "the parties have to follow the coordinates given by the rules of the banks on the Anti-Terrorist Act and the Patriotic Act I and II. The purchaser [bank that accepts to receive the money coming from the U.S.] will not held responsible for any money laundering harmful. "