Categories: Daily Best of the Web

Inside Royal Bank of Canada’s Latin Misadventure

As Royal Bank of Canada mounted an aggressive campaign to reel in business from Latin America’s growing class of superrich, a Miami-based banker made a big catch:Gilberto Miranda Batista, a former Brazilian senator with a $500 million fortune, three houses, four farms and a Rolls Royce.

While some bankers celebrated, RBC’s compliance department soon raised a warning flag. Worried that Mr. Miranda’s accounts might attract scrutiny from global regulators over potential money laundering, some compliance officers began recommending that the accounts be shut down around 2007, according to people familiar with the episode.

But the Miami banker, Dirceu Magalhaes, successfully argued against axing the prize client, even after Brazilian prosecutors charged Mr. Miranda with corruption in 2012, these people say.

In 2013, Mr. Miranda’s accounts attracted the attention of a U.S. banking regulator, the Office of the Comptroller of the Currency, which that year deemed RBC’s anti-money-laundering controls unsatisfactory, according to people familiar with the matter.

Read more: The Wall Street Journal

Chief Executive

Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.

Share
Published by
Chief Executive

Recent Posts

Building An ‘AI First’ Accounting Powerhouse

Aprio CEO Richard Kopelman on 14 deals in a year, a $300 million AI bet…

6 hours ago

U.S. Manufacturers More Optimistic In May, Despite Continued Volatility

Though volatile pressure continues to temper current business forecasts in the sector, year-ahead manufacturing confidence…

11 hours ago

‘We Will Not Have Stability Again’: Takeaways From The 2026 Manufacturing Leaders Summit In St. Louis

In an era of tariffs, China, AI, margin pressure and continued economic uncertainty the best…

1 day ago

Why Your Company’s Customer Experience Isn’t Working Anymore

Once you commit to a truly customer-centric operation, the path you chart will be very…

1 day ago

The Rebuild That Took Our Family Business From Shutdown To $80 Million

After a decade, we’ve found that distributed teams outperform when the operating infrastructure is right.

1 day ago

Finding Balance During Leadership Transitions

Leadership turnover creates uncertainty fast, especially when employees lose sight of the company’s core values.…

2 days ago