Portugal's Financial Investigation: Novo Banco Under Scrutiny

Portuguese police have conducted a search at Novo Banco and KPMG amid a probe into alleged corruption associated with the sale of the bank's assets. Following its 2014 bailout, Novo Banco has been under scrutiny for potential corruption linked to asset sales since 2018, with significant international implications.

In a significant crackdown, Portuguese police have targeted Novo Banco and audit giant KPMG in an extensive investigation into alleged corruption concerns surrounding the lender's asset sales. The investigation follows Novo Banco's past restructuring and ownership change, primarily linked to its prior bailout.

According to the prosecutor's office, there are suspicions of active and passive corruption, aggravated fraud, and money laundering associated with asset sales since 2018. Both Novo Banco and French owner BPCE have not provided comments on the ongoing investigation.

The investigative operation, involving over a hundred inspectors, extends to private residencies and business premises, seeking evidence related to the potential financial misconduct. KPMG has confirmed their premises were searched but emphasized their non-target status, reiterating their cooperation with authorities.

(With inputs from agencies.)