Brazil news: Swiss private bank Julius Baer snaps up country’s largest independent wealth management firm

Uruguay’s El Pais reports that Swiss private bank Julius Baer has acquired an 80% stake in Brazilian wealth management firm GPS. Julius Baer had already bought 30% of GPS – which manages 4.7 billion euros in assets – in 2011.

In February, Julius Baer announced its profits had fallen short of market expectations. It is also subject to a tax probe in the US for allegedly facilitating offshore tax evasion.

Swissinfo.ch has more background:

“Swiss banks are trying to grow customer assets from emerging-market regions such as Asia and Latin America after a crackdown on undeclared offshore bank accounts by U.S. and European governments crimped growth in traditional cross-border markets.”

Brazil already loses an average of 19 billion USD a year to Illicit Financial Flows. Hopefully the Receita Federal (Brazilian tax authority) will be on high alert about this new development.

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