Switzerland Probes Banks to Gauge Exposure in Petrobras Scandal

Switzerland’s finance regulator is investigating local banks to gauge their exposure to a widening scandal surrounding Brazilian oil producer Petrobras Brasileiro SA.

The regulator, known as Finma, said it is looking into whether banks and securities trading firms met their due diligence obligations in possible cases of money laundering, and whether any possible incidents were reported to authorities. Bern, Switzerland-based Finma didn’t identify the banks, which it said it began talking to months ago as part of the ongoing investigation.

Switzerland’s attorney-general in March released $120 million of $400 million in assets tied to suspicious Petrobras-related transactions that had previously been frozen. The spreading corruption scandal surrounding the Rio de Janeiro-based oil and gas producer has plunged Brazil into recession and triggered calls for Brazilian President Dilma Rousseff to be impeached over her handling of the affair.