Brazil’s central bank has initiated a formal investigation into Alexandro Braudel López, a Santander executive accused of fraud by his previous employer, which is causing complications for Spain’s financial institutions.
The proceedings began in October against López, who had served as the finance chief for Brazil’s largest bank before joining Santander last year, as indicated by documents reviewed by the Financial Times.
Santander, identified as the eurozone’s most valuable financial entity, had plans to appoint López as chief accountant and a senior management team member.
However, in June, after allegations surfaced regarding his involvement in a fraud scheme while at Itau Unibanco, the bank altered its stance.
Despite these developments, López remains with Santander and was named executive vice president of the strategy group in September. He maintains that he has done nothing wrong.
His case gained attention after Santander opted to retain him, labeling him a “highly regarded senior executive” despite the ongoing issues.
Insiders mention that López has been reassigned to a “non-critical position” within the organization.
This controversy adds to a series of high-profile hiring disputes for Santander. The bank is currently entangled in a long-standing legal issue with Andrea Orcel, after it withdrew a job offer from the Italian executive in 2018.
This multimillion-euro situation has led to a public disagreement between Orcel and Ana Botín, Santander’s executive chairman, both recognized figures in the banking realm.
Brazil stands as one of Santander’s most significant markets, earning a net profit of 6.3 billion euros from January to September this year, outpacing all other countries under the bank’s global umbrella.
Itau Unibanco has accused López of misappropriating funds through contracts with external consultants engaged on the bank’s behalf.
Earlier this year, Brazilian federal prosecutors tasked law enforcement with investigating López concerning these allegations. As far as anyone knows, that investigation is still ongoing.
The Brazilian Central Bank, which regulates the country’s financial sector, triggers sanctions protocols when it detects potential legal or regulatory breaches by individuals or firms.
Depending on the situation, sanctions imposed by the central bank can involve financial penalties, bans from the finance industry, or public censure.
Santander did not provide specific reasons for rescinding López’s planned promotion in June, even though his salary stayed intact. According to sources, lenders are required to uphold López’s contract as long as his allegations remain unresolved.
A representative for López stated that he “firmly denies all accusations from Itau Unibanco and has initiated separate legal actions for damages.” They also emphasized that the start of sanctions proceedings by the Brazilian Central Bank should not be interpreted as guilt.
“These actions were based only on unverified claims from Itau Unibanco, and the proceedings should continue to allow for López’s defense,” they noted.
Before taking on his role at Santander, López secured all necessary regulatory approvals, including passing the European Central Bank’s “suitable and appropriate” assessment for senior management positions.
Insiders revealed that the allegations against López emerged after his arrival at the Spanish bank.
Santander opted not to comment on the matter.
