Brazil Government Whip Asks Police to Probe Ex-Governor Caiado Over Fintech Dealings

Lindbergh Farias, the government's vice-leader in Brazil's Chamber of Deputies, has formally requested the Federal Police to investigate former Goiás Governor Ronaldo Caiado. The probe centers on financial dealings between Caiado's state administration and a fintech company, BK Bank, which is currently under investigation for alleged money laundering, asset concealment, and criminal organization activities as part of the "Operação Carbono Oculto" (Operation Hidden Carbon).

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The gravity of the facts stems from the possible insertion of public resources, social programs, and local merchants into a financial environment contaminated by suspicions of money laundering, asset concealment, and criminal organization.

The report that prompted Farias's request, published by Folha, highlights that Caiado's administration utilized BK Bank to manage R$1.36 billion intended for income transfer programs. BK Bank is suspected of operating as a parallel financial institution for the PCC criminal faction. A document from Brazil's Financial Activities Control Council (Coaf) indicates that Goiás's Development Agency transferred this substantial sum to BK Bank between October 2021 and August 2025.

According to the Goiás state government, these funds were used to pay benefits to 880,000 recipients. A usage fee, up to 6%, was charged to merchants accepting payments from these program beneficiaries. This fee was split, with 50% going to the Development Agency and 50% to BK Bank, until Goiás contracted a new fintech in 2024. The fee structure was subsequently altered.

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When Operation Carbono Oculto was launched, the agency adopted administrative and judicial measures to protect the public interest. To date, no prejudice to GoiásFomento has been confirmed.

Caiado, who left the governorship in March and is now a presidential pre-candidate, has stated that a Central Bank certificate confirms BK Bank's authorization to operate. He argued that states could not have reasonably suspected the company's links to criminal organizations. The government of Goiás has stated that the Development Agency took administrative and judicial measures to protect public interest when Operation Carbono Oculto was launched, and no prejudice to GoiásFomento has been confirmed to date.

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A Central Bank certificate attests that BK is 'authorized and in operation.' There was no way for the states to suspect the company's link to a criminal organization.