Brazil police arrest Credit Suisse banker

By Elzio Barreto

SAO PAULO, April 23 (Reuters) - Police in Brazil arrested a Credit Suisse banker on Wednesday on accusations he offered private banking services in the country without a central bank license in the latest clampdown on illegal money transfers.

Officers arrested the banker in Rio de Janeiro after following him for nearly 10 days in Sao Paulo, the federal police said in a statement. Police identified the banker as a "high ranking executive" with the initials P.C.W.

Police said on Wednesday Credit Suisse Group (CSGN.VX) continued to offer private banking services in Brazil even after closing a representative office in the country. Executives from the Swiss bank periodically flew to Brazil for direct contact with clients and to sign up new customers.

Credit Suisse didn't immediately return a request for comment on the arrest.

Brazil's federal police have cracked down on illegal money transfers over the past years, probing international banks for allegedly helping Brazilians evade taxes.

In 2006 police raided Credit Suisse's offices in Sao Paulo, Brazil's financial hub, and the homes of four of its executives as part of what it called "Operation Switzerland." Police said the arrest on Wednesday was a follow-up to the 2006 investigation.

In 2007, police also arrested 20 people, including bankers at UBS (UBSN.VX), Credit Suisse unit Clariden and AIG Private Bank. At the time, police claimed the scheme helped wealthy Brazilians evade nearly 1 billion reais ($603 million) of taxes with illegal overseas money transfers.

Several Brazilians with numbered accounts at Credit Suisse have been identified and will be investigated by Brazilian officials, the federal police said.

($1 = 1.659 Brazilian reais) (Editing by Brian Moss)