Banco Master Liquidated After Fraud Probe, FGC to Cover R$41 Billion

Overview

• Federal police arrested founder Daniel Vorcaro and other executives in Operation Compliance Zero, alleging fraudulent management in a scheme estimated at about R$12 billion, as a judge cited robust signs of organized crime and potential public losses above R$10 billion.
• The Central Bank also liquidated Master affiliates Banco Master de Investimentos, Letsbank and Master Corretora de Câmbio, and the FGC says roughly 1.6 million eligible creditors will be paid once the liquidator submits data under fund rules.
• Judicial and investigative records state BRB transferred about R$16.7 billion to Master from July 2024 to October 2025, including R$12.2 billion in suspect portfolios; BRB’s president was removed for 60 days and the bank says it alerted the Central Bank and replaced most portfolios.
• Internal Central Bank supervision notes report BRB made accounting entries without documentary support and saw regulatory capital ratios turn negative early in 2025 after buying Master assets.
• Investigators point to the use of the newly created Tirreno and unauthenticated contracts to fabricate asset backing, and they are opening new fronts to review sales of non‑FGC‑covered papers to state and municipal pension funds estimated at R$1.867 billion.