Brazil Orders Banco Master Liquidation as Federal Police Arrest Owner Daniel Vorcaro

Overview

• Federal Police launched Operation Compliance Zero, executing five preventive and two temporary arrest warrants and 25 searches across Rio de Janeiro, São Paulo, Minas Gerais, Bahia and the Federal District.
• Daniel Vorcaro was detained at Guarulhos airport after investigators reported he attempted to depart on a private jet.
• The Central Bank decreed the bank’s extrajudicial liquidation, froze assets of controllers and former administrators, and appointed EFB Regimes Especiais de Empresas as liquidator under Eduardo Felix Bianchini.
• A federal judge ordered the temporary removal of BRB president Paulo Henrique Costa and the bank’s directors, with searches carried out at BRB as part of the case.
• An intended R$3 billion purchase by a consortium led by Fictor Holding Financeira was announced hours earlier but is effectively halted by the liquidation and ongoing investigations into suspected fraudulent and reckless management and criminal organization.