Brazil Orders Banco Master Liquidation as FGC Prepares Record R$41 Billion Payout
Payments will follow validation of creditor lists by a Central Bank–appointed liquidator, with coverage capped at R$250,000 per customer per institution.
Overview
- The Central Bank decreed the extrajudicial liquidation of Banco Master on November 18 after identifying irregularities.
- The FGC estimates about 1.6 million depositors and investors have eligible claims totaling roughly R$41 billion, the largest payout in its history.
- Reimbursements are not automatic, requiring individuals to register through the FGC app and companies to use the Investor Portal before requesting payment.
- Disbursements typically begin around 30 days after the liquidator submits consolidated creditor lists and the FGC validates the data.
- Federal police arrested founder Daniel Vorcaro in Operation Compliance Zero on allegations including fraudulent and reckless management, with authorities citing R$12 billion in fraud.