Brazil Police Arrest Banco Master Founder as Central Bank Orders Extrajudicial Liquidation

Overview

• Federal Police launched Operation Compliance Zero, detaining Daniel Vorcaro at Guarulhos airport after he prepared a private flight to Malta and executing seven arrest warrants and 25 searches across five states and the Federal District.
• Investigators allege Banco Master fabricated and sold credit instruments to another bank and later swapped them for other assets without proper technical evaluation, with crimes under probe including fraudulent management and organized crime.
• The Federal District court ordered R$12.2 billion in account blocks, while agents seized R$1.6 million in cash, luxury cars, artworks and watches; at least six suspects were taken into custody by midday.
• The Central Bank decreed extrajudicial liquidation of Banco Master, made controllers’ and former executives’ assets unavailable, named EFB Regimes Especiais de Empresas as liquidator and placed part of the conglomerate under temporary administration.
• A judge removed BRB president Paulo Henrique Costa and the bank’s finance chief for 60 days as inquiries advance, DF lawmakers moved to open a CPI into BRB–Master dealings, and Fictor’s R$3 billion purchase plan was suspended following the liquidation.