Brazil’s Central Bank Liquidates Banco Master as FGC Readies Record R$41 Billion Payout

Overview

• Roughly 1.6 million depositors and investors qualify for protection under the FGC’s guarantee of up to R$250,000 per CPF or CNPJ per institution, including principal and accrued earnings to the liquidation date.
• The Central Bank’s decree also covers Banco Master de Investimentos, Banco Letsbank and Master Corretora de Câmbio, triggering the deposit insurance process for eligible products such as CDBs and savings.
• The FGC says there is no legal deadline to start transfers, though payments typically take about 30 days after it receives and validates the official creditor lists.
• Federal police arrested founder Daniel Vorcaro at Guarulhos airport in Operation Compliance Zero on accusations including fraudulent and reckless management and criminal organization, with investigators citing an alleged R$12 billion scheme.
• The planned R$41 billion disbursement will be the fund’s largest on record and will draw heavily on its resources, which totaled R$160 billion in patrimony with R$122 billion in liquid assets as of September 2025.