Brazil’s Central Bank Liquidates Banco Master as Police Arrest Owner in Fraud Probe

Overview

• Federal Police detained Banco Master owner Daniel Vorcaro in the Compliance Zero operation, with investigators reporting he attempted to depart from Guarulhos by private jet.
• The Central Bank decreed extrajudicial liquidation of Banco Master, froze the assets of controllers and former administrators, and appointed EFB Regimes Especiais de Empresas as liquidator.
• Judicial orders include seven arrests and 25 search-and-seizure warrants across five states and the Federal District, with multiple directors of the bank targeted.
• Authorities are investigating alleged fabrication and sale of unsupported credit portfolios later swapped for assets without proper valuation, citing suspected fraudulent and reckless management and criminal organization.
• A Fictor-led proposal to inject about R$3 billion and acquire the bank is effectively halted by the liquidation, leaving recovery to the liquidator and the Credit Guarantee Fund, which insures individuals up to R$250,000.