Brazil's Central Bank Orders Liquidation of CBSF DTVM as Master–Reag Probe Deepens

Overview

• The Central Bank cited serious violations of financial rules, froze the assets of controllers and former managers, and noted the DTVM’s small footprint as an S4 institution.
• Supervisory documents sent to the federal audit court flagged roughly R$11.5 billion in suspicious flows involving Reag-linked vehicles tied to the Banco Master case.
• The Federal Prosecution Service reports R$5.775 billion has been blocked in the investigation, while new PF raids seized luxury cars, cash, weapons and phones under warrants authorized by STF minister Dias Toffoli, who sent the material to the PGR.
• CBSF says the liquidated distributor now belongs to a group controlled by Planner’s B100 following a December reorganization and a deal finalized on January 5.
• Fund assets remain legally segregated from the administrator’s balance sheet, but operations are frozen pending investor assemblies, with probes scrutinizing extreme valuations such as the FIDC High Tower reappraisal.