Central Bank Liquidates Banco Master as Judge Suspends BRB Leaders in Fraud Probe

Overview

• The Central Bank ordered the extrajudicial liquidation of Banco Master, a measure that removes the bank from the financial system and halts its operations.
• Federal Police arrested Master owner Daniel Vorcaro at São Paulo’s Guarulhos airport on Monday night on suspicion he would flee as part of Operation Compliance Zero.
• Judge Ricardo Leite suspended BRB president Paulo Henrique Costa and finance director Dario Oswaldo Garcia Júnior for 60 days, requiring passport surrender and monthly court appearances instead of preventive detention.
• Investigators report BRB injected R$16.7 billion into Master in 2024–2025, with roughly R$12.2 billion linked to portfolios suspected of lacking real backing or proper documentation.
• Costa says BRB identified documentation divergences earlier this year, notified the Central Bank, replaced most questioned portfolios, and will cooperate fully with authorities.