Central Bank Liquidates Banco Master as Police Probe Alleged R$12.2 Billion Fake Credit Scheme

Overview

• Federal police launched Operation Compliance Zero, arresting owner Daniel Vorcaro at Guarulhos and detaining other executives on suspicions including fraudulent management and issuance of fake securities.
• The Central Bank ordered extrajudicial liquidation of four Master entities and placed Banco Master Múltiplo under temporary special administration to preserve a potential sale of Will Bank.
• O Globo reports that Mubadala paused its planned roughly R$3 billion acquisition of Will Bank after the intervention, with the deal under internal review.
• Judicial records cite about R$16.7 billion transferred from BRB to Master since 2024, including R$12.2 billion in allegedly nonexistent credit portfolios and indications of breached single‑client exposure limits.
• The 10th Federal Court clarified that a R$12.2 billion asset‑blocking order does not apply to BRB, which says it has cooperated with investigators, flagged documentation divergences to the Central Bank, and replaced most questioned portfolios; the DF governor nominated Celso Eloi to head BRB pending approvals, as a district lawmaker sought audits by the TCDF.