Senate Panel Forms Oversight Group as Brazil Widens Banco Master–Reag Fraud Probe

Overview

• The Federal Police’s second phase of Operation Compliance Zero, authorized by Justice Dias Toffoli, broke bank and tax secrecy for 101 people and entities and froze up to R$5.7 billion in assets.
• Prosecutors asked for additional search measures, saying Reag founder João Carlos Mansur and his children appeared as final beneficiaries in funds tied to suspicious transactions.
• The Central Bank ordered the extrajudicial liquidation of the Reag entity (CBSF/Reag Trust) and appointed APS Serviços Especializados as liquidator, while Banco Master remains under a prior liquidation order from November 2025.
• The Senate Economic Affairs Committee created a working group led by Renan Calheiros to requisition documents from the Central Bank, TCU, CVM and Federal Police, with powers to call authorities but not to break secrecy.
• Investigations detail a scheme in which Master-funded loans were routed through Reag-managed funds to buy illiquid, overvalued assets and quickly cycle money back into Master CDBs, inflating assets and simulating liquidity.