TCU Orders Urgent In‑Person Audit of Central Bank Over Banco Master as BC Files Challenge

Overview

• Relator Jhonatan de Jesus authorized an in‑loco inspection at the Central Bank to reconstruct the 2019–2025 supervision and resolution record after finding the Bank’s prior note lacked underlying documentation.
• He signaled a possible precautionary order to block asset sales or suspend the liquidation to preserve the value of the estate until the audit is completed.
• The Central Bank filed embargos de declaração asking that any inspection be approved by the TCU’s First Chamber, arguing the decision should be collegial rather than monocratic.
• TCU president Vital do Rêgo reaffirmed the court’s constitutional authority to audit legality and economicity of acts by the Central Bank without replacing its technical judgment.
• Banco Master was liquidated after a Federal Police operation that led to the arrest of controller Daniel Vorcaro, with the Central Bank reporting suspected irregularities totaling roughly R$11.5 billion, and the inspection will occur on-site due to legal secrecy over records.