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TCU Orders Urgent On-Site Inspection at Central Bank Over Banco Master Liquidation

The case now faces a potential injunction to preserve assets pending a reconstruction of the decision process.

Overview

  • Technical teams began reviewing confidential records at the Central Bank with access to internal files from 2019–2025 to map supervision and resolution steps.
  • The review will check records of a Nov. 17 meeting and late market proposals such as Fictor Holding’s offer after a November liquidation that followed a PF probe and the owner’s arrest over alleged R$12.2 billion fraud.
  • Relator Jhonatan de Jesus said he may bar asset disposals or pause the liquidation to avoid irreversible acts, while indicating no ruling before initial findings.
  • The TCU deemed the Central Bank’s prior note insufficient for lacking underlying documents and will test motivation, proportionality, governance, and consideration of less harmful alternatives.
  • Financial associations reiterated confidence in the Central Bank’s technical decisions as related STF and PF proceedings continue and reports indicate the relator lacks majority support to overturn the liquidation.