Brazil Moves to Coordinate Response as Master Bank Probe Intensifies With Raids and R$5.7 Billion Freeze

Overview

• Federal Police launched the second phase of Operation Compliance Zero on January 14, executing 42 search warrants across five states and enforcing a Supreme Court–ordered block of R$ 5.7 billion.
• Agents seized cash, luxury vehicles and watches, electronics and weapons, including a rifle and a submachine gun, with R$ 645,000 in cash counted and 23 vehicles valued at about R$ 16 million.
• Targets included relatives and associates of Daniel Vorcaro: Fabiano Zettel was stopped at Guarulhos while trying to fly to Dubai and released with restrictions, and phones from Zettel and investor Nelson Tanure were seized.
• Investigators are examining suspected diversion of Banco Master resources to private assets through a web of investment funds linked to Reag, probing possible organized crime, fraudulent management, market manipulation and money laundering.
• Tensions grew as Justice Dias Toffoli criticized the Federal Police over timing and first ordered evidence sealed at the Supreme Court before sending materials to the Prosecutor‑General’s Office, while the Central Bank and PF leaders met to reaffirm cooperation; Banco Master was liquidated in November 2025 with a reported R$ 41 billion shortfall and 1.6 million investors awaiting FGC compensation that press reports say could start next week.