Banco Master scandal

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The Banco Master scandal is an ongoing political scandal in Brazil, involving investigations into alleged financial fraud in private bank Banco Master and the political dealings of its major shareholder, businessman Daniel Vorcaro. The scandal emerged in late 2025 with the launch of Operation Compliance Zero by the Federal Police and the liquidation of the financial institution by the Central Bank, as well as Vorcaro's arrest in November. It has been described as the country's biggest ever banking fraud scandal, with evidence of involvement of political authorities, Central Bank employees and members of the judiciary. The scandal involves the offering of investment securities with promises of large returns, even though the bank did not have the assets and financial resources it required to maintain as collateral. The operation functioned, in practice, as a kind of pyramid scheme, in which applications from new customers covered the deficit of previous customers. The bank also overvalued...

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