Brazil's Central Bank Appoints Three-Member Inquiry Into CBSF Liquidation as CGU Reviews Misconduct File

Overview

• The Central Bank named a three-person commission to investigate the extrajudicial liquidation of CBSF, formerly Reag, with an initial 120‑day deadline from the commission’s installation.
• Under liquidation law, the inquiry may review accounting and records, access third‑party files, take depositions, and request police assistance as needed.
• The final report must detail the institution’s condition, causes of the collapse, personal assets of managers over the past five years, and loss estimates, with court referral and asset seizure requests by prosecutors if prejudice is found.
• The Comptroller General opened an admissibility review of the Central Bank’s sindicância on two suspended supervisors tied to the Banco Master case, with up to 180 days to decide on a disciplinary process and the option to launch a corporate liability case that could require restitution.
• Federal Police investigations continue under Operation Compliance Zero, with STF Justice André Mendonça imposing measures such as electronic monitoring as probes cite alleged consulting for Master owner Daniel Vorcaro; the Central Bank flagged indications of undue advantages and removed the two officials in January.