TCU Orders Urgent On‑Site Review of Central Bank’s Banco Master Liquidation

Overview

• Relator Jhonatan de Jesus authorized an in‑person, confidential inspection at the Central Bank to reconstruct the 2019–2025 supervision and resolution flow and test the decision’s motivation, coherence and proportionality.
• He signaled possible precautionary measures to preserve the estate’s value, including blocking asset sales, while stating no such injunction will be considered before initial fact‑finding.
• The Central Bank filed an appeal requesting that any inspection be approved by the TCU’s Primeira Câmara rather than by a single minister, and the review has not begun as procedural steps are finalized.
• TCU president Vital do Rêgo defended the court’s constitutional authority to audit the Central Bank’s legality and economicity claims without intruding on its technical autonomy.
• Banco Master’s November liquidation followed a Federal Police probe and the arrest of owner Daniel Vorcaro over alleged frauds estimated around R$12.2 billion, and stakeholders warn a court‑ordered pause could delay FGC reimbursements and unsettle markets.