Federal Police Execute 18 Search Warrants in Investigation of Master Bank Credit Portfolio Sale to BRB

Brazilian Federal Police launched the ninth phase of Operation Compliance Zero on June 18, 2026, executing 18 search and seizure warrants across Bahia, São Paulo, and the Federal District. The warrants were issued by the Supreme Court as part of an investigation into the sale of credit portfolios from Banco Master to Banco de Brasília (BRB). The operation also implemented additional precautionary measures including contact prohibition and passport suspension for those under investigation.

The investigation focuses on potential involvement of public officials in irregularities surrounding the credit portfolio transaction. The conduct under investigation may constitute passive corruption, active corruption, and money laundering. The Bank of Brasília declined to comment on the matter when contacted by press.

Operation Compliance Zero began in November 2025 to investigate fraud against Brazil's national financial system, with emphasis on the issuance and trading of fraudulent credit titles. Initial investigations commenced in 2024 following a request from the Federal Public Ministry. Evidence suggests Banco Master created unleveraged credit portfolios that were subsequently sold to BRB and replaced with assets lacking proper technical evaluation after Central Bank of Brazil oversight. The first phase resulted in 25 search warrants, seven arrests, and R$1.3 billion in asset freezes, including the removal of BRB's then-president Paulo Henrique Costa.

The operation has proceeded through multiple interconnected phases. The second phase in January 2026 uncovered sophisticated structural fraud within the financial system using various funds to sustain the scheme, yielding 42 search warrants, one arrest, and approximately R$6 billion in frozen assets. The third phase in March 2026 investigated public official corruption and obstruction of justice, resulting in four arrests and two Central Bank officials being removed from duty. The fourth phase in April 2026 focused on manager corruption and associated money laundering schemes.