Brazil's BRB: Operation conducted by the Federal District Police on Tuesday stemmed from a criminal complaint filed by the bank itself - filing

Brazil’s Banco de Brasília (BRB) is at the center of a federal investigation following a police operation conducted on Tuesday, which was based on a criminal complaint filed by the bank itself. The operation, part of the ongoing Compliance Zero probe, led to the removal of BRB’s CEO, Paulo Henrique Costa, and its CFO, Dario Oswaldo Garcia Junior, for 60 days under a court order. The Federal District government has appointed Celso Eloi Cavalhero, an executive from Caixa Econômica Federal, to temporarily lead the institution while Cristiane Bukowitz, BRB’s head of human resources, serves as interim CEO until the transition is complete.

The investigation focuses on alleged financial misconduct tied to BRB’s business relationship with the now-defunct Banco Master, which collapsed in November 2025 amid a liquidity crisis and allegations of fraud. BRB had previously attempted to acquire Banco Master, but the Central Bank blocked the deal in September 2025. The Federal Police allege that Costa may have accepted bribes to facilitate BRB’s dealings with Banco Master, while Banco Master’s owner, Daniel Vorcaro, is already in custody for suspected attempts to bribe a former central bank official.

BRB has stated that it has operated in compliance with transparency and governance standards and has cooperated with regulatory authorities throughout the investigation. The bank has also engaged the law firm Jantalia Advogados to assess potential losses and explore recovery options for funds transferred to Banco Master. The case has drawn political attention, with lawmakers from the Federal District considering creation of a Parliamentary Commission of Inquiry to further examine the matter.