Banco Master scandal

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.

The scandal implicates Vorcaro, who was a major shareholder in Banco Master, which operated in Faria Lima, São Paulo. Vorcaro was arrested in November 2025 as he attempted to flee Brazil. Investigators uncovered ties between Vorcaro and members of the Supreme Federal Court.

Brazilian state-run bank Banco de Brasília is expected to set aside over 5 billion reais ($970 million) to cover transactions with the failed lender. According to estimates by Brazil's Federal Police, the bank's missing funds may reach 12 billion reais ($2.2 billion), and a minimum of 1.6 million people may have been affected. Finance Minister Fernando Haddad stated this could be “the biggest bank fraud” in Brazilian history.

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