BrazilS Central Bank is responding to allegations of impropriety surrounding the recent collapse of Banco Master, a mid-sized lender shuttered in November amid a fraud inquiry [[1]]. Ailton de Aquino, the Central Bank’s head of Supervision, has proactively released his personal financial records and communications with the former president of Banco de Brasília (BRB) to federal investigators, seeking to dispel claims he encouraged the bank to acquire questionable assets from the Master conglomerate. The move follows reporting by *O Globo* and comes as both the Supreme Court and Audit Court review the Central Bank’s handling of the liquidation [[2]].
247 – Ailton de Aquino, the head of Supervision at Brazil’s Central Bank, has made all of his banking and tax information, as well as records of conversations with former Banco de Brasília (BRB) President Paulo Henrique Costa, available to the Federal Public Ministry (MPF) and the Federal Police (PF). The move comes amid investigations into the purchase of credit portfolios from the Master conglomerate and is intended to reinforce transparency, according to an official statement from the regulator.
According to a statement released by the Central Bank, de Aquino voluntarily waived confidentiality regarding this information. The bank emphasized that de Aquino “obviously never recommended the acquisition of fraudulent portfolios,” responding to reports published by Malu Gaspar in O Globo, which alleged he had requested BRB to acquire irregular assets from Master.
The Central Bank stated that the decision to make the director’s personal and professional data public reflects his “commitment to transparency” and dedication to the responsibilities of public office. Aquino has provided authorities with “his banking and tax information and records of conversations with the former president of BRB, Paulo Henrique Costa, waiving the confidentiality applicable to them for this purpose,” the statement reads.
Notably, it was the Central Bank’s Supervision area, led by de Aquino, that initially identified inconsistencies in the operations involving Master’s credit portfolios. The regulator said the irregularities were detected and immediately subjected to “rigorous investigations, which demonstrated the untenability of the assets comprising these portfolios.” This initial detection underscores the Central Bank’s oversight role in the Brazilian financial system.
The team led by de Aquino also played a key role in communicating evidence of potential criminal offenses to the MPF, submitting supporting documentation and “meticulous technical analyses.” Furthermore, the Supervision area implemented a preventative prudential measure for Banco de Brasília as part of efforts to mitigate risks to the financial system.
The Central Bank also reported that de Aquino initiated the proposal to submit the institutions comprising the Master conglomerate to extrajudicial liquidation to the Central Bank’s board. This action was motivated, in part, by the illicit activities identified within those institutions.
The Central Bank reiterated its legal obligation to continuously monitor the liquidity conditions of the financial system, including asset acquisition transactions between institutions, to ensure sector stability and protect the interests of depositors, investors, and other creditors. “In exercising this mandate, the Supervision area of the Central Bank routinely monitors risks and seeks solutions to any liquidity problems identified in any financial institution, as provided by law,” the statement said.
Finally, the regulator emphasized that each financial institution bears “exclusive and full” responsibility for analyzing the quality of the credit it decides to acquire. Banks, according to the Central Bank, must maintain adequate internal procedures and controls to manage the risks assumed in their businesses, regardless of the oversight provided by the supervisory body.
