Brasília’s Banco de Brasília (BRB) is facing increased scrutiny following a federal police operation, dubbed “Operation Compliance Zero,” launched November 18th, investigating alleged fraudulent activity involving the smaller Banco Master[[1]].The investigation has already lead to the arrests of Banco Master’s owner and key executives, and also the removal of BRB’s top leadership, including President Paulo Henrique Costa and Financial Director Dario Oswaldo Garcia Júnior. Governor Ibaneis Rocha has attributed the situation to “excessive trust,” as the state-owned bank commissioned an external audit to assess potential financial inconsistencies[[2]].
Brasília’s Banco de Brasília (BRB) attributes its involvement with Banco Master to “excessive trust,” according to District Federal Governor Ibaneis Rocha. The statement comes following a recent police operation and leadership changes at the bank, raising questions about risk management practices at the state-owned financial institution.
Speaking after an event on November 20, Governor Rocha asserted that the District Federal government “is a serious government” and acknowledged that “errors may have occurred, often due to excessive confidence.” The BRB’s dealings with Banco Master have come under scrutiny after federal police launched an investigation into alleged fraudulent activity.
To address concerns, the BRB has commissioned an external audit, the governor said. “We have already contracted, through the BRB, an external audit to verify any inconsistencies that may exist in both the balance sheets and the operations that were carried out,” Rocha stated. He further emphasized the BRB’s financial stability, noting that the bank “has solidity and liquidity and a DF government that also has assets to guarantee any operation.”
Rocha attributed the situation to decisions made by the bank’s former president, Paulo Henrique Costa, stating, “I attribute this operation that happened to the former president Paulo, for whom I have enormous affection and trust, to the excessive confidence in the bank’s growth.”
Leadership Changes
Nelson Antônio de Souza, a former president of Caixa Econômica Federal, has been nominated to lead Banco de Brasília. This move follows the November 18 launch of “Operation Compliance Zero,” which led to the removal of Paulo Henrique Costa and Financial Director Dario Oswaldo Garcia Júnior, according to reports.
The nominations require approval from both the Central Bank and the Legislative Chamber of the Federal District (CLDF). The leadership shakeup underscores the seriousness with which regulators are treating the allegations surrounding the bank’s relationship with Banco Master.
Investigation Details
On November 18, the Federal Police executed search and seizure warrants and preventative arrest warrants as part of Operation Compliance Zero, investigating a scheme involving the issuance and trading of false credit titles linked to Banco Master. The BRB had previously announced plans to acquire Banco Master in March 2025, a deal that was subsequently blocked by the Central Bank.
In addition to Costa’s removal, the Justice Department also ordered the removal of Financial Director Dario Oswaldo Garcia Júnior. The police arrested Banco Master’s owner, Daniel Vorcaro, former partner Augusto Lima, and treasurer Alberto Félix on November 18, one day after Banco Master announced a sale to Fictor and international investors.
