Bahamas Court Confirms Liquidation of Brazil's Banco Master and Enables Asset Recovery

The Supreme Court of the Bahamas issued a decision on 26 May authorising the liquidation process of Brazil’s Banco Master. The court appointed EFB Regimes Especiais de Empresas Ltda. as the bank’s representative in the Caribbean jurisdiction, granting it powers to identify, manage and recover assets linked to the bank’s group in the Bahamas. This move follows the Brazilian Central Bank’s declaration of extrajudicial liquidation in November 2025 after the Federal Police’s Operation Compliance Zero uncovered suspected fraud and the diversion of roughly US$ 1 billion by former controller Daniel Vorcaro and associated entities. The Bahamas ruling extends international cooperation, allowing the liquidator to access financial information, represent group companies before local authorities and pursue legal actions to retrieve overseas assets for the benefit of Banco Master’s creditors. Earlier, a similar decision had been made in the United States, reinforcing the cross‑border effort to recover the alleged misappropriated funds.