Brazil Federal Police investigate Central Bank ties to Banco Master

The Brazilian Federal Police have postponed the testimony of former Central Bank President Roberto Campos Neto in an ongoing investigation regarding the relationship between Central Bank employees and Daniel Vorcaro, the controller of Banco Master. Campos Neto is being heard as a witness to determine his knowledge of the activities of former directors Belline Santana and Paulo Sérgio Neves, who are accused of acting in favor of Vorcaro.

Gabriel Galípolo, the current President of the Central Bank, has already testified as a witness. During his testimony, Galípolo reported significant frustration regarding delays in staff producing financial analyses and communications concerning Banco Master. He described the process of obtaining reports on suspected fraud as a “processo de parto a fórceps” (a forceps delivery) and noted that he had to use strong language to demand progress from subordinates.

Galípolo also highlighted disagreements with former officials regarding the bank's balance sheet and its potential acquisition by the Banco de Brasília (BRB). The investigation, which is expected to conclude in October, examines allegations that former employees received bribes to facilitate the growth of the institution, which expanded its assets to approximately R$ 40 billion during Campos Neto's tenure.