Brazilian Senator Jaques Wagner Targeted in Federal Police Probe of Banco Master

Brazil's Federal Police launched the ninth phase of Operation Compliance Zero, authorized by Supreme Court Justice André Mendonça, to investigate alleged irregularities involving Banco Master. The operation focused on Senator Jaques Wagner, the government’s leader in the Senate, alleging he acted on issues benefiting the bank.

Police say Wagner was involved in discussions on credit‑consigned loans, the Credit Guarantee Fund (FGC) and the sale of Banco Master to Banco de Brasília (BRB). Evidence includes phone calls and messages with Augusto Ferreira Lima, a former partner of Daniel Vorcarono of Master. In March 2022, Wagner presented an amendment expanding credit‑consigned margins and authorising loans for beneficiaries of the Continuous Cash Benefit (BPC), coinciding with the start of contracts between Master and BN Financeira, a company linked to his family. Additional communications were recorded around an August 2024 amendment to the FGC.

The government has responded cautiously, stressing that the searches do not imply guilt, while opposition politicians are using the episode to increase pressure on the administration. Wagner maintains his parliamentary duties and has denied any wrongdoing as the investigation continues.