Brazil's Central Bank orders liquidation of MW Instituição de Pagamento

The Central Bank of Brazil has decreed the extrajudicial liquidation of MW Instituição de Pagamento Ltda., a company based in Joinville, Santa Catarina. The decision, signed by Central Bank President Gabriel Galípolo, follows the discovery of “grave violations to the rules” governing the Brazilian Payment System (SPB).

As part of the liquidation process, the assets of the institution's controllers and former administrators have been made unavailable as of Thursday, October 29. The Central Bank noted that the company has low representation within the National Financial System, accounting for less than 0.0002% of total assets.

The monetary authority stated it will continue to take necessary measures to investigate responsibilities, which may result in administrative sanctions and reports to competent authorities. Unlike a judicial bankruptcy process, this extrajudicial liquidation involves the appointment of a liquidator to manage the closure of operations and organize creditor payments.