Central Bank of Brazil orders liquidation of Trustee and Banvox

The Central Bank of Brazil has ordered the extrajudicial liquidation of Trustee Distribuidora de Títulos e Valores Mobiliários and Banvox Distribuidora de Títulos e Valores Mobiliários, both based in São Paulo. The monetary authority cited “grave violations of the legal norms” governing financial institutions as the reason for the decision.

Both distributors are linked to Maurício Quadrado, a former partner of Banco Master. Banvox has also been connected to at least one fund mentioned in ‘Operação Carbono Oculto’, an investigation into alleged money laundering and potential links to organized crime. Despite the liquidation, the Central Bank noted that the two companies hold a very small share of the National Financial System, representing less than 0.001% of total assets.

In a joint statement, Trustee and Banvox denied any irregularities and expressed surprise at the measure. The companies asserted that their operations comply with capital market rules and claimed they had never been notified by the Central Bank regarding the specific irregularities mentioned. They also noted that none of their executives were included in the Public Ministry's complaint related to Operação Carbono Oculto.