Central Bank President Galípolo testifies in Banco Master fraud probe

The Brazilian Federal Police are conducting an investigation into potential fraud and undue favoritism involving Banco Master and former officials of the Central Bank. Gabriel Galípolo, the current President of the Central Bank, testified as a witness in the inquiry.

The investigation, part of Operation Compliance Zero, examines whether former Central Bank directors Paulo Sérgio Souza and Belline Santana received illicit payments from Daniel Vorcaro, the owner of Banco Master, to favor the institution during its supervision. Vorcaro previously admitted to providing a “gift” to Souza in the form of a family trip to the United States, though he denied any regulatory favoritism.

Testimony from Souza has raised further allegations, including claims that Ailton de Aquino, the Director of Supervision, suggested delaying oversight of Banco Master until Galípolo assumed the presidency. Additionally, Souza alleged that BTG Pactual had identified a R$ 32 billion fraud within Banco Master and communicated this finding to former Central Bank President Roberto Campos Neto.

Other figures summoned or mentioned in the probe include André Esteves, Chairman of the Board at BTG Pactual, whose testimony has been postponed. The investigation seeks to determine if former employees provided informal consultancy to Vorcaro in exchange for financial advantages.