Ex-President of Banco BRB Arrested Amid Corruption Probe in Banco Master Case
Paulo Henrique Costa, former Banco BRB president, arrested for alleged governance violations and illicit dealings with Banco Master assets totaling R$ 21.9 billion in a major corruption probe.
- • Paulo Henrique Costa arrested in Operation Compliance Zero for alleged governance breaches involving Banco Master.
- • Banco BRB acquired R$ 21.9 billion in assets from Banco Master, many with irregularities.
- • Supreme Court ordered Costa's preventive detention after evidence of illicit payments via real estate deals.
- • Lawyer Daniel Monteiro arrested for alleged money laundering and creating fraudulent compliance structures.
- • Previous arrests include businessman Daniel Vorcaro, who is negotiating a plea deal.
Key details
Paulo Henrique Costa, the former president of Banco BRB, was arrested on April 16, 2026, as part of a major law enforcement operation targeting alleged governance breaches and illicit financial activities involving Banco Master. The Federal Police (Polícia Federal) launched a new phase of Operation Compliance Zero, during which seven search warrants were executed across the Federal District and São Paulo.
Costa is accused of violating governance rules and authorizing risky transactions with Banco Master without proper guarantees. He had already been removed from office by a judicial order and later dismissed by the Governor of the Federal District, Ibaneis Rocha, in November following the initial phase of the operation.
The investigation revealed that Banco BRB acquired approximately R$ 21.9 billion in assets from Banco Master between 2024 and 2025. A significant portion of these assets showed irregularities, including lack of backing, missing documentation, and potentially fraudulent contracts. Information provided to Supreme Court Minister André Mendonça by the Federal Police indicated illicit payments to Costa linked to real estate purchases connected to Banco Master, prompting Mendonça to order Costa’s preventive detention.
In addition to Costa's arrest, lawyer Daniel Monteiro was also detained on charges of structuring a money laundering scheme. Monteiro is alleged to have drafted fraudulent contracts, created a parallel compliance system within Banco Master, and established shell companies to conceal illicit payments.
Earlier in the investigation, businessman Daniel Vorcaro was arrested for allegedly ordering attacks on rivals and maintaining an armed parallel structure; he is now negotiating a plea agreement with authorities.
This latest phase of the investigation highlights extensive alleged corruption involving senior figures and complex financial maneuvers across prominent Brazilian financial institutions, with significant political and economic ramifications.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
