The Federal Police of Brazil is conducting extensive investigations into Banco Master, owned by Daniel Vorcaro, amid allegations of financial crimes such as fraud, money laundering, and misuse of public resources. This case has emerged as one of the major banking scandals in Brazil, scrutinizing various activities including the sale of unbacked credits and suspicious investment practices linked to pension funds. These investigations focus on the potential concealment of ownership stakes in a public institution, raising serious questions about corporate governance and regulatory compliance in the banking sector.

One of the significant probes, named 'Operation Compliance Zero', was initiated on November 18, 2025. This operation targets the alleged creation of non-existent credit portfolios, referred to as 'sin back', and the circulation of worthless assets that were used to inflate the balance sheet of Banco Master, ultimately hiding substantial losses. The investigations reveal a complex web of financial transactions where Banco Master is allegedly lending money to firms that subsequently invest these funds into questionable management funds. According to suspicions, these funds might be held by 'dummy' entities, which further complicates the tracing of these illicit financial activities.

As the investigations progress, they not only threaten the integrity of Banco Master but also might have broader implications for Brazil's financial system. If the allegations are substantiated, they could lead to significant legal consequences for the involved parties and prompt calls for regulatory reforms to prevent similar scandals in the future. The unfolding of this case could have lasting effects on public trust in the banking sector and the enforcement of financial regulations in Brazil.