Key Points
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- Brazil’s central bank ordered the extrajudicial liquidation of CBSF (formerly Reag DTVM) one day after federal police widened a major financial-fraud investigation linked to Banco Master.
- Investigators say investment funds were used as vehicles for suspected fraud and money laundering, with courts authorizing large-scale searches and asset freezes.
- The shutdown adds regulatory force to a case already rattling confidence in market “plumbing” firms that handle custody, funds, and transactions.
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\nBrazil’s Central Bank has pulled the plug on CBSF Distribuidora de Títulos e Valores Mobiliários, the brokerage formerly known as Reag DTVM.
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\nThe institution has been placed into extrajudicial liquidation, with APS Serviços Especializados de Apoio Administrativo Ltda. appointed as the liquidator.
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\nAntonio Pereira de Souza will serve as the technical lead. Souza has prior experience with bank liquidations, including the Bamerindus case.
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\nThe move came on Thursday, January 15, 2026, one day after Federal Police launched the second phase of Operation Compliance Zero, a sweeping probe into alleged billion-real financial schemes involving investment funds and the Banco Master affair.
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\nPolice executed 42 search-and-seizure warrants across five states and obtained court-approved freezes of more than R$5.7 billion ($1.06 billion).
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Brazil probes Master-linked financial crimes
\nAuthorities have cited suspected crimes including criminal organization, fraudulent management of a financial institution, market manipulation, and money laundering.
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\nInvestigators are examining whether funds linked to the management group were used in suspected frauds connected to Banco Master, which was liquidated on November 18, 2025.
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\nPublic reporting around the investigation has cited suspicions involving forged credit instruments as high as R$17 billion ($3.15 billion), alongside separate discussions of credit portfolios around R$12 billion ($2.22 billion) tied to the broader BRB/Master episode.
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\nJoão Carlos Mansur, identified as founder of the Reag group, was reported among the targets of Wednesday’s searches; he was not in Brazil.
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\nThe firm has previously portrayed itself as caught up in earlier enforcement actions, including an investigation tied to alleged fuel-sector money laundering, while denying wrongdoing.
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\nUnder pressure, Reag sold parts of its business and gave up its distinctive Bothanic building near São Paulo’s Faria Lima financial district.
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\nThe Central Bank also ordered the liquidation of Advanced Corretora de Câmbio the same day, citing severe financial deterioration and serious regulatory violations; it was a small player, ranking 56th in the 2025 FX market, with 0.081% of volume and 0.14% of transactions.
Related coverage: Brazil’s Morning Call | Brazil Tests Aerial Taxis As São Paulo, Rio Plan First Verti This is part of The Rio Times’ daily coverage of Brazil affairs and Latin American financial news.
For the full timeline, see our Banco Master Scandal: Complete Timeline.