Brazil: Senators Demand Central Bank Actions to Combat Irregularities

Brazil.– November 26, 2025 – www.zonadeazar.com Senators from the Economic Affairs Committee (CAE) pressed the president of the Central Bank (BC), Gabriel Galípolo, for more effective actions to control irregular financial transactions, particularly by fintechs allegedly financing organized crime and by betting companies. Lawmakers also questioned anomalies such as the unusually rapid growth of Banco Master.

Galípolo and the president of the Financial Activities Control Council (Coaf), Ricardo Saadi, attended a hearing on Tuesday (25), invited by committee chairman Senator Renan Calheiros (MDB-AL), especially to explain the agreement signed between the BC and former president Roberto Campos Neto, which allowed the closure of an administrative process opened while he still headed the institution.

Renan stated that Campos Neto was accused of several irregularities when he was president of Santander, prior to his role at the Central Bank. He emphasized that Campos Neto “paid R$ 300,000 to escape responsibility for the scheme” and was shielded by the BC’s board.

According to Renan, the irregularities included registration deficiencies, lack of proof of revenue, missing documents and other serious failures. He requested additional information, including who determined the fine amount and who paid it.

Galípolo clarified that the Foreign Exchange Law was approved by Congress and denied that it contains loopholes for criminal matters. He stated that “the Central Bank does not sign leniency agreements, much less to interrupt a Federal Police investigation,” and that any identified irregularities are forwarded to the competent authorities.

He added that the BC is not empowered to judge the convenience of investment decisions and stressed that “it is essential that each institution perform its proper role.” He said the agreement does not affect any ongoing investigation.

Ailton de Aquino Santos, BC’s Director of Supervision, stated that the process detailed the control failures at Banco Santander.

Bets and Fintechs

Senator Eduardo Braga (MDB-AM) questioned the BC’s oversight of transactions involving fintechs and betting companies. He stated that “the Brazilian financial system is being ridiculed” and that action is urgently needed.

He argued that “pouch accounts” (bank accounts opened by fintechs at traditional banks) are a major gateway for tax evasion and criminal activity, and pointed out that betting companies’ funds reside in the banking system. He said Brazil has 1,592 operating fintechs, of which only 335 are supervised by the BC.

“That means more than 1,200 fintechs operate without Central Bank monitoring, without providing information to Coaf. It has become a party,” he said.

Citing data from the Brazilian Forum for Public Safety and Instituto Esfera, Braga said criminal groups moved R$ 350 billion through the banking system in three years, with tax evasion estimated at R$ 90 billion. Losses from online fraud and cellphone thefts total an additional R$ 186 billion.

Senator Izalci Lucas (PL-DF) added that fintechs were used to send billions overseas, as revealed by the Bets Parliamentary Inquiry Commission, without oversight by the BC or the Ministry of Finance.

Saadi stated that after identifying the use of accounts by criminal organizations, Coaf, BC and the Federal Police worked together to identify weaknesses, leading the BC to issue new regulations to prevent future abuses.

Galípolo defended the need for sufficient resources for the Central Bank to invest and asked senators to support the constitutional amendment expanding its financial, fiscal and budgetary autonomy (PEC 65/2023).

Banco Master

Several senators questioned the recent liquidation of Banco Master. Senator Leila Barros (PDT-DF) said signatures were being collected to open a parliamentary inquiry. She asked whether the large-scale transactions between BRB and Master had been flagged as atypical or irregular by the BC.

Senators Jorge Seif (PL-SC) and Jaime Bagattoli (PL-RO) also pressed for explanations on what measures the BC will adopt to prevent similar cases.

Esperidião Amin (PP-SC) compared the situation to “scenes from the last century,” with fake assets circulating in the market. He asked whether there was no algorithm capable of detecting Banco Master’s anomalous growth.

Galípolo stated that all banks are “fallible institutions” and that the BC complied with all legal procedures in the liquidation process.

Inflation Target

Galípolo also addressed Brazil’s inflation target, noting that the BC follows the legal mandate to pursue a 3% target, with a tolerance band of ±1.5 percentage points. He acknowledged that the target has not been met in the first 11 months of the year and likely will not be met during his term.

“Inflation is gradually decreasing, more slowly than we would like, but at the same time it reduces the risk of an abrupt economic downturn,” he said.

Edited by: @_fonta zonadeazar.com