Top Bank Official Arrested in Brazilian Corruption Probe

Brazil's federal police arrested Paulo Henrique Costa, former head of lender BRB, amid a corruption probe linked to Banco Master. Costa, who denies wrongdoing, is accused of being involved in a fictitious credit scheme and receiving significant bribes. The probe has impacted Brazil's financial sector.

Brazil's federal police have arrested Paulo Henrique Costa, the former head of lender BRB, in connection with an ongoing investigation into corruption linked to the now-defunct Banco Master, according to sources close to the case.

The investigation has revealed accusations involving a scheme of fabricated credit portfolios exchanged between Banco Master and BRB. Supreme Court Justice Andre Mendonca cited evidence suggesting that Costa received nearly 146.5 million reais in bribes, with substantial payments reportedly already traced.

The probe, which has already seen the arrest of a related lawyer, Daniel Monteiro, is part of Operation Compliance Zero. Brazilian authorities are rigorously pursuing charges related to money laundering, corruption, financial crimes, and organized crime, as they continue to unravel the intricate network of alleged misconduct.