Brazil police target Rio pension fund in probe linked to Banco Master, sources say

Reuters

Fri, January 23, 2026 astatine 11:49 AM CST 1 min read

RIO DE JANEIRO/BRASILIA, Jan 23 (Reuters) - Brazil's national constabulary connected Friday served hunt and seizure warrants against Rio de Janeiro ​state's pension money successful the latest improvement tied to the ‌collapse of lender Banco Master, 3 sources told Reuters.

The cognition was portion of an ‌investigation into astir 970 cardinal reais ($183.56 million) successful alleged fiscal bills issued by a backstage bank, the constabulary said successful a statement, without naming their target.

Sources acquainted with the substance said the probe was related ⁠to Master, which was unopen ‌down successful November by Brazil's cardinal slope amid a terrible liquidity situation and violations of financial-system rules.

The liquidation ‍triggered the largest-ever payout by Brazil's backstage deposit warrant fund, but the securities purchased by Rio de Janeiro state's pension money Rioprevidencia were not eligible ​for coverage.

In a statement, Rioprevidencia said it is protected by a ‌court ruling issued successful December, which ordered the retention of astir 970 cardinal reais related to the invested amounts successful bid to safeguard the status assets of progressive and retired civilian servants and pensioners.

"As a result, the concern is already being repaid done the retention of ⁠proceeds from payroll-deducted loans that would different ​have been transferred to Banco (Master)," the money ​said.

According to Rioprevidencia, this means the funds are disposable to the pension system's currency flow, and the concern is ‍expected to beryllium ⁠fully settled wrong astir 2 years.

The pension money added that each of its investments "strictly complied with existent authorities and oversight rules."

($1 = ⁠5.2844 reais)

(Reporting by Rodigo Viga Gaier successful Rio de Janeiro and Lisandra Paraguassu ‌and Ricardo Brito successful Brasilia; Writing by Isabel Teles; Editing ‌by Gabriel Araujo and Chris Reese)