Publications

What happened to Will Bank?

This week, the Central Bank ordered the extrajudicial liquidation of Will Bank, triggering significant consequences, including:
• R$ 6.5 billion in CDBs (Bank Deposit Certificates) impacted
• 12 million customers affected nationwide
• Immediate blocking of accounts, transfers, cards, and new contracts
The situation is linked to the earlier liquidation of Banco Master in November of last year and highlights structural vulnerabilities the financial sector must urgently address.

Extrajudicial liquidation: what does it mean in practice?

Unlike court‑supervised reorganization (which aims to preserve business activity under judicial oversight), extrajudicial liquidation is decreed by the Central Bank when specific conditions compromise an institution’s continuity.

When does the Central Bank decree extrajudicial liquidation?
• Irreversible deterioration of the economic‑financial condition
• Serious violations of regulatory standards
• Losses that endanger creditors
• No viable path to recovery

What are the immediate consequences?
• Shutdown of activities
• Orderly withdrawal of the institution from Brazil’s National Financial System
• Liquidation of assets to pay creditors according to the legal order of priority set by banking law

Who is affected by Will Bank’s liquidation and how?

Clients and investors
• Must file claims (credit habilitation) in the liquidation process, respecting the legal priority order established by the Central Bank.

Controllers and executives
• Face potential asset unavailability and civil/administrative liability for management acts.

Fintechs in the sector
• Can expect tighter regulatory scrutiny and heightened corporate‑governance requirements from authorities.

Institutional investors
• Should enhance due diligence, with deeper analysis of the legal, regulatory, and operational structures of financial and payment institutions.

New Central Bank rules for fintechs in 2026: what changes?

The Central Bank is implementing a series of regulatory changes that significantly raise the bar for payment institutions, virtual asset service providers, and Banking as a Service partners (BaaS — Banking as a Service).

Corporate governance
Fintechs will need to establish compliance functions meeting the same expectations applied to traditional banks, including formal policies, committees, and robust internal controls.

Minimum capital
Institutions must meet new minimum capital levels based on the type of authorization granted by the Central Bank, ensuring stronger balance‑sheet resilience.

Cybersecurity
Implementation and evidence of information‑security controls will be required, with periodic audits and compliance reporting.

Contractual transparency
Clear allocation of responsibilities to end users will be mandatory, ending “pooled‑account” practices that obscure who is accountable for the contractual relationship.

AML/CFT (anti‑money laundering and counter‑terrorist financing)
Institutions must implement rigorous AML/CFT controls, including advanced transaction‑monitoring systems.

Why regulatory alignment is strategic for fintechs

Regulatory compliance is not just a legal obligation; it is a strategic opportunity for competitive positioning. Companies that move early:
• Build credibility with investors and customers
• Reduce operational and reputational risks
• Gain competitive advantage in the market
• Prepare for sustainable growth
The Will Bank case reinforces an important lesson: 2026 will demand a new level of governance and regulatory compliance from fintechs. Those that adapt proactively will do more than meet legal obligations — they will lay stronger foundations for sustainable growth and earn the trust of investors, partners, and customers.

What the moment requires

• A comprehensive review of governance processes
• Investment in compliance technology
• Team training for the new regulatory environment
• Specialized legal counsel in banking and fintech regulation

DGN Advogados (Donato & Garcia Neto Advogados) closely follows the transformation of Brazil’s digital financial sector to help organizations navigate the challenges and opportunities of this rapidly evolving market.