Brazilian Banks Face Risks Over Magnitsky Act as Bolsonaro Charged with Coercion and 30 Million Reais Funds Revealed

Brazilian banks face a complex situation following a judicial decision related to the application of the U.S. Magnitsky Act sanctions. Legal experts and officials, including jurist Gustavo Sampaio and Welber Barral, president of the Brazilian Institute of Foreign Trade, have highlighted the delicate position of banks that may cancel accounts of individuals sanctioned under the Magnitsky Act. The Brazilian Supreme Federal Court (STF) has indicated that banks could be penalized if they enforce American sanctions, with Minister Alexandre de Moraes emphasizing that the judiciary should not yield to political or economic pressures. Governor Flávio Dino stated that the STF's decision aims to prevent future conflicts and that the court will not succumb to threats or financial influence. Meanwhile, the Federal Police of Brazil have filed charges against former President Jair Bolsonaro and his son Eduardo for allegedly attempting to coerce the Supreme Court to obstruct ongoing trials related to an attempted coup. Investigations revealed Bolsonaro received over 30 million reais between March 2023 and February 2024, including nearly 20 million reais via Pix transfers from supporters. Authorities also found indications that Eduardo Bolsonaro used his wife's bank account to conceal funds and avoid asset freezes. Evidence includes messages showing Jair Bolsonaro coordinating with allies to protect his son's political position. Bolsonaro's defense has denied any violation of court-imposed restrictions or attempts to seek asylum. Additionally, Minister André Mendonça criticized judicial activism, asserting that judges should be respected for their integrity rather than feared. The unfolding legal and political developments underscore tensions between Brazil's judiciary, political figures, and financial institutions amid enforcement of international sanctions.