NextFin news, On Tuesday, September 2, 2025, the U.S. Department of the Treasury, through its Office of Foreign Assets Control (OFAC), sent letters to five major banks operating in Brazil—namely Itaú Unibanco, Santander, Bradesco, Banco do Brasil, and BTG Pactual—raising questions about their compliance with the Magnitsky Act sanctions imposed on Supreme Federal Court Justice Alexandre de Moraes. The inquiries were made in São Paulo, Brazil.
The letters requested information on what measures these financial institutions have taken or are taking to comply with the sanctions against Justice Moraes, who was added to the OFAC sanctions list in July 2025. The sanctions freeze any assets he may hold in the United States and prohibit U.S. financial institutions and companies from engaging in transactions with him.
The notification coincided with the first day of the trial of former Brazilian President Jair Bolsonaro at the Supreme Federal Court. The sanctions against Moraes include restrictions on the use of U.S.-based credit card networks such as Mastercard and Visa.
The inquiry by the U.S. Treasury follows a complaint filed by Brazilian lawmaker Eduardo Bolsonaro to the U.S. Treasury Secretary. The legal departments of the notified banks are currently reviewing the communication from OFAC.
The Magnitsky Act is a U.S. law that imposes sanctions on foreign individuals involved in human rights abuses or corruption. The application of this law to a sitting Brazilian Supreme Court Justice marks a rare and notable instance of its use.
Sources for this report include Folha de S.Paulo and CNN Brasil, with additional confirmation from Reuters and Invezz news outlets.
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