Brazil Imposes Financial Sanctions on Targeted Individuals and Entities

Brazil has implemented a range of economic and financial sanctions aimed at restricting the activities of targeted individuals and entities. These sanctions are based on United Nations (UN) Security Council resolutions and sanctions committees, as well as requests from foreign central authorities.

Sanctions Regime

The Brazilian government’s sanctions regime is governed by Article 2 of Law No. 13,810/2019. According to this article, assets may be frozen in two circumstances:

• To execute UN Security Council resolutions or designations by its sanctions committees
• At the request of a foreign central authority, provided that the request meets applicable legal principles and provides objective grounds for freezing assets

List of Targeted Individuals and Entities

The Brazilian government maintains a list of individuals and entities whose assets are subject to unavailability. However, this list has never been published. The Ministry of Justice and Public Security is responsible for communicating with those affected by asset freezes.

Restrictions on Economic Activities

Brazil’s sanctions regime includes other restrictions on economic activities, such as:

• Import and export restrictions
• Bans on the export of certain goods
• Requirements for prior approval for specific exports

For example, Brazil prohibits the export of arms, ammunition, and military equipment to countries subject to UN economic sanctions.

International Initiatives

Brazil participates in international initiatives such as the Kimberley Process Certification Scheme, which requires the issuance of a certificate for raw diamond exports.

Compliance

The Brazilian government does not issue licenses to permit activities that would violate economic and financial sanctions. However, exporters must verify whether specific goods are subject to controls or embargoes before exporting them.

• There is no provision in Brazilian legislation for exemption licenses.
• Businesses are not required to report on assets frozen under sanctions.
• The Ministry of Justice and Public Security is responsible for communicating with those affected by asset freezes.

Purpose of Sanctions Regime

Brazil’s sanctions regime is designed to:

• Implement UN resolutions and international agreements
• Protect the country’s economy and environment

Businesses operating in Brazil must be aware of these restrictions and ensure compliance with the relevant regulations to avoid legal consequences.