Brazil warns banks against enforcing U.S. Magnitsky sanctions

RIO DE JANEIRO, Aug. 20 (Xinhua) -- Brazilian Supreme Court Justice Alexandre de Moraes warned Wednesday that banks operating in Brazil could face penalties if they enforce U.S. sanctions against him under the U.S. Magnitsky Act.

"If banks decide to apply that foreign legislation internally, they may face domestic punishment," Moraes told reporters.

The remarks followed a statement from Justice Flavio Dino, who reaffirmed that orders from foreign governments only carry legal weight in Brazil if explicitly authorized by the Supreme Court.

The Global Magnitsky Human Rights Accountability Act allows Washington to impose sanctions, including asset freezes, credit card cancellations, and travel bans, on foreign individuals accused of human rights abuses or corruption.

Moraes was recently sanctioned by the Trump administration under the act. The U.S. Embassy in Brazil labeled him "toxic," warned that Americans are barred from engaging in commercial activities with him, while foreigners providing him material support could also face penalties.

In July, U.S. Secretary of State Marco Rubio announced visa cancellations for Supreme Court justices and their families. Moraes was specifically named due to his role in overseeing the alleged coup attempt involving former President Jair Bolsonaro.

The sanctions have raised concerns within Brazil's financial sector, where banks with operations in both countries may find themselves caught between conflicting Brazilian court orders and U.S. sanctions. ■