What it is, how it works and what are its impacts

The magnitsky law, a United States legislation to punish foreigners involved in corruption and serious human rights violations, returned to the spotlight in July 2025 after the inclusion of Alexandre de Moraes, Minister of the Supreme Court (STF), on the sanctioned list. The measure caused a strong reaction in Brazil and brought questions about the extraterritorial effects of American sanction policy.

Since its approval in 2012 and expansion in 2016, Magnitsky Law has reached more than 260 people and entities in different parts of the world. Sanctions vary from the blockade of financial assets in the US to the restriction of entry in the country, with an impact that can spread to banks and companies of other jurisdictions.

Understand the origin of the law, what it imposes on the sanctioned, the Moraes case and which other individuals have been targeted by the world.

What is the magnitsky law?

Global Magnitsky law is a legal instrument authorizing the United States to apply economic sanctions and visa restrictions against foreign individuals involved in significant corruption or serious human rights violations.

Examples of sanction conduct include murder, human trafficking, political persecution, money laundering, torture and abuse of state power. The scope is international because much of the global financial system somehow goes through institutions under American jurisdiction.

Origin and Expansion of the Law

The first version of the law was passed in 2012 during the Barack Obama government, and had a specific focus on Russia. It emerged after Sergei Magnitsky, a lawyer who denounced a billionaire tax fraud and died in prison in Moscow in 2009.

In December 2016, the US Congress approved the Global Magnitsky Human Rights Accountability Act, which expanded the scope to any country. The following year, an executive order detailed the application mechanisms and gave the Treasury Department through the OFAC Financial Control Agency, the responsibility to implement sanctions.

How do sanctions work?

The most immediate effect is the prohibition of entry in the United States, with the cancellation of visas already issued.

Then there is a blockade of goods and rights on US soil, such as real estate, bank accounts, investments or stakes in companies.

But even those who do not have equity in the US can be affected. Because the international financial system depends on dollar transactions and access to US banks, institutions from other countries tend to restrict operations with sanctioned individuals. This can make it difficult to obtain credit, make contracts unfeasible and affect multinational relationships.

Credit cards issued in Brazil are not automatically canceled, but flags such as Visa and Mastercard, based in the US, may apply restrictions if they identify risk of non -compliance with sanctions. The effective range depends on the law of law enforcement that US authorities decide to adopt, a point that Brazilian banks still analyze with caution.

The global expansion of magnitsky

Although born in the US, the logic of the law spread to other countries. European Union, Canada, the United Kingdom and Australia have approved similar legislation, also known as “magnitsky acts”, which allow us to freeze assets and impose travel restrictions on foreigners accused of corruption or human rights violations.

This movement has transformed magnitsky into one of the main contemporary foreign policy tools – a legal instrument with concrete effects on economics, diplomacy and the balance of global power.

The Moraes Case and the Reflexes in Brazil

The decision to sanction Alexandre de Moraes generated a strong reaction in the Brazilian government. President Luiz Inacio Lula da Silva classified the measure as “unacceptable interference”, while STF ministers defended Moraes in the name of judicial independence.

In practice, there is no indication that Moraes has goods or accounts in the United States. Still, Brazilian banks began to review compliance procedures to avoid risks of secondary sanctions amid a scenario of regulatory uncertainty.

The Brazilian government has announced retaliatory rates on American products and is studying to resort to the World Trade Organization (WTO) against the decision. The episode should mark a new phase of bilateral relations between Brasilia and Washington, with potential economic and political impacts.

Who has been the target of the law?

According to US Congress data, about 260 people and entities were sanctioned until August 2025 under the global magnitsky act. Among the best known examples are: