The minister, of the (Supreme Federal Court), ruled on Monday (18) that court orders and executives of foreign governments need to be approved in Brazil to be effective.
The decision, granted in a process on the tragedy of Mariana (MG), seeks to shield the Minister of the Impact of Magnitsky Law – financial sanction imposed on the magistrate by the government of.
Dino says that “foreign laws, administrative acts, executive orders and similar diplomas do not have effects on: a) natural persons by acts in Brazilian territory; b) legal relations celebrated here; c) goods located here, deposited, ed) companies that work here”.
The minister states that “extraterritoriality, in the legal scope, is absolutely exceptional” and highlights the risk to the national security of immediate compliance with foreign decisions about Brazil.
“[A violação à decisão] It is an offense to national sovereignty, public order and morals, therefore the ineffectiveness of such laws, acts and sentences emanating from a foreign country is presumed, “says the minister.
“Such presumption can only be removed, hereinafter, by express deliberation of the Supreme Court, in constitutional complaint, offered by any harm, or other appropriate lawsuit,” he concludes.
The order was sent to the Central Bank, Febraban (Brazilian Bank Federation), CNF (National Confederation of Financial Institutions) and CNSEG (National Confederation of General Insurance, Private Welfare and Life, Supplementary Health and Capitalization Companies).
Dino granted the decision about 15 days after Supreme Ministers met with banks presidents and representatives. A magistrate told the Sheet that the meeting was promoted by the bankers, to explain the extent of the financial sanctions applied against Moraes.
The ministers were informed that financial movements abroad in dollars would be hit by the magnitsky law. Restrictions on accounts or transfers in Brazil would not yet be at the table, the minister said under reserve.
Action on Mariana disaster
Dino’s determination was given in the context of an action of IBRAM (Brazilian Mining Institute), which tried to prevent municipalities from Minas Gerais and Espírito Santo from continuing an action in the United Kingdom court by the Mariana tragedy, caused by the breaking of a dam for ten years.
The lawsuit was opened in 2024. The institute tries to achieve in the Supreme Court the declaration of unconstitutionality of municipalities appeal to foreign justice “to the detriment of the Brazilian jurisdiction, on facts that occurred in Brazil and governed by Brazilian law”.
The STF approved in the last year an agreement of R $ 170 billion between the companies Samarco Mineração, Vale and BHP Billiton and the Union, the states of Minas Gerais and Spirit Santos and representatives of communities affected by the tragedy.
A. The focus of the process is at BHP, Anglo-Australian company that controls Samarco alongside the Brazilian Vale.
Dino justifies his decision based on a petition sent to the Supreme on March 6 this year. The document is a precautionary measure granted by the British court for the benefit of municipalities interested in the process.
The country’s decision says that the defendant should petition the Supreme to give up his request on the termination of contracts and agreements entered into between the municipalities about Mariana’s tragedy.
Dino states that the measure is not effective for companies and municipalities based in Brazil. “The submission of a national state to the jurisdiction of another is an authentic ‘act of empire’, thus understood as the exercise of their sovereign prerogatives,” he adds.
Banks
The minister took advantage of the theme of national sovereignty and the discussion on extraterritoriality raised in the action of Ibram to advance in the scope of the process and shot Moraes. The decision must be taken to the Supreme Plenary for referendum.
The magnistky law provides that it can be included in the list of sanctioned those who collaborate with US condemned conduct.
The punished person receives a sanction from OFAC, a foreign asset control office, which belongs to the US Treasury Department.
Through the decision, the US government determines the freezing of any good or asset that the sanctioned person has us and can also ban US financial entities from doing dollar operations with them.
The measure would include the use of MasterCard and Visa credit card flags, for example. The effects on Moraes’ transactions in reais in Brazil are still under bank analysis.
So far, however, Brazilian banks have understood that only international transactions in dollars are blocked, and those of reais would be maintained.
The deputy (-SP) son of former President Jair Bolsonaro (PL) says he has transmitted to the US Treasury Secretary Scott Bessent, the assessment that Brazilian banks to Moraes by Magnistky law in its entirety.