Brazilian banks are caught in shooting between Trump and Moraes, says FT

Understand what Magnitsky Law is an article published on Thursday (4/9) by the British newspaper Financial Times states that Brazilian banks are in the middle of a shooting between US President Donald Trump and Minister Alexandre de Moraes of the Supreme Court (STF). “As an unprecedented diplomatic crisis between Washington and Brasilia does not give signs of improvement, the large banks of the Latin American country run the risk of being caught in cross fire,” says an article signed by Michael Pook, who is correspondent of the newspaper in São Paulo. 📱 Bake the G1 app to see real -time news and for free other vehicles have reported that Brazilian banks have already started receiving letters from the US government charging the application of American sanctions (read below). Financial Times article states that coffee farmers and ranchers are already among the victims of Trump’s tariff against Brazil, and that it is now the turn of Brazilian banks to suffer from the diplomatic crisis. Last month, 50% rates entered into force against Brazilian exported products-Trump’s retaliation for what he calls “political witches” against former President Jair Bolsonaro. The newspaper recalls the financial sanctions adopted by the Trump government against Alexandre de Moraes and the decision of STF Minister Flávio Dino that companies can be punished in Brazil if they adopt measures against Moraes. “This puts a difficult choice for banks here [no Brasil]: Either they risk disrespecting American sanctions or disobeying the highest court in the country, “writes Pooler. The newspaper says big banks – such as Itaú Unibanco, Bradesco, Santander Brasil, BTG Pactual and Banco do Brasil – saw their actions fall after Dino’s decision.” With international operations or dollar financing lines, “says the article. The newspaper states that there is still an open debate about how rigorous Brazilian banks would have to be in the application of so -called magnitsky sanctions – and what interpretation will be given by the foreign asset control firm (OFAC), US government agency linked to the US Treasury Department and responsible for charging banks.” Faria Lima Banks – the Brazilian version of Wall Street – there is a growing consensus that prohibitions extend to anything involving US dollars or services, such as credit and debit cards operated by Mastercard or Visa, but not purely national transactions in local currency, “says the Financial Times. By this interpretation, the Moraes accounts would not be the target of sanctions. The Trump government would no longer be rigorously against Brazilian banks in this case, because it is a political problem of the US president with the STF minister. Moraes would be in risk of being without access to bank accounts – needing to resort to cash transactions or bank cards from others. to a single individual. But if Bolsonaro is considered guilty in his trial, the fear is that other magistrates who vote for the conviction will be dealt with in a similar way, “says the article in the newspaper.” Brazilian business leaders expect the supreme cut in the country not to risk economic self-destruction by not allowing financial institutions to comply with the sanctions. ” They reported that Brazilian banks have already started receiving letters from the US Treasury Department charging measures within magnitsky sanctions – used by the Trump government against Moraes. Banking. “” The bank acts with strict observance of all applicable local and international rules and laws, and maintains its governance processes aligned with global best practices, “he said. The Brazilian Federation of Banks (Febraban) told BBC News Brazil that it did not receive information about the eventual communication of the US government.” FEBRABAN, “said the entity, in a statement. The US Treasury Department did not respond to the contact made by BBC News Brazil. Brazilian banks are caught in shooting between Trump and Moraes, says FT Getty Images via BBC

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