Decree No. 9,825, dated June 5, 2019, was published yesterday in the Official Gazette, which provides for measures on enforcement of sanctions against persons investigated or accused of terrorism, its financing or related acts.
The Decree includes sanctions imposed by resolutions of the UN Security Council as well as by other countries, or even as imposed by Brazilian authorities.
Sanctions may be applied against individuals, companies or any other entities, and may include:
- Import or export restrictions;
- Blocking of assets – that is, prohibitions to transfer, convert, dispose or make assets available, directly or indirectly; and
- Restrictions on entering or leaving Brazil.
The Decree highlights the central role of the Department of Asset Recovery and International Legal Cooperation of the Ministry of Justice and Public Security, in coordinating with other regulatory and oversight agencies, for adopting the necessary measures to comply with sanctions. The Department will also publish lists of natural persons, legal entities and entities subject to sanctions, reinforcing the necessity to review applicable Brazilian and international regulations and sanctions on a case-by-case basis on imports and exports operations.
This new Decree can be seen as part of a movement to expand and consolidate the application of sanctions in Brazil, including economic sanctions, which demonstrates the importance of implementing solid trade compliance controls, considering the potential for damages (including, and especially, reputational) for persons and companies sanctioned in case of non-compliance with measures imposed by other countries and Brazil.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.