The Magnitsky Act: Scope, Applications, and Repercussions for Brazilian Citizens.

By Alberto Murray

Concept and Origin.

The Magnitsky Act is legislation originally enacted by the United States in 2012 in response to the death of Russian lawyer Sergei Magnitsky. He had exposed a corruption scheme involving Russian authorities and died in state custody under suspicious circumstances. The law was created to sanction individuals involved in serious human rights violations and transnational corruption. Over time, its scope was expanded through the Global Magnitsky Human Rights Accountability Act (2016), allowing the U.S. to apply sanctions to any foreign person or entity involved in such conduct, regardless of nationality.

Sanctions Provided

Sanctions under the Magnitsky Act primarily include:

Freezing of assets in the United States;
Ban on entry into U.S. territory;
Prohibition on transactions with U.S. individuals and companies.

These sanctions are administrative and unilateral in nature and do not depend on prior judicial conviction in the sanctioned person’s country of origin.

International Expansion

Other countries and blocs have adopted similar legislation, such as:

Canada (Justice for Victims of Corrupt Foreign Officials Act, 2017);
United Kingdom (Sanctions and Anti-Money Laundering Act, 2018);
European Union (Global Magnitsky Sanctions Regulation, 2020);
Australia and Estonia, among others.

Targeted Individuals and Countries

Since its enactment, the Magnitsky Act has been applied to hundreds of individuals and entities from various countries, including:

Officials from Russia, China, Venezuela, Myanmar, Saudi Arabia, Iran, and North Korea;
Businesspeople, security forces personnel, intelligence agents, and political leaders involved in:

(a) Torture, extrajudicial executions, forced disappearances;
(b) Systemic corruption, such as embezzlement of public funds and bribery.

Notable examples include:

Saudi officials involved in the assassination of journalist Jamal Khashoggi;
Myanmar generals implicated in the repression of the Rohingya people;
Venezuelan officials tied to political repression and civil rights violations.

Impact on Brazilian Citizens

Technically, a Brazilian citizen may be sanctioned under the Magnitsky Act if deemed by U.S. authorities (or those of other countries with similar laws) to be responsible for serious human rights violations or internationally significant corruption.

Possible consequences include:

Freezing of assets held in U.S. bank accounts;
Inability to travel to or conduct business with entities in the U.S.;
Inclusion on international sanctions lists, with banking and diplomatic implications.

However, there is no direct civil or criminal effect in Brazil unless Brazilian authorities decide to cooperate judicially or administratively with the sanction, which depends on sovereign discretion and often on international agreements.

Legal Limitations

Application of the Magnitsky Act to Brazilian nationals respects Brazilian sovereignty: it has no direct extraterritorial effect on civil or political rights within Brazil. Nevertheless, its practical effects can be far-reaching internationally, especially in financial operations, global reputation, and international mobility of the sanctioned individual.

Practical Effects of the Magnitsky Act on a Sanctioned Brazilian Citizen

Although the Magnitsky Act is an extraterritorial, administrative, and unilateral sanction (with no legal force in Brazil), its practical effects can be extensive, particularly when involving U.S. companies or those operating with U.S.-based technology and infrastructure. Key impacts include:

7.1. Digital Services and Technology Platforms

If a Brazilian individual is sanctioned under the Magnitsky Act, U.S. companies are legally required to immediately terminate any direct or indirect commercial relationship with that person. This may include:

Suspension or blocking of accounts with services such as:

Google (Gmail, YouTube, Google Drive)
Apple (iCloud, App Store)
Meta (Facebook, Instagram, WhatsApp)
Amazon (product purchases and Prime Video access)
Microsoft (Outlook, OneDrive, Teams, Xbox Live)
Netflix, Spotify, and other U.S.-based streaming platforms

These companies, even when operating in Brazil, follow the laws of their home country and block accounts linked to sanctioned individuals based on name, taxpayer ID (CPF), email, IP address, credit card information, physical address, and other associated data.

7.2. Use of Apps and Digital Stores

Block downloading or updating apps via Google Play or Apple App Store;
Restrictions on digital payment services such as Google Pay, Apple Pay, and PayPal.

7.3. Credit Cards and Financial Operations

Automatic cancellation of credit or debit cards issued by institutions operating under U.S. networks, such as:

Visa
Mastercard
American Express
Elo (in some cases, due to partnerships with international issuers)

This results from legal requirements prohibiting these companies from transacting with sanctioned individuals.

Restrictions also apply to the use of digital currency platforms or banks with U.S. correspondents, including cryptocurrency exchanges operating with dollars through U.S. institutions.

7.4. Banks and Brokerages in Brazil

Although the sanction does not compel Brazilian institutions to act, many avoid relationships with sanctioned individuals to prevent retaliation from the international financial system (such as losing access to U.S. dollar clearing or being subject to secondary investigations). As a result, the sanctioned person may:

Have bank accounts closed due to internal compliance procedures;
Be blocked from purchasing foreign currency (even for travel or business);
Be prevented from making international transfers, especially in U.S. dollars.

7.5. Reputational and Commercial Barriers

Brazilian companies operating with the U.S. or relying on U.S. technology may refuse to contract with or maintain relationships with the sanctioned individual out of fear of secondary sanctions (the so-called “chilling effect”).

This includes law firms, auditing firms, multinationals, e-commerce platforms, international shipping companies, insurers, travel agencies, and more.

7.6. Diplomatic and Mobility Restrictions

A sanctioned Brazilian citizen will not be able to obtain a U.S. visa or even make a flight connection in U.S. territory.

There may also be difficulties obtaining visas for U.S.-allied countries such as the United Kingdom, Canada, Australia, and members of the European Union, especially if they recognize or adopt similar measures.

Final Considerations

Although the Magnitsky Act does not have binding legal force in Brazil, it can materially affect Brazilian citizens when involving companies or financial flows with direct or indirect connections to the United States. In practice, this can result in digital, financial, commercial, and even social exclusion — even without any legal proceedings in Brazil.

The impact is amplified by the global interdependence of payment systems, technology, and communication, all of which are heavily anchored in U.S. infrastructure.

July 2025