BB files suit against AGU over rumors on social media about US sanctions due to Magnitsky

Banco do Brasil asked the Federal Attorney General's Office (AGU) this week to take appropriate action after being targeted on social media by accusations that it was facing sanctions from the United States government under the Magnitsky Act, which was applied to Justice Alexandre de Moraes of the Federal Supreme Court (STF). The state-owned bank is responsible for paying the salaries of the Court's judges.

According to the official letter sent to the agency, Banco do Brasil claims there is a movement of misinformation and pressure against the institution and its president, Tarciana Medeiros. The rumors of sanctions are allegedly intended to influence bank customers to withdraw their investments, which constitutes a crime against the financial system.

"Threats aimed at undermining institutionalized resources at Banco do Brasil, through the dissemination of fake news regarding the existence of foreign sanctions or the freezing of assets of Supreme Court justices, compromise the stability of the economic, financial, and social order; they jeopardize the balanced economic development of the country," reads an excerpt from the petition, seen by Folha de S. Paulo and G1 .

Banco do Brasil said in a statement that it is monitoring the "emergence of false and malicious publications that spread misinformation on social media, with the aim of generating panic, and that it will take appropriate legal measures to protect its reputation, its customers and its employees."

According to investigations, the state-owned bank's board implemented a damage containment strategy, calling its 100 largest investors to clarify the rumors. Employees and managers were also reportedly instructed to speak with clients.

The rumors and the request for an investigation by the AGU (Brazilian Attorney General's Office) come at a time when the bank itself had reportedly blocked Moraes's credit cards bearing U.S. flags, in compliance with the Magnitsky Act. U.S. law prohibits sanctioned individuals from conducting financial transactions in its territory.

According to investigations, Moraes was allegedly offered a Brazilian-branded credit card—Elo—which processes and settles payments in Brazil. However, the operating rules prohibit dealing with customers sanctioned by agencies in the United States, the United Nations (UN), the European Union, and the United Kingdom. The card is controlled by Banco do Brasil, Caixa, and Bradesco.

This Friday (22), Minister Flávio Dino, of the Federal Supreme Court (STF), defended the decision handed down this week, which seeks to render the Magnitsky Law ineffective in Brazil . The measure caused Brazilian banks to lose R$41 billion in market value due to fears of sanctions from the United States.

Moraes himself had reaffirmed his colleague's attitude on Wednesday (20). “Now, in the same way, if the banks decide to apply the law internally, they cannot. And then they can be penalized internally,” he said in an interview with Reuters .

Gazeta do Povo has learned that the State Department and the Treasury Department are discussing how to enforce the sanctions more effectively. This could involve issuing a circular or even directly notifying banks incorporated in the United States, such as BB América and Itaú. However, there is no timetable yet.

The card companies were contacted by this reporter, but received no response. The Brazilian banks consulted have reaffirmed that they do not comment on the situation of account holders, citing tax secrecy.

Febraban has also already stated in a note that it will not comment.