US Treasury Investigates Brazilian Banks Over Sanctions

The US Treasury has reportedly queried Brazilian banks over sanctions, with Banco do Brasil among those involved. The bank operates in five areas, including retail banking, corporate banking, investment banking, market banking, and asset management, with a network of over 4,770 branches in Brazil.

The U.S. Treasury Department has reportedly sent inquiries to several Brazilian banks, including Banco do Brasil, regarding measures they are taking to comply with the Magnitsky Act. The act, designed to impose economic penalties on individuals deemed to have records of corruption or human rights abuse, has seen recent use in targeting Brazilian Supreme Court Justice Alexandre de Moraes, who was sanctioned in late July [1].

Banco do Brasil, Bradesco, Itaú, Santander, and BTG Pactual received notices from the U.S. Treasury's Office of Foreign Assets Control, which asked about the banks' compliance with the Magnitsky Act. The notice was described as generic and standard, citing the act's provisions [1].

The sanctions on Justice Moraes, who oversees the case involving former President Jair Bolsonaro, have raised questions about potential spillovers for Brazilian banks with U.S. operations. The uncertainty grew after Justice Flavio Dino ruled that foreign laws and decisions do not automatically apply to Brazilians within Brazil [1].

Banco do Brasil operates in five key areas: retail banking, corporate banking, investment banking, market banking, and asset management. With a network of over 4,770 branches in Brazil, the bank is a significant player in the country's financial landscape. However, the recent sanctions and inquiries could potentially impact its operations and relationships with U.S. entities [1].

In contrast, Deutsche Bank, which has a different strategic focus, is continuing to invest in its investment banking and retail units. The bank's CEO, Christian Sewing, has emphasized the need to improve capital allocation across business units and highlighted the retail unit as a key growth area driven by rising demand for investment products in Germany [2].

The upcoming strategic update from Deutsche Bank, scheduled for November 17, is expected to provide further details on the bank's plans for the years ahead. The bank will continue to focus on its core strengths, including its investment banking division and its retail unit, while addressing the need to improve capital allocation across business units [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UQ0KU:0-us-treasury-queries-brazilian-banks-over-sanctions-source-says/
[2] https://www.ainvest.com/news/deutsche-bank-continue-investing-investment-banking-retail-units-strategy-2509/