BRAZIL Law and Practice Contributed by: Octaviano Duarte, Henrique Forssell and Marcelo Lucidi, Duarte Forssell Advogados
RENAJUD (Freezing of Vehicles) RENAJUD is an electronic system used in Brazil for the automated search and blocking of vehicles to enforce judicial decisions. The system is operated by the Brazilian National Traffic Department (DETRAN) and allows judicial authorities to identify vehicles owned by debtors and block them from being sold A Brazilian court may exercise discretion to order the plaintiff to provide a judicial bond, such as a bond or cash deposit, to secure the defendant against poten - tial losses resulting from precautionary measures, such as asset freezes or injunctions. The purpose of a judicial bond is to provide security for the defendant in cases where there is a risk that the precautionary measure may not be reversible or may generate dam - ages if revoked. or transferred. Judicial Bond 2. Procedures and Trials 2.1 Disclosure of Defendants’ Assets Disclosure of Assets in Legal Proceedings In addition to information obtainable via public sources (see below), a claimant in a civil proceeding can peti - tion the court to order the defendant to disclose their assets and notify third parties to provide any informa - tion available about the assets held by the defendant. In enforcement proceedings, where the defendant fails to disclose its assets after being duly summoned, the judge may impose a fine of no more than 20% of the updated debt (Article 774 of the Civil Procedure Code). Generally, to obtain disclosure of assets held by nominees on the defendant’s behalf, the plaintiff must present strong evidence that the assets belong to the defendant. As a rule, there is no cross-undertaking in damages
to prevent the defendant from dissipating assets or concealing them. This involves presenting evidence to substantiate a risk of asset dissipation or conceal - ment and demonstrating a likelihood of success on the merits. Brazilian courts typically consider factors such as the strength of the claimant’s legal arguments, the availability of evidence and the potential harm to both parties when assessing the likelihood of success. Non-compliance with a court order may result in freez - ing orders, monetary penalties, criminal prosecution or other consequences, for parties to judicial proceed - ings as well as third parties. SISBAJUD (Freezing of Bank Accounts) SISBAJUD, which stands for “ Sistema de Busca de Ativos do Poder Judiciário ” (Judiciary Asset Search System), is a centralised electronic system used by the Brazilian Judiciary to facilitate the search and freezing of assets held in financial institutions. It is primarily utilised in civil and enforcement proceedings to enforce court orders, judgments and other legal obligations. The SISBAJUD system covers all financial institutions operating in Brazil, including banks, credit unions, investment firms and other financial entities. It allows judicial authorities to search for and identify assets held in accounts belonging to debtors or defendants named in legal proceedings. Judges access the SISBAJUD system through a secure online portal. They can input specific search criteria, such as the name of the debtor or defend - ant, taxpayer identification number (CPF or CNPJ), or other identifying information, to initiate a search for assets held in financial institutions. Once a search is initiated and assets are identified, judicial authorities can issue electronic orders through the SISBAJUD system to freeze bank accounts and other financial assets belonging to the debtor or defendant. The freezing order is transmitted electronically to the rel - evant financial institutions, which are required to com - ply with the order immediately and block access to the frozen assets.
for applications for disclosure of assets. Breach of Fiscal and Banking Secrecy
Breach of fiscal (tax) and banking secrecy of a debtor is a legal measure that can be applied under certain circumstances, typically in the context of legal pro - ceedings involving debt collection, enforcement of
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