BRAZIL Law and Practice Contributed by: Octaviano Duarte, Henrique Forssell, Marcelo Lucidi and Mayara Rahman Rufino, Duarte Forssell Advogados
search criteria, such as the name of the debtor or defendant, 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 elec - tronic orders through the SISBAJUD system to freeze bank accounts and other financial assets belonging to the debtor or defendant. The freez - ing order is transmitted electronically to the rel - evant financial institutions, which are required to comply with the order immediately and block access to the frozen assets. RENAJUD (Freezing of Vehicles) RENAJUD is an electronic system used in Brazil for the automated search and blocking of vehi - cles to enforce judicial decisions. The system is operated by the Brazilian National Traffic Depart - ment (DETRAN) and allows judicial authorities to identify vehicles owned by debtors and block them from being sold or transferred. Judicial Bond 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 potential 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 cas - es where there is a risk that the precautionary measure may not be reversible or may generate damages if revoked. 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 proceed -
ing can petition the court to order the defendant to disclose their assets and notify third parties to provide any information available about the assets held by the defendant. In enforcement proceedings, where the defend - ant 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 dam - ages 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 proceedings involving debt col - lection, enforcement of judgments or investiga - tion of financial crimes, when there is suspicion of dissipation of assets. In Brazil, judges have access to electronic systems whereby they can instantly obtain the tax returns of a debtor and order financial institutions to provide any rele - vant bank statements. INFOJUD is a system used in Brazil to obtain tax- related information from government databases. It is primarily utilised by judicial authorities in civil and criminal proceedings to access tax records and financial information related to individuals and entities involved in legal disputes. Information Available From Public Sources In Brazil, a wide range of public sources can pro - vide information about the defendant’s assets, including the following, among others:
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