Brazil receives over $28 million from Switzerland recovered from financial crimes

Brasilia, June 06, 2024 – Switzerland transferred BRL 155.4 million (approximately USD 28.93 million) to Brazil recovered through prosecution of transnational crimes such as money laundering, corruption and public document forgery involving both countries. Brazilian institutions contributed to the criminal prosecutions in Switzerland through formal cooperation procedures during the investigation stages. A partnership between the Federal Public Ministry (MPF), the Ministry of Justice and Public Security (MJSP), and the Solicitor General's Office (AGU) facilitated assistance in these cases and determined the allocation of the funds returned to Brazil.

The international transfer of assets recovered during criminal prosecution is allowed by Swiss federal law. This is the first time Switzerland has allocated funds to Brazil under this legislation, which determines that part of the funds recovered by Swiss authorities is to be allocated to countries that contributed decisively to successful criminal prosecution. This is not repatriated money requested by Brazil, but rather a form of legal compensation provided to countries that provide legal assistance in investigations.

The full amount will be transferred to Brazil’s National Penitentiary Fund (FUNPEN), which provides for the development and expansion of federal prison infrastructure, and for the humane treatment of inmates. This amount will expand the fund’s 2023 budget by 40%, to about BRL 361.47 million (approximately USD 67.29 million).

The funds were sent to Brazil under the asset-sharing agreements outlined in Swiss law and endorsed by Swiss authorities in cooperation with three Brazilian entities involved in the case. These included the International Cooperation Secretariat of the Office of the Attorney General (SCI/PGR), the Department of Asset Recovery and International Legal Cooperation (DRCI) of the Ministry of Justice and Public Security (MJSP) and the National Attorney General's Office for International Affairs of the Solicitor General's Office (AGU).

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The funds allocated to Brazil represent half of the total amount recovered from seven cases investigated and prosecuted by Swiss authorities, involving crimes such as corruption, money laundering and public document forgery. These investigations spanned over ten years, with Brazil's involvement from 2016 to 2020, in response to international requests for legal cooperation.

According to Secretary of International Cooperation (SCI) Anamara Osório, the Public Prosecutor's Office — through the SCI/PGR — assisted in executing requests and monitoring procedures in Brazilian territory to address the crimes. This assistance included facilitating witness testimonies, collecting evidence and documents, identifying suspicious financial transactions and tracing illegal funds. "The assistance provided by Brazil was deemed crucial by Swiss authorities to ensure the confiscation of assets," emphasized Osório.

Following the freezing of accounts in Switzerland, the individuals involved were prosecuted and tried for their crimes within the Swiss justice system. "The coordinated efforts of Brazilian institutions were key in managing these cases, marking a significant step in international cooperation and the battle against transnational financial crimes," said Carolina Yumi, Director of the Department of Asset Recovery and International Legal Cooperation (DRCI) at the Ministry of Justice and Public Security.

According to Boni de Moraes Soares, the National Attorney General for International Affairs, this case underscores the crucial need for fostering institutional cooperation within Brazil to facilitate the international recovery of assets. Soares acknowledged, "As significant as the amounts returned to Brazil may be, this cooperation shows that when authorities from the Executive Branch and the Justice System work together, we can significantly improve efforts to fight transnational corruption and reclaim assets taken from public funds."

Provisions within the asset-sharing agreements prohibit the disclosure of the names of individuals involved, as well as the specifics of the crimes committed.