The financial consequences of criminal conviction in Brazil go well beyond imprisonment and sentencing. A final judgment can make the duty to compensate the victim certain and order the forfeiture of instruments, product, and proceeds of crime — including equivalent-value forfeiture when the proceeds cannot be found. In specific scenarios, courts may also apply extended confiscation. All of these effects directly impact the defendant’s assets after the case becomes final.
Financial consequences of criminal conviction in Brazil: victim restitution
Crime can cause economic and moral damage, which gives rise to a claim for compensation. Upon conviction, Brazilian law dispenses with a new civil trial on the merits: the duty to compensate becomes certain by force of the criminal judgment (Penal Code, art. 91, I). In addition, the court may fix a minimum indemnity, provided that the prosecution expressly requests it in the indictment (Code of Criminal Procedure, art. 387, IV). The STJ held that the trial judge cannot set this amount ex officio; the request must appear in the charging document.
Damage to the public treasury. When the injured party is a public entity, civil recovery should be pursued by the Public Advocacy offices that represent that entity (AGU/State and Municipal Procuradorias), in cooperation with prosecutors when appropriate. The STF held that public entities have concurrent standing to file actions for improbity and to enter into settlements, which dispenses with any claim of prosecutorial exclusivity.
Financial consequences of criminal conviction in Brazil: forfeiture and equivalent value
Beyond restitution, conviction triggers forfeiture (Penal Code, art. 91, II). It encompasses:
- instruments of the crime whose manufacture/possession/use is unlawful; and
- the product of the crime and any asset or value constituting its proceeds.
Priority of destination matters: the victim’s right to compensation comes first; any remaining balance may then revert to the Federal Union. The purpose is to strip the economic advantage from the offense and deter repetition.
Equivalent-value forfeiture (art. 91, §1). If the product/proceeds cannot be found or are located abroad, the court may forfeit assets or values of equivalent worth from the convicted person. In these cases, lawful assets can be reached to neutralize the unlawful gain — always as an effect of conviction and without prejudice to bona fide third parties.
Avoid double recovery. When quantifying damage to be compensated and proceeds to be forfeited, it is essential to avoid overlap that exceeds the actual loss. Principles against unjust enrichment guide that calibration under Brazilian civil law.
Extended confiscation: when the numbers don’t add up
The “Anti-Crime Package” (Law 13.964/2019) introduced extended confiscation (Penal Code, art. 91-A): if the offense carries a maximum sentence greater than 6 years, the court may declare the loss — as product or proceeds of crime — of assets that exceed what is compatible with the defendant’s lawful income. This is an effect of conviction, aimed at eliminating unjustified enrichment linked to crime, while preserving the rights of bona fide third parties. The statute details what counts as the defendant’s assets (direct or indirect holdings; assets acquired before or after the offense).
Conclusion
From a defense standpoint, understanding the financial consequences of criminal conviction in Brazil is crucial to assess risk, document lawful asset origins, and prevent overreach — especially in cases involving the public treasuryor extended confiscation. The bottom line remains: crime doesn’t pay; sound criminal procedure in Brazil ensures effective victim compensation, removal of ill-gotten gains, and protection of lawful assets.
