STF forms majority against presumption of ‘good faith’ in the gold market – 04/29/2023 – Market

The STF (Federal Supreme Court) formed a majority in a vote to maintain the suspension of the legal provision that instituted the so-called “presumption of good faith” in the gold trade.

This instrument allows gold to be traded in Brazil only based on information from sellers about the origin of the product.

Five ministers followed the individual decision handed down by Gilmar Mendes on April 4, which suspended the application of the so-called good faith to attest to the legality of gold.

By suspending this instrument, which is provided for in a 2013 law, the minister stated that “the legislative diploma in question made private monitoring unfeasible by removing the responsibility of the buyer, which encouraged the illegal market, leading to the growth of environmental degradation and increased violence in municipalities where mining is illegal”.

The minister also determined the adoption, within 90 days, by the Executive Power of the Union, of a new normative framework for the inspection of the gold trade.

The ministers Edson Fachin, Cármen Lúcia, Dias Toffoli, Rosa Weber and Alexandre de Moraes accompanied the rapporteur’s vote. If no minister submits a request for a view or appointment, the analysis of the process ends on May 2.