Asset Tracing in International Disputes — Focus on Latin America and Brazil
Linklaters' Sao Paulo office had the pleasure of hosting alongside G3 a valuable discussion on asset tracing in cross-border disputes, with a spotlight on Brazil and the wider Latin American landscape. Here are some highlights that may be helpful for companies, in-house counsel, and legal practitioners:
Asset tracing adds value at every stage of a dispute
Asset tracing plays a vital role before, during, and after litigation or arbitration. Early intelligence gathering helps assess whether a potential claim is worthwhile and reveals risks of assets being moved or concealed. During proceedings, asset tracing helps identify complex ownership structures and supports legal strategies such as freezing orders to preserve assets. After a favorable court or arbitral decision, tracing still remains essential to enable the enforcement and recovery of assets internationally.
Initial steps for evidence preservation are crucial
Speed and coordination matter. Early actions include preserving documents and digital records, engaging asset tracing experts and seeking urgent court orders (such as injunctions or freezing orders). Sending warning or preservation letters to banks, intermediaries, or anyone holding the relevant assets, for instance, puts custodians on notice of the investigations helping to prevent assets from disappearing while formalizing court measures.
Asset tracing drives smarter legal strategies and negotiations
Insights from tracing not only reveal where assets are hidden but also help determine the right parties and jurisdictions for legal action. Solid tracing evidence also provides leverage in settlement negotiations. In a dispute, if the respondent is faced with solid proof that assets had been transferred to a safe haven jurisdiction, for instance, the respondent may prefer settlement over public scrutiny.
High-quality evidence underpins successful outcomes
Asset tracing companies play a pivotal role by preparing clear, well-documented reports—including official documents and expert witness statements—that meet strict international legal standards. Maintaining rigorous handling and referencing of all evidence is necessary for both enforcement and settlement. This ensures that evidence stands up in court or before arbitral tribunals.
Effective collaboration is key
A successful asset tracing operation depends on close teamwork between lawyers and investigators. The coordination process is based on clear communication, a shared understanding of objectives and legal limits, and the flexibility to adapt as new facts are uncovered. This collaborative approach is key for building a strong case and effectively protecting clients' interests.
In summary, asset tracing is not just about following the money—it is about empowering clients to recover what they are owed and supporting legal strategies with concrete evidence. As cross-border disputes continue to grow, especially in Brazil, being proactive and strategic in tracing assets is more important than ever.
About Linklaters’ Latin America practice
We are proud to offer a dedicated, strong Latin America practice with multilingual, dual-qualified on-the-ground teams in São Paulo, New York, Washington, D.C. and Mexico. We were one of the first international firms to open an office in Brazil back in 1997. We have advised the region’s most prominent public and private companies, strategic investors, sponsors, financial institutions, and sovereign entities on their most complex domestic and cross-border matters for over 40 years. We continue to be recognized as one of the top international firms in Latin America and named among “Highly Recommended” Firms in the Latin Lawyer 250 Guide for several consecutive years.
About G3
G3 is a global advisory company that helps clients enable their opportunities and manage key risks. Headquartered in London with offices in the United States, the Middle East and Asia, G3 leverages an on-the-ground network that has operated in almost every country around the world for over 20 years. The diverse team is drawn from government, finance, law, consulting, and law enforcement. Together, their wide range of skills makes them experts in identifying information and answering questions that others cannot. G3 provides valuable intelligence on policy and regulatory changes in LatAm, and assesses commercial risks related to investments. They conduct over 1000 projects every year for clients across the globe with dedicated teams for each region.
