The U.S. State Department has designated Brazil's two largest criminal organizations, the First Capital Command (PCC) and the Red Command (CV), as foreign terrorist organizations and Specially Designated Global Terrorists. U.S. Secretary of State Marco Rubio announced the move on Thursday, stating the groups operate violent transnational networks that threaten national security. The designation, which goes into effect on June 5, is part of a broader Trump administration strategy to disrupt the revenue streams of narco-terrorists across Latin America.
President Luiz Inácio Lula da Silva has strongly criticized the decision, calling it unilateral, confused, and counterproductive. The Brazilian government stated that the move threatens national sovereignty and could undermine international cooperation between police forces. Lula warned that such designations might pave the way for U.S. military action in Brazil or lead to sanctions against banks that unknowingly do business with gang members. In contrast, Senator Flávio Bolsonaro, who is preparing for a run in the October presidential elections, confirmed he lobbied President Donald Trump to add the gangs to the list. Public security is expected to be a key issue in the election, as former President Jair Bolsonaro is ineligible to run while serving a 27-year prison sentence.
Parallel to this diplomatic tension, Brazilian prosecutors have launched a mega-operation to dismantle money laundering, fraud, and tax evasion schemes. The Federal Revenue Service recently discovered six fintech companies acting as parallel banks for criminal groups, processing 26 billion reais between 2022 and 2025. This follows a previous operation, known as Hidden Carbon, which dismantled a PCC network involving gas stations and perfume shops that laundered 6 billion reais. Public safety experts argue that targeting these financial operations is more effective than deadly police raids in urban communities, noting a previous operation in Rio de Janeiro's favelas that left more than 120 people dead.