US designates Brazil's PCC and Comando Vermelho as terrorist groups

On May 5, the United States government officially classified Brazil’s two major criminal factions, the Primeiro Comando da Capital (PCC) and the Comando Vermelho (CV), as foreign terrorist organizations. The designation, signed by Secretary of State Marco Rubio, authorises the freezing of assets under U.S. jurisdiction, expands financial sanctions and criminalises any material support to the groups.

Brazil’s government has condemned the move, arguing it blurs the line between organized crime and terrorism, threatens national sovereignty and could damage the country’s economy, tourism, foreign investment and trade. Experts warn the classification may raise compliance costs for banks, fintechs, logistics firms and other companies linked to the informal economy, and could inadvertently strengthen the factions by pushing them into more sophisticated financial networks. The decision adds a new layer of diplomatic tension between Washington and Brasília, with Brazil considering reciprocal trade measures under its reciprocity law.