US designates Brazil's PCC and CV as foreign terrorist organizations

Effective June 5, 2026, the United States designated Brazil's criminal groups Primeiro Comando da Capital (PCC) and Comando Vermelho (CV) as Foreign Terrorist Organizations (FTO) following their earlier classification as Specially Designated Global Terrorists. The designations trigger asset freezes, prohibit U.S. persons and institutions from providing material support, ban entry of group members, and require U.S. financial institutions to report related transactions.

Brazil’s government says the measures have no immediate impact on the Brazilian economy but warns they could open the door to extraterritorial U.S. actions, including potential sanctions on the country’s payment system PIX. U.S. officials, including Secretary of State Marco Rubio and State Department spokesperson Amanda Roberson, stated that President Donald Trump aims to eliminate the gangs. The move also raises concerns about a broader U.S. effort to assert financial dominance in Latin America, with Visa and Mastercard having previously challenged PIX.

Brazil’s Supreme Court has ruled U.S. sanctions do not apply on Brazilian territory, and the Brazilian administration argues the designations will not affect domestic legal frameworks. Nevertheless, the decision adds pressure on Brazil’s financial sector and may influence future diplomatic and trade negotiations between the two nations.