The US just put Brazil’s two most powerful criminal organizations on the same list as groups like ISIS and al-Qaeda. That’s not a rhetorical flourish. It’s a legal designation with teeth.

On May 28, the State Department classified Primeiro Comando da Capital (PCC) and Comando Vermelho (CV) as Specially Designated Global Terrorists, effective immediately. A second classification as Foreign Terrorist Organizations follows on June 5. For any business, bank, or crypto platform touching Brazilian markets, the compliance landscape just got significantly more complicated.

What happened, and why now

Secretary of State Marco Rubio spearheaded the designations as part of a broader Trump administration campaign targeting over 10 criminal organizations across Latin America. The stated goal: disrupting the illicit revenue streams that fund these groups and, according to Washington, extend their violent operations into the US.

The political backstory matters here. The designations came after lobbying by Brazilian opposition figures, including a meeting between President Trump and Senator Flávio Bolsonaro.