{"id":32379,"date":"2026-05-29T10:48:47","date_gmt":"2026-05-29T13:48:47","guid":{"rendered":"https:\/\/lefosse.com\/?p=32379"},"modified":"2026-05-29T10:48:50","modified_gmt":"2026-05-29T13:48:50","slug":"designation-of-comando-vermelho-cv-and-primeiro-comando-da-capital-pcc-as-foreign-terrorist-organizations-ftos","status":"publish","type":"post","link":"https:\/\/lefosse.com\/en\/news\/alerts\/designation-of-comando-vermelho-cv-and-primeiro-comando-da-capital-pcc-as-foreign-terrorist-organizations-ftos\/","title":{"rendered":"Designation of Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Foreign Terrorist Organizations (FTOs)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Yesterday, May 28, 2026, the U.S. Department of State, through Secretary of State Marco Rubio, announced the designation of the criminal organizations Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Specially Designated Global Terrorists (SDGTs) and formally stated its intention to also designate them as Foreign Terrorist Organizations (FTOs), effective June 5, 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The designation of the PCC and CV as terrorist organizations by the United States had been under consideration since 2025 and forms part of the broader U.S. effort to combat transnational crime, particularly in relation to Latin America. In recent years, U.S. authorities have pushed for a more stringent approach, arguing that these factions already operate with a scale and level of sophistication comparable to international terrorist organizations, with a direct impact on strategic consumer markets, including the United States.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The designation of both organizations as SDGTs took immediate effect, triggering financial restrictions and prohibitions on transactions involving U.S. persons and companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As of June 5, 2026, the broader legal framework applicable to FTOs will come into effect, including sanctions, more stringent immigration restrictions, and the criminalization of so-called \u201cmaterial support\u201d under 18 U.S.C. \u00a7 2339B. This concept is interpreted broadly and covers not only direct financing, but also ordinary commercial transactions, the provision of goods, the rendering of services, transportation, or any form of assistance, including indirect assistance through third parties or supply chains. This is a particularly strict regime, as it does not require a connection to a specific terrorist act; the provision of support to the listed entity is sufficient. As a result, the risk of liability increases significantly for companies and financial institutions that do not have robust controls and mechanisms in place to identify ultimate beneficial owners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, the designation of the PCC and CV pursuant to Executive Order 13224 will have immediate and far-reaching effects, including: (i) the blocking of all property and interests in property of the designated entities that are located in the United States or under the control of U.S. persons; (ii) a prohibition on any transaction or dealing involving U.S. persons, including the making or receiving of funds, goods, or services for the benefit of these entities; and (iii) a prohibition on acts intended to evade or circumvent such restrictions, including through alleged conspiracies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Violations of these restrictions may result in civil and criminal penalties imposed in the United States, not only on members of the organizations themselves, but also on third parties that engage with them, including substantial fines and imprisonment. Beyond these direct effects, the designation will also have significant systemic impacts: it will intensify scrutiny by global financial institutions, prompt governments and private actors to strengthen due diligence, discourage any type of commercial relationship where potential risks are identified, and contribute to the financial isolation of these organizations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From a compliance and international trade perspective, the designation has significant legal, reputational, and financial implications. In this new context, third-party due diligence procedures based on superficial reputational checks are insufficient considering the potential for liability, including through indirect channels, under the counterterrorism regime. It is therefore essential to strengthen internal governance and control mechanisms through the review of risk matrixes, the adoption of robust Know Your Customer (KYC) and Know Your Supplier (KYS) processes, detailed third-party due diligence procedures, analysis of corporate structures with the identification of ultimate beneficial owners, as well as ongoing screening and monitoring against restricted party lists and transaction monitoring. More than that, companies are expected to be able to demonstrate, in a documented and auditable manner, the implementation of reasonable, proportionate, and effective controls capable of mitigating the risk that their operations, funds, or services may be used, even inadvertently, for the benefit of organizations designated as terrorist groups.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Companies operating in sectors with a higher degree of intermediation, intensive use of third parties, or significant operational complexity tend to be more exposed and, consequently, subject to higher levels of regulatory and reputational scrutiny. These include, for example, financial institutions, logistics and transportation, agribusiness, infrastructure, mining, and other sectors that face increased risk due to their reliance on extensive networks of suppliers, distributors, and business partners, often with limited visibility into ultimate beneficial owners. In this scenario, deficiencies in due diligence and monitoring controls may lead to investigations, the imposition of sanctions, trade restrictions, and deterioration of trust among investors, lenders, and strategic counterparties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In summary, for the corporate environment, the main consequence is the heightened risk associated with third parties, business partners, and opaque corporate structures. The message is clear: preventing links with networks connected to the CV and the PCC is no longer only a matter of integrity and anti-money laundering compliance, but also a requirement under stringent international sanctions regimes that may jeopardize operational continuity.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">Our <a href=\"https:\/\/lefosse.com\/en\/practice\/compliance-and-investigations\/\" type=\"link\" id=\"https:\/\/lefosse.com\/en\/practice\/compliance-and-investigations\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Compliance &amp; Investigations<\/mark><\/a> and <a href=\"https:\/\/lefosse.com\/en\/practice\/international-trade\/\" type=\"link\" id=\"https:\/\/lefosse.com\/en\/practice\/international-trade\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">International Trade<\/mark><\/a> teams have extensive experience in this area, and I remain available to address any questions that may arise in this new risk environment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday, May 28, 2026, the U.S. Department of State, through Secretary of State Marco Rubio, announced the designation of the criminal organizations Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Specially Designated Global Terrorists (SDGTs) and formally stated its intention to also designate them as Foreign Terrorist Organizations (FTOs), effective June 5, 2026. [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":29399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[215],"tags":[494,502,544,506,584,788],"class_list":["post-32379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alerts","tag-adriana-dantas","tag-audrey-otsuki","tag-carolina-fucchi","tag-compliance-and-investigations","tag-international-trade","tag-tomas-mesquita-2"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Designation of Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Foreign Terrorist Organizations (FTOs) - Lefosse<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lefosse.com\/en\/news\/alerts\/designation-of-comando-vermelho-cv-and-primeiro-comando-da-capital-pcc-as-foreign-terrorist-organizations-ftos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Designation of Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Foreign Terrorist Organizations (FTOs) - Lefosse\" \/>\n<meta property=\"og:description\" content=\"Yesterday, May 28, 2026, the U.S. Department of State, through Secretary of State Marco Rubio, announced the designation of the criminal organizations Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Specially Designated Global Terrorists (SDGTs) and formally stated its intention to also designate them as Foreign Terrorist Organizations (FTOs), effective June 5, 2026. 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