Trump administration labels two of Brazil’s largest criminal networks — effective June 5 — as Lula urges diplomatic reversal
WASHINGTON/BRASÍLIA — The Trump administration announced Thursday it will designate Brazil’s two most powerful criminal organizations — Primeiro Comando da Capital (PCC) and Comando Vermelho — as Foreign Terrorist Organizations, effective June 5, drawing sharp rebuke from President Luiz Inácio Lula da Silva and intensifying concerns over U.S. military overreach in Latin America.
Secretary of State Marco Rubio said the designations, which build on “Specially Designated Global Terrorist” status already applied in recent weeks, were necessary to protect American citizens and disrupt the groups’ financial networks.
The PCC, founded in São Paulo’s prison system and now operating across South America, and Comando Vermelho, rooted in Rio de Janeiro’s favelas, together command an estimated 70 percent of Brazil’s cocaine export infrastructure and generate an estimated $20 billion in annual revenue, much of it flowing through U.S. financial systems, according to DEA estimates.
Lula held a phone call with Trump earlier this week in an attempt to dissuade the designations, according to Brazilian government sources. The concern in Brasília is that the terrorist label could expose banks, businesses, and even extortion victims to secondary sanctions for any contact with the groups — effectively freezing them out of the formal financial system.
The timing is politically charged. Brazil is in the midst of a highly contentious presidential campaign. Flavio Bolsonaro — son of former President Jair Bolsonaro — is running on a law-and-order platform and has publicly backed closer ties with the Trump administration. His opponent in the race is widely expected to decry the designations as foreign interference in Brazil’s sovereignty.
The move is the latest step in what analysts have dubbed the “Donroe Doctrine” — Trump’s modern reboot of the 19th-century Monroe Doctrine, framing criminal networks as national security threats to justify broader U.S. presence across the hemisphere. Since returning to office, the administration has also pursued terror designations for Mexican cartels, Colombian micro-trafficking networks, and Haitian gang federations.
Critics warn the designations risk destabilizing Brazil’s financial sector and could complicate anti-crime cooperation between Brasília and Washington. A Brazilian banking association declined to comment on whether it was reviewing exposure to the designated groups.
The State Department said full asset freezes under the FTO designation take effect June 5. U.S. officials said they have shared intelligence on both organizations with Brazilian federal police and are seeking coordinated action against shared targets.