The U.S. government has designated the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV) as terrorist organizations, effective Friday, June 5, 2026 [1].

This designation marks a significant escalation in the U.S. approach to South American organized crime. By classifying these groups as terrorists rather than mere criminal enterprises, the U.S. government gains broader legal tools to freeze assets, and disrupt the financial networks of the two largest criminal factions in Brazil [3, 4].

The move by the administration of President Donald Trump aims to combat organized crime and apply direct pressure on Brazil to intensify its own crackdown on these groups [4, 5]. The PCC and CV operate extensive networks that facilitate drug trafficking and violent crime across borders.

Democratic lawmakers have expressed concerns regarding the diplomatic fallout of the decision. Some representatives said that designating these groups as terrorist organizations could negatively affect the bilateral relationship between the U.S. and Brazil [2].

The decision follows a period of increased tension regarding how Brazil manages its internal security threats. While the U.S. announced the classification on June 5, 2026 [1], reports indicate a lack of consensus between the two nations. President Lula said he did not discuss the classification with Trump [6].

Under the new designation, the U.S. can now apply sanctions and legal penalties to any individual or entity providing material support to the two organizations [1]. This shift is intended to dismantle the operational capacity of the factions by targeting their international logistics, and funding sources [5].

The U.S. government has designated the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV) as terrorist organizations

The transition from a 'criminal' to a 'terrorist' label allows the U.S. to utilize the USA PATRIOT Act and other counter-terrorism statutes. This means the U.S. Treasury can more aggressively target the money laundering pipelines used by the PCC and CV, potentially isolating these groups from the global financial system and forcing the Brazilian government to align its security policies with U.S. strategic interests.