US Designates Brazil's PCC and CV as Terrorist Organizations, Heightening Compliance Risks

On May 28, 2026, the US Department of State designated Brazil's PCC and CV as Specially Designated Global Terrorists (SDGTs) and announced their Foreign Terrorist Organization (FTO) status effective June 5, 2026. This designation significantly increases legal and compliance risks for companies operating in Brazil and Latin America, particularly those with US connections. The FTO designation introduces severe implications under US law, including potential criminal liability for providing 'material support' to these organizations. Companies may face heightened scrutiny and enforcement actions, especially in sectors vulnerable to extortion and coercion. The PCC and CV have extensive influence over local economies, complicating operational decisions for businesses. This shift marks a significant escalation in US counterterrorism strategy targeting transnational criminal organizations. Firms are advised to reassess their risk profiles and compliance measures immediately.

Key Points: • US designated Brazil's PCC and CV as terrorist organizations, effective June 5, 2026. • Companies face increased legal risks under US counterterrorism laws for indirect interactions. • Immediate reassessment of compliance measures is recommended for firms operating in Brazil.