US designates PCC and CV as terrorist organisations, with potential implications for companies in Brazil
The United States government’s decision to designate the Primeiro Comando da Capital (PCC) and the Comando Vermelho (CV) as Foreign Terrorist Organizations could have implications extending beyond the fight against organised crime. Although the measure does not directly affect Brazil’s fixed-odds betting regulations, some observers believe it is likely to increase pressure on companies operating in sectors considered more vulnerable to money laundering, including the gaming and online betting industry.
The announcement, issued in June 2026, places both criminal organisations under a sanctions regime administered by the Office of Foreign Assets Control (OFAC), an agency of the US Department of the Treasury. As a result, companies that maintain commercial or financial relationships with individuals or organisations linked to the groups may face restrictions on access to the US financial system, even if they are headquartered outside the United States.
For Brazil’s betting market, which has operated under a regulated framework since 2025, the decision backs a trend evident since regulation came into force: strengthening anti-money laundering and counter-terrorism financing measures.
What prompted the US decision
In May 2026, the United States government announced the inclusion of the Primeiro Comando da Capital (PCC) and the Comando Vermelho (CV) on the lists of Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs). The measure took effect on 5 June and forms part of the US administration’s strategy of using counterterrorism legislation to combat transnational criminal organisations.
According to the US Department of State, the decision was prompted by the international expansion of the Brazilian criminal groups, particularly their involvement in drug trafficking networks that extend to other countries, including the United States. The US government also argued that the organisations have expanded their presence in the formal economy through shell companies and schemes used to move and conceal proceeds from illicit activities.
With the new designation, the PCC and CV became subject to the same sanctions regime applied to international terrorist organisations. In practice, any assets linked to the groups that fall under US jurisdiction may be frozen, while individuals and companies are prohibited from conducting any transactions with persons or entities associated with the organisations.
An additional significant consequence is the sanctions’ international reach. Since a large share of global financial transactions pass through the US banking system or are settled in US dollars, companies in many countries may face restrictions if they maintain commercial relationships deemed significant with individuals or organisations linked to the groups. This has prompted sectors with greater exposure to money laundering risks, such as financial services and betting, to strengthen their compliance programmes even in the absence of immediate changes to Brazilian legislation.
Compliance expected to become even more important
Licensed operators in Brazil are already required to implement Know Your Customer (KYC) policies, monitor financial transactions, spot suspicious activity and report relevant operations to the competent authorities.
With the new US designation of the Brazilian criminal groups, these measures could become even more stringent. The focus is no longer limited to compliance with Brazilian regulations but equally extends to risks associated with the international financial system. This may lead to enhanced identity verification procedures, periodic customer database reviews, screening against international sanctions lists and continuous monitoring of higher-risk profiles.
Although these practices are already standard practice for regulated operators, expectations are that the criteria used to identify suspicious transactions will become more sophisticated.
The effects are also expected to extend beyond betting operators. Banks, fintech companies, payment institutions and businesses responsible for processing financial transactions are also likely to strengthen their compliance programmes to avoid exposure to international sanctions.
As many global financial transactions are connected to the US banking system, institutions serving Brazilian operators may require additional controls before authorising certain transactions. This could result in stricter due diligence procedures, periodic reviews of business partners and increased documentation requirements for companies operating in the sector.
Combating money laundering
The US designation of the PCC and CV does not change Brazilian legislation or create new obligations for betting operators in the country. Even so, the decision reflects a shift in how the fight against organised crime is being conducted internationally.
The focus is no longer limited to criminal enforcement but also targets the financial flows that may sustain illicit organisations. For companies operating in sectors considered more sensitive, such as the betting industry, this means operating in an environment of increasingly integrated oversight aligned with global compliance practices.
In the coming months, the most significant impact is unlikely to be changes to Brazilian regulations, but rather the evolution of companies’ internal processes, the criteria adopted by banks and financial institutions, and the level of compliance expected by international business partners.
This article was first published on the Portuguese SiGMA News page on 8 July 2026.
In Mexico City, from September 1 to 3, 2026, North America meets Latin America. SiGMA North America welcomes 4,000 attendees for three days of business, insights, and inspiration for startups. Real insights. Real business. Book your spot.
