US government labels Brazil’s 2 biggest drug gangs as foreign terrorist organizations

SAO PAULO (AP) — The U.S. State Department announced on Thursday that it will designate Brazil’s two biggest criminal groups as foreign terrorist organizations early next month, a move the South American nation’s government has said it will interpret as undue interference in its politics.

U.S. Secretary of State Marco Rubio said in a statement that the First Command of the Capital, or PCC, and the Red Command, or CV, will be considered foreign terrorist organizations as of June 5. Until then, they will be named as specially designated global terrorists, which hampers their ability to make financial transactions as they are regarded as a threat to U.S. citizens.

Rubio’s announcement comes 24 hours after a visit by Sen. Flávio Bolsonaro, a presidential hopeful and son of former President Jair Bolsonaro, who has advocated for the move. The senator’s bid to face President Luiz Inácio Lula da Silva in October’s election is at risk after he admitted receiving money from a disgraced banker.

Lula, who the Bolsonaros accuse of not fighting organized crime, has repeatedly said he would interpret a designation of the two criminal groups as terrorist organizations as interference to favor his electoral rival. He has yet to comment on Thursday’s announcement.

The PCC and the CV likely have more than 50,000 members combined, according to experts, who also say most of their connections are in Europe rather than in North America. Most of PCC’s operations are centered in metropolis Sao Paulo, while the CV is based in Rio de Janeiro. They have reach throughout South America.

Latin America strategy

Designating criminal cartels in Latin America as foreign terrorist organizations is a strategy the Trump’s administration has used as it turns to military activity and other steps to combat drug trafficking in the Western Hemisphere, notably carrying out a campaign of deadly boat strikes against those it calls “narcoterrorists” in the Caribbean Sea and the eastern Pacific Ocean.

“CV and PCC are two of the most violent criminal organizations in Brazil. Together, they command thousands of members and have orchestrated brutal attacks against Brazilian police officers, public officials, and civilians,” Rubio said. “Their influence and illicit networks extend far beyond Brazil’s borders, across our region and into our country.”

“Today’s action taken by the State Department further demonstrates the Trump Administration’s unwavering commitment to dismantling cartels and criminal organizations in our region and ensuring the safety of the American people,” he added.

Sen. Bolsonaro, who briefly met Trump before his longer conversation with Rubio on Wednesday, said his visit to the Washington this week had produced more results for Brazil’s public security than in Lula’s three administrations. The incumbent president also governed in two terms between 2003-2010.

“Lula was on his knees to Trump to lobby for CV and PCC, and I was there to work so they can be treated as terrorists, which is what they are,” Sen. Bolsonaro said.

Brazil reaction

A Brazilian government staffer told The Associated Press there was no previous notice from the Trump administration that the move would take place on Thursday. The source spoke under condition of anonymity for lack of authorization to speak to journalists about the decision.

Lula, who is seeking reelection and is trying to boost his anti-crime credentials, has openly opposed labeling criminals as terrorists, while Bolsonaro’s supporters in Congress have publicly urged Trump to hit harder on the gangs.

Earlier Thursday, Brazilian prosecutors launched a mega-operation to dismantle fraud, money laundering and tax evasion, in the latest phase of an investigation targeting criminal gangs like the PCC and CV.

Lula’s special adviser for foreign affairs and former foreign minister Celso Amorim was the first to publicly comment on Rubio’s announcement.

“Public security is a key topic for social economic development. Organized crime is an evil that must be fought. International cooperation is welcome, especially in matters of money laundering and arms trade. (But) pretext for intervention is unacceptable,” Amorim said.

Public security will likely be a wedge issue in Brazil’s presidential elections, when Sen. Bolsonaro faces off against Lula. The 71-year-old Jair Bolsonaro cannot run as he is serving his 27-year prison sentence for leading a coup attempt.

Experts have said neither Jair Bolsonaro nor Lula was very successful in fighting the two criminal groups, although Brazil’s federal police and prosecutors have conducted several raids against them in recent years. Authorities scored a major win against the PCC in August by dismantling part of its money laundering network that included gas stations, perfume shops and even a financial services company based in one of Sao Paulo’s main arteries.

Brazil’s federal police said then that their operation, known as Hidden Carbon, found companies linked to the PCC laundering at least 6 billion reals ($1.1 billion) in recent years.

Political analyst Thomas Traumann says Rubio’s move is about “the Trump administration trying to meddle in the election after a request by Flávio Bolsonaro during his trip to Washington.”

“Flávio Bolsonaro’s campaign was hit by his problematic businesses with a corrupted banker, he came to the Trump administration to ask for some help and he got this one,” Traumann said. “Lula’s best moment in the polls was after Trump imposed tariffs against Brazil and he revived a narrative on national sovereignty. It is likely he will do it again.”

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Mauricio Savarese, The Associated Press