Economic sanctions follow US classification of terrorism; understand

The classification of foreign terrorist organizations by the United States also follows economic sanctions applied by the US Treasury.

The designation makes it unlawful for a person in or subject to its jurisdiction to "knowingly" provide material support or resources to a designated foreign organization.

Among the various items listed under "material support or resources," U.S. law includes money, securities, and financial services.

In addition, any financial institution operating in the US that becomes aware of funds linked to a foreign terrorist organization in its possession must take control of those funds and report them to the US Treasury Department's Office of Foreign Assets Control (OFAC).

The Treasury Secretary may also require the blocking of transactions involving these assets.

The United States Department of State announced this Thursday (28) that it has classified the Red Command and the PCC (First Capital Command) as "Foreign Terrorist Organizations" and "Specially Designated Global Terrorists".

The classification of a foreign group as an FTO (Foreign Terrorist Organization) is a prerogative of the U.S. Department of State.

The second, SDGT (Specially Designated Global Terrorists), is the prerogative of both the State Department and the Treasury Department.

Unlike the FTO, in addition to terrorist groups, this designation can also affect individuals and entities.

Groups or individuals may also be designated that are considered "controlled by" a terrorist group or that have "assisted, sponsored or provided financial, material or technological support" or "services of another nature".

Analysis: Brazil's financial system could be affected by terrorist classification | CNN PRIME TIME

"Foreign financial institutions may also be subject to correspondent banking and payment account sanctions if they knowingly facilitate significant transactions for or on behalf of" Specially Designated Global Terrorists, it concludes.

In this way, the Donald Trump government's decision to consider the PCC and the CV as terrorist groups should have an impact on the Brazilian financial market, said, in March, Lincoln Gakiya, a prosecutor considered one of the main names working against organized crime in Brazil.

"If the US classifies the PCC as a terrorist organization, they can say that all financial institutions that sold Reag funds or Banco Master securities will also be sanctioned", he exemplified, remembering that these two institutions are being investigated for allegedly serving as a vehicle for PCC resources.

With information from Léo Lopes and Tiago Tortella, from CNN Brasil

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Source: CNN