PCC and CV terrorists could affect tourism in Brazil, says expert

The classification of the PCC (Primeiro Comando da Capital) and Comando Vermelho as terrorist organizations by the United States could generate a series of economic and reputational consequences for Brazil.

In an interview with CNN Money, Jorge Lasmar, a specialist in International Relations, analyzed the possible impacts of this decision on different sectors of the Brazilian economy.

According to Lasmar, the designation implies two levels of effects: the classification itself as terrorism and the sanctions regime that is now adopted.

"Americans, American companies, are prohibited from trading with sanctioned entities. This could restrict any trade or action with Brazil," he said.

In addition, American companies will demand greater rigor in identifying their Brazilian business partners, increasing compliance and risk costs.

Brazilian companies must also reinforce their internal processes to demonstrate that they do not finance or facilitate money laundering linked to the PCC or Comando Vermelho. If any Brazilian company is identified as a material supporter of these organizations, it may suffer administrative or even criminal sanctions in the United States, including the so-called secondary sanctions regime.

In the long term, Lasmar warned that the increase in insurance costs for international companies that transact with Brazil could generate an inflationary effect and, ultimately, impact interest rates.

"The price of insurance can become very expensive and even generate an inflationary effect and, ultimately, it can impact the issue of interest", he said.

The expert also highlighted the country's reputational risk.

"The message that is being sent internationally now is that I have two terrorist groups active in Brazil and that they are dominating a considerable part of the Brazilian territory. This could even impact the tourism sector", said Lasmar.

To illustrate the possible developments, Lasmar cited the case of Mexico, which went through a similar situation. In the neighboring country, there was an increase in legal actions against Mexican companies in the United States, in addition to four banks that were almost sanctioned and practically removed from the American financial system due to alleged links with organized crime.

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The designation has also been used as an argument for extraditions and denial of visas to citizens of these countries.

Another point raised by Lasmar concerns international cooperation in the fight against crime. With the new classification, the fight against these groups is no longer dealt with in the police sphere and passes to the area of defense and security of the United States, falling under the competence of the CIA and being classified as confidential matter.

This could affect the flow of information between the two countries in cases involving the presence of the PCC on American territory.

Faced with this scenario, Lasmar pointed to diplomatic dialogue as the main path to be followed.

"Certainly, a diplomatic exit is one way", he said.

However, the expert highlighted that the Brazilian government will also need to demonstrate that it has adopted "clear and effective measures to combat crime", remembering that the PCC has already been sanctioned by the United States since 2021.

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Source: CNN