Understand how the US designation targets members of the PCC and CV and financial network

The United States decided to classify the Brazilian factions PCC (Primeiro Comando da Capital) and CV (Comando Vermelho) as terrorist organizations.

The announcement was made by the American Secretary of State, Marco Rubio, who wrote on social media: "Primeiro Comando da Capital and Comando Vermelho are two of the most violent criminal organizations in Brazil. Their reach extends throughout our region and our country."

To take this measure, which will come into force on June 5th, the Trump administration used two distinct and complementary forms of classification as its legal basis: Foreign Terrorist Organization (FTO) and Specially Designated Global Terrorists (SDGT).

In other words, starting next Friday (5), the PCC and the CV will be designated as both FTO and SDGT, joining a list of groups such as Hamas, Hezbollah, Al-Qaeda and the Sinaloa Cartel.

What is the difference between these two forms of classification, what are their objectives and impacts?

Designation "Terrorist Organization" criminalizes support for the CCP and CV
The classification of a foreign group as an FTO (Foreign Terrorist Organization) is a prerogative of the US State Department.

This legal instrument - provided for in Section 219 of the so-called "Immigration and Nationality Act" - was established by the American Congress in 1996.

The measure emerged in the context of the 1995 Oklahoma City attack - the deadliest terrorist act in the country until the Twin Towers, which generated national pressure to tighten anti-terrorism legislation.

For an organization to be classified as an FTO, the US Department of State must assess that the group meets three criteria:

- Be a foreign organization;
- Engage in "terrorist activity," "terrorism" or maintain the "ability and intent to engage in terrorist activity or terrorism";
- Threaten the safety of U.S. citizens or the "national defense, foreign relations, or economic interests of the United States."

After Rubio's announcement about the PCC and the CV, the American Congress must be notified and will have seven days to analyze the designation. If the deadline expires and parliamentarians do not act to block the measure, the classification will be published in the Federal Register (equivalent to the Brazilian Official Gazette).

Among the practical implications, the classification makes it a federal crime for a person in the United States to provide "material support or resources" to an FTO organization.

The law firm WilmerHale highlights that third parties can be the target of criminal investigations and prosecutions for providing support to FTOs with convictions that can reach life in prison in certain cases and fines in the range of US$1 million.

The designation also allows U.S. citizens injured by an act of terrorism to sue those who assist an FTO for damages.

In addition, members of groups classified as FTO who are foreign nationals are prohibited from entering the US and may be deported.

The designation also requires any U.S. financial institution that becomes aware of holding funds from an FTO to report to the Treasury Department. And the Treasury Secretary can demand the blocking of transactions involving these assets. The economic effects are complemented with the second terrorist classification.

"Global Terrorist" designation freezes CCP and CV assets in the US
The second classification announced by Rubio, SDGT (Specially Designated Global Terrorists), is a prerogative of both the State Department and the US Treasury Department.

It is based on decree 13224, which was signed by then President George W. Bush days after the attack on the Twin Towers on September 11, 2001.

Unlike the FTO, in addition to terrorist groups, this designation can also affect individuals and entities. Additionally, unlike the FTO, the SDGT designation eliminates the need for congressional review.

The requirements listed for the SDGT designation include the U.S. government assessing that the target has "committed or poses a risk of committing acts of terrorism that threaten the safety of U.S. citizens or U.S. national security, foreign policy, or economy."

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".

PCC and Red Command are classified as terrorist organizations by the USA | H TIME

In practice, as the State Department details, the SDGT designation provides that "all assets and interests in assets of designated individuals or entities that are in the United States, entering the United States, or in the possession or control of U.S. persons, are blocked."

The measure also prohibits "any transaction or negotiation" with people or groups affected by the designation - even outside U.S. jurisdiction.

"Non-U.S. persons who engage in prohibited transactions or dealings subject to U.S. jurisdiction with SDGTs may be subject to civil or criminal sanctions and may also be at risk of being sanctioned by OFAC (Office of Foreign Assets Control)," highlights the Treasury Department.

"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 an SDGT," it concludes.

Source: CNN