The Rise of Brazil’s Criminal Empires

For decades, Brazil’s favelas – densely populated, often impoverished communities clinging to the hillsides of cities like Rio de Janeiro – have served as breeding grounds for criminal activity. However, the scale and sophistication of groups like CV and PCC have dramatically increased in recent years. What began as localized gangs focused on drug trafficking has evolved into diversified criminal enterprises involved in extortion, illegal utilities, and increasingly, sophisticated money laundering schemes.

On August 28th, Brazilian authorities seized 1.2 billion reais (approximately $220 million) in assets linked to the PCC, a significant blow but, according to Fergus Hodgson, publisher of the Impunity Observer and author of The Latin America Red Pill, “only a fraction of PCC’s revenues.” Hodgson emphasizes that these organizations are not isolated entities, stating, “This is a diversified organization that works with some of the world’s most important terrorist organizations.”

The expansion of these gangs isn’t confined to Brazil. Jim Weber, a former narcotics investigator with the Department of Homeland Security and founder of Streetwise Consulting, warns that Brazilian organized crime is increasingly impacting the United States. “So you’re going to see money laundering in the United States, and you’re going to see specific drug routes that have an indirect but significant impact on the United States,” Weber explains. “It is significant because Brazilian operations influence global drug prices.”

Beyond Drug Trafficking: Diversification and Corruption

Today’s Brazilian criminal groups are moving beyond traditional drug trafficking, exploiting vulnerabilities in infrastructure and governance. Edson Gomes, who runs Submundo Criminal, a social media venture focused on organized crime, notes that gangs like CV and PCC are now involved in activities previously dominated by milícias – groups of corrupt police officers – such as extortion of local businesses and control of essential services like water, gas, and internet. This diversification allows them to exert greater control over communities and generate substantial revenue.

A recent report to a parliamentary committee by Pedro de Souza Mesquita, a senior officer with the Brazilian Intelligence Agency, revealed that CV is involved in all existing conflicts between criminal factions in Brazil. This demonstrates the group’s pervasive influence and its ability to exploit instability. The unintended consequences of past policing strategies, such as the Pacifying Police Units (UPPs) launched in 2008, have also contributed to the problem, inadvertently facilitating the expansion of CV’s reach as leaders dispersed to other regions.

Did You Know?: The PCC is believed to have a highly organized internal structure, functioning almost like a parallel state within Brazil’s prison system, controlling inmates and coordinating criminal activities on the outside.

The Tri-Border Area and International Connections

The tri-border area between Brazil, Argentina, and Paraguay has become a key hub for illicit activities, including smuggling and money laundering. Hodgson points to the PCC’s involvement in this region, noting its potential links to terrorist organizations. The U.S. State Department is actively seeking information to disrupt the financial networks of Hezbollah in this area, highlighting the interconnectedness of transnational criminal and terrorist activities. The PCC was implicated in a massive $40 million heist in Ciudad del Este, Paraguay, in 2017, demonstrating its capacity for large-scale criminal operations.

Weber observes that these gangs are emulating the tactics of powerful Mexican cartels like Sinaloa and Cartel de Jalisco Nueva Generacion (CJNG), which were recently designated as foreign terrorist organizations by the U.S. State Department. This trend suggests a dangerous escalation in the sophistication and ambition of Brazilian criminal groups.

What steps can international law enforcement agencies take to effectively counter the growing influence of these Brazilian gangs? And how can Brazil address the underlying socio-economic factors that contribute to their rise?

Frequently Asked Questions About Brazilian Gangs

1. What is the primary source of revenue for Brazilian gangs like PCC?
   While drug trafficking remains significant, these gangs have diversified into extortion, control of utilities, and sophisticated money laundering operations, significantly increasing their income streams.
2. How are Brazilian gangs impacting the United States?
   Brazilian criminal organizations are increasingly involved in money laundering and establishing drug routes that indirectly affect the U.S. drug market and global drug prices.
3. What is the role of corruption in the growth of these gangs?
   Corruption within law enforcement is a critical factor, allowing gangs to operate with impunity and infiltrate various levels of society.
4. What is the ‘Pacifying Police Units’ (UPPs) strategy, and why hasn’t it been fully successful?
   The UPPs were intended to reclaim favelas from gang control, but inadvertently led to the dispersal of gang leaders to other regions, expanding their national reach.
5. Are Brazilian gangs connected to international terrorist organizations?
   Evidence suggests links between Brazilian gangs, particularly PCC, and international terrorist groups, especially in the tri-border area of South America.
6. What is the current status of Marcola, the leader of PCC?
   Marcola is currently serving a 232-year sentence in a maximum-security prison but is believed to still exert significant control over the gang’s operations.