US Department of Treasury Puts PCC on Asset Block List

The United States government included, on Wednesday (15), the First Capital Command (PCC) in a list of blockades by the Foreign Assets Control Agency (OFAC, in the acronym in English). The institution is part of the US Department of Treasury.

The inclusion is intended to expand the Treasury Department’s sanctioning capacity and is part of an executive order signed by President Joe Biden.

In total, 25 names – 10 people and 15 companies or organizations – from four countries were included in the list. The US government understands that the names pose a significant risk to international drug trafficking.

The measure was communicated this Tuesday morning to Brazilian authorities from Itamaraty, Federal Police, Planalto Palace, Ministry of Justice and Public Security and COAF (Council for the Control of Financial Activities).

This is the first time that a Brazilian criminal group is included in the list. In practice, the action represents a preliminary step so that it is possible to include specific members of the CCP in the list.

According to the US Embassy in Brazil, the objective of the measure is “to dismantle and limit the drug trafficking and money laundering activities of the PCC, the actions affect both countries”.

In the case of US financial institutions, the inclusion of a person or organization on the list means that those individuals can no longer have access to US bank accounts. In addition, financial institutions that control the accounts of individuals or organizations must notify the Department of the Treasury.

In relation to other countries, foreign banks will be notified of the concern of the US government. If foreign financial institutions have branches in the United States, these banks could be fined and eventually have their licenses revoked. In addition, they may be supervised by US government authorities.