{"id":35131,"date":"2026-07-09T10:18:52","date_gmt":"2026-07-09T08:18:52","guid":{"rendered":"https:\/\/www.legalmondo.com\/?p=35131"},"modified":"2026-07-09T10:18:52","modified_gmt":"2026-07-09T08:18:52","slug":"cartels-compliance-data-privacy-new-brazil-risk","status":"publish","type":"post","link":"https:\/\/www.legalmondo.com\/es\/2026\/07\/cartels-compliance-data-privacy-new-brazil-risk\/","title":{"rendered":"Cartels, Compliance, and Data Privacy: The New \u00abBrazil Risk\u00bb"},"content":{"rendered":"

For many investors and law firms, the \u201cBrazil risk\u201d in the context of compliance is still largely viewed through the lens of labor issues, environmental matters, and state corruption. However, the actual scenario is much more complex and silent. Recently, US authorities have moved to classify the First Capital Command (PCC) and the Red Command (CV) as terrorist organizations, as they have been considered the largest criminal organizations in the West.<\/p>\n

What often escapes the international radar is that these groups no longer operate exclusively on the margins of society. Recent police operations in the financial heart of S\u00e3o Paulo, Faria Lima, have revealed sophisticated schemes in which the illicit capital of these organizations is laundered through highly complex corporate structures, infiltrating the formal economy through fintechs, investment funds, cryptocurrency brokers, agribusiness, and logistics companies.<\/p>\n

For foreign companies operating or seeking business partners in Brazil, the risk landscape has changed: the threat<\/strong> is no longer just an improper payment to a tax inspector, but the accidental (and disastrous) association with a transnational criminal organization <\/strong>operating under the guise of a legitimate supplier.<\/p>\n

This new Brazilian paradigm directly collides with the growing regulatory pressure against money laundering. For example, with the advancement of the European Anti-Money Laundering Directives (AMLD) and the upcoming Corporate Sustainability Due Diligence Directive (CSDDD), European parent companies are increasingly held accountable for their entire value chain. The requirement for enhanced due diligence, driven by the moves of the US Department of Justice, only increases the need for a new approach when doing business in Brazil.<\/p>\n

Operating in Brazil today requires rigorous Know Your Partner (KYP) procedures<\/strong> and in-depth background checks. It is not enough to verify whether the partner company has clearance certificates; it is necessary to identify the Ultimate Beneficial Owners (UBOs)<\/strong> and investigate the true origin of the funds<\/strong>, as well as the political and commercial connections of local directors.<\/p>\n

It is at this point that subsidiaries and business partners, especially European ones concerned with personal data protection, face a seemingly unsolvable conflict. To avoid links with organized crime infiltrated in the formal economy, compliance departments need to collect large volumes of data,<\/strong> cross-reference information from open-source intelligence (OSINT), and manage robust whistleblowing channels.<\/strong><\/p>\n

However, these investigative actions clash directly with the principles of the Brazilian General Data Protection Law (LGPD),<\/strong> which is largely inspired by the European GDPR:<\/p>\n