The Trump administration is expanding its strategic use of the Anti-Terrorism Act to confront transnational criminal organizations (“TCOs”), signaling an ongoing shift in national security and foreign policy priorities. This evolving approach presents both compliance challenges and reputational risks for multinational businesses, particularly those operating in high-risk jurisdictions.
This policy focus is most recently reflected in the May 5th designation of Haiti’s gangs Viv Ansanm and Gran Grif as Foreign Terrorist Organizations (“FTOs”), due to their involvement in widespread violence and destabilization in the country.[1] These actions follow the February 2025 designation of eight TCOs, including organizations with operations in Mexico, Central America, and Venezuela, as FTOs, pursuant to Executive Order 13224 (90 Fed. Reg. 10030).[2]
As reflected in a Reuters report on May 7, 2025, the US Department of State also requested that Brazil classify São Paulo-based Primeiro Comando da Capital and Rio de Janeiro-based Comando Vermelho, as terrorist organizations. Although Brazilian authorities declined indicating that it did not view these criminal organizations as qualifying as terrorists under the relevant law, the request underscores the US commitment to aggressively pursuing TCOs through terrorism designations.
The message from the US administration is clear: the pursuit of TCOs will continue and companies operating in the region must take these developments seriously. In light of this shift, companies should reassess their risk management strategies to safeguard against financial, operational, and reputational exposure. Compliance programs must be updated to reflect the evolving regulatory landscape and designed to identify, monitor, and mitigate both internal and external risks associated with TCOs and international cartels.
While traditional anti-corruption and anti-money laundering measures remain critical, they do not fully capture the unique risks posed by FTO-related risks and enforcement. Companies should ensure their compliance programs are equipped to adapt to this shifting landscape.
[1] https://www.state.gov/foreign-terrorist-organizations/; https://www.reuters.com/world/us/us-designates-haitian-gang-alliance-viv-ansanm-transnational-terrorist-group-2025-05-02/
[2] https://www.state.gov/foreign-terrorist-organizations/
The Brazilian government rejected a request by the U.S. State Department to designate two major criminal gangs that officials believe to have members in the United States as terrorist organizations, Mario Sarrubo, Brazil's national secretary of public security, told Reuters on Wednesday.
