THE AMERICASCriminal Gangs Have Diversified Across Latin America, Making Them More Resilient – but Not Untouchable
Latin America’s most powerful criminal groups have expanded beyond the drug trade – and have become more resilient as a result. Criminal networks now draw revenue from illicit and legal sources alike. Many of them police neighborhoods and influence local politics. Brazil is one place where these trends are on display.
Latin America’s most powerful criminal groups have expanded beyond the drug trade – and have become more resilient as a result. That’s what my colleagues and I discovered while researching for a new study on the structural transformation of organized crime across Latin America and the Caribbean.
Criminal networks now draw revenue from illicit and legal sources alike. Many of them police neighborhoods and influence local politics. Others invest in legitimate businesses and exploit global transport and financial systems, using shell companies and digital payment platforms to conceal the origins of their money.
Their businesses extend into ostensibly legitimate sectors ranging from mining to fuel. This diversification shields criminal groups from “enforcement shocks,” such as crackdowns on drug smuggling. It can also help them buy protection from compromised officials and allow organizations to embed themselves more deeply in local economies. The struggle is increasingly over who sets the rules and who can enforce them.
A Criminal Economy Hoes Corporate
Brazil is one place where these trends are on display.
On Aug. 28, 2025, more than 1,400 Brazilian law enforcement agents fanned out across eight states in what officials called the largest operation against organized crime in the country’s history. Their targets included more than a thousand gas stations, four ethanol plants, a trucking fleet, a port terminal, investment funds and offices on Avenida Faria Lima, the center of São Paulo’s financial district.
The investigation, known as Operation Hidden Carbon, exposed an alleged money laundering system tied to Brazil’s most powerful criminal organization, First Capital Command, or PCC. Investigators allege that the network used gas stations and other fuel businesses to launder illicit proceeds, channeling them through payment companies and investment vehicles that obscured their origins and ultimate ownership.
The scheme reportedly moved billions of dollars through the motor-fuel sector and a web of payment companies and investment vehicles, with some fintechs allegedly functioning as unlicensed banks. Authorities initially seized about R$1.2 billion, or roughly US$220 million, in assets.
Operation Hidden Carbon illustrates a broader shift in organized crime across the Americas. Several of the region’s largest organizations now combine drug trafficking with illegal gold mining, fuel theft, migrant smuggling and the manipulation of digital payment systems. Others have also moved into logistics, finance, real estate and municipal services.
