Reported by Michael Pooler

(Excerpt shared below. To read full report, go to: https://www.ft.com/content/950c77e9-f311-4833-b74e-aed42b14e6bf)

Brazil has launched what it said was its largest ever operation against organised crime, targeting an alleged multibillion-dollar money laundering scheme orchestrated by a major drug gang which involved fuel sales, fintech companies and investment funds.

A national task force of 1,400 agents carried out raids in eight states on Thursday morning, with search and seizure warrants against 350 individuals and businesses. It also sought to freeze R$1bn in assets of those involved.

Officials said the Primeiro Comando da Capital (PCC) cartel was at the root of the racket. Born out of a São Paulo prison massacre in the 1990s, the PCC has grown into a multinational illegal drug conglomerate with tentacles in dozens of countries. 

Investigators say importers purchased oil products such as naphtha and diesel worth R$10bn ($1.9bn) between 2020 and 2024, using funds linked to a criminal gang. 

The scheme involved more than a thousand gas stations in 10 states that generated R$52bn of transactions over the period, they alleged. Together with fuel formulators and distributors they laundered illicit income and committed fraud such as fuel adulteration and tax evasion.