🤝💰🏦 Truce, bribes and fintechs

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Good morning! The police today arrested trap singer Oruam for aiding a fugitive. We wrote about how Oruam has become a lightning rod for conservative vitriol due to his crime-themed songs. Some say this rage is a matter of race and class. Read our story.

Recent police operations show strength of organized crime

A Brazilian Federal Police operation on Tuesday targeted two fintechs — 2GO and Invbank — allegedly created to launder money for the Primeiro Comando da Capital (First Command of the Capital, or the PCC), a crime syndicate described by the US government as being “among the most powerful in the world.” A police officer listed as 2GO’s chief executive was arrested.

👉 Why it matters. The case exposes both how organized crime in Brazil is exploiting financial technology and regulatory loopholes to move millions of reais undetected, and how it has been successful in co-opting law enforcement agents.

Slipping through the cracks. São Paulo Prosecutor Lincoln Gakiya, who has investigated the PCC for nearly two decades, said the fintechs leveraged Brazil’s instant payment system Pix to evade scrutiny.

• A new tax rule earlier this year required fintechs to report monthly transactions over BRL 5,000 (USD 869) for individuals and BRL 15,000 for businesses, aiming to curb money laundering.

• The move set off a wave of disinformation, with far-right politicians falsely claiming the government was taxing Pix. Facing backlash, the Lula administration scrapped the rule.

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