The Israeli Ministry of Defense issued a statement to the Brazilian government, warning about the use of digital wallets with cryptocurrencies linked to a Brazilian fintech, supposedly connected to the Primeiro Comando da Capital (PCC). These financial movements would be intended for financing terrorist activities, according to Israeli legislation on terrorism.
The digital bank in question is said to have moved around R$ 500 million in a tracking that came to light in February of this year. In addition, the digital bank is already under investigation in Brazil for suspected money laundering associated with the PCC.
Brazilian authorities identified that the fintech facilitates the concealment of capital and the transfer of funds abroad, making it difficult for regulatory bodies to monitor. The connection between the digital bank and the financing of terrorism was discovered after a legally operating bank identified transactions between operators with suspicious digital wallets.
It is important to note that the PCC is already known for its links to international criminal and terrorist groups, such as Hezbollah. The Federal Police and other international organizations have been warning about this financial connection for at least two decades.