Brazil’s Congress Rewrites Anti-Gang Bill As Asset-Seizure Powers Face Pushback

Brazil’s main anti-gang bill is being redrafted in Congress in a way that, according to investigators and tax officials, could weaken the state’s ability to quickly seize assets from large criminal schemes in fuels, trade and crypto.

The “PL Antifacção” was sent to Congress by the federal government to tighten action against criminal factions such as the Primeiro Comando da Capital (PCC).

The original text allowed authorities to freeze and sell assets when there were strong indications of criminal origin, while criminal cases continued in court. Federal Police and tax officials say this framework underpins major recent operations.

In August, Operation Carbono Oculto mobilised around 1,400 agents in ten states to dismantle what authorities describe as one of Brazil’s largest fuel and payments schemes linked to the PCC, involving hundreds of companies, fintechs and more than a thousand fuel stations.

Officials estimate that about R$52 billion ($10 billion) moved through the structure in recent years. In September, the Federal Revenue launched Operation Cadeia de Carbono against suspected fraud in fuel imports.

Two ships with petroleum and derivatives worth roughly R$240 million ($44 million) were retained under existing rules that allow the customs authority to declare “perdimento” – administrative forfeiture – of irregular cargo.

Tougher Seizure Rules and Crypto Oversight Under Fire

The bill’s current rapporteur, federal deputy Guilherme Derrite, has presented a substitute text that changes how these tools work. Draft articles 11 and 12 would require a final court decision before seized assets can be sold and would shift confiscation into a separate civil procedure.

Tax auditors, prosecutors and business groups in the legal fuel sector argue that this would slow enforcement and restrict the Revenue Service’s ability to declare contraband and under-invoiced goods lost to the state.

Derrite, a former São Paulo military police officer and current public security secretary in the state government, has said he is open to further changes and that his intention is to harden penalties while increasing legal certainty and protecting property rights.

Separately, the Central Bank has issued Resolutions 519, 520 and 521 to regulate virtual-asset service providers, requiring licensing, governance and anti-money-laundering controls.

A bill presented in the Chamber of Deputies seeks to suspend these rules, arguing they could harm the crypto sector. The Antifacção bill is still under discussion in the Chamber and may undergo further revisions before a final vote.

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