Brazil breaks up China-linked US$190m money-laundering ring tied to top crime syndicate

Brazilian prosecutors and police launched an extensive crackdown on a Chinese electronics distribution network accused of laundering more than one billion reais (US$190 million) over seven months through a system allegedly related to one of Latin America’s most powerful crime syndicates.

The Primeiro Comando da Capital, or PCC, syndicate allegedly sold imported consumer electronics throughout Brazil via a Chinese e-commerce platform called “Knup Brasil”, including mobile phone chargers, electronic scales and other accessories at competitive prices.

While the products themselves were legally sourced, investigators allege that the financial structure behind the sales was designed to conceal revenue, evade tax obligations and foster money laundering of drug proceeds.

According to São Paulo police, customers placed orders through the platform but were instructed to transfer payments via Brazil’s instant payment system, Pix, to separate companies with no legitimate commercial activity.

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Invoices were allegedly issued at artificially reduced values by third-party firms, creating what investigators described as a deliberate mismatch between declared income and actual cash flow.

South China Morning Post