Brazil’s drug gangs are earning significantly more from legal products like fuel, gold, and beverages compared to cocaine trafficking. A recent study indicates they garnered about 147 billion reais from these sectors in 2022, revealing a troubling shift of organized crime into the formal economy that incurs considerable tax losses for the state.
Brazilian drug gangs have pivoted from traditional cocaine trafficking to more lucrative sectors, earning considerably more from fuel and legal products. A recent Brazilian Forum of Public Security study reveals that in 2022, these organizations amassed approximately 146.8 billion reais ($25.4 billion) from legal activities, dwarfing the estimated 15 billion reais they generated from cocaine sales.
The report highlights the alarming trend of criminal groups diversifying into various legal economic sectors, including gold mining, beverage production, and even fintech services in São Paulo. This comprehensive study documents how organized crime infiltrates the formal economy, noting the substantial tax losses and complications arising from this expansion.
According to the research, these gangs are not only lucrative in drug trafficking but have also made millions from cybercrimes and theft, totaling an estimated income of 186 billion reais. Nivio Nascimento, one of the report’s authors, pointed out that while drug trafficking remains significant, the shift to formal markets signals a sophisticated evolution in criminal activities that enhances their operational capabilities.
The study illustrates a troubling evolution in Brazil’s organized crime landscape, where drug gangs increasingly rely on legitimate sectors for revenue. With substantial losses in tax revenue and heightened violence stemming from this expansion, Brazilian authorities face ongoing challenges in combating these sophisticated criminal networks. The findings emphasize the need for strategic law enforcement responses to address the broader implications of organized crime infiltrating legal markets.
Original Source: www.dallasnews.com
