How U.S. Terrorist Designations are Reshaping Business across the Americas
São Paulo, June 8, 2026 — Recent U.S. terrorist designations impacting Latin American criminal organizations are creating a profound shift in the legal and compliance landscape for companies operating across the Americas. This was the central theme of a joint webinar hosted by TozziniFreire Advogados, WilmerHale, and Creel, García-Cuéllar, Aiza y Enríquez, bringing together leading experts from Brazil, the United States, and Mexico.
The discussion highlighted the far-reaching consequences of these designations, particularly for businesses with cross-border operations, ranging from criminal exposure and sanctions risks to heightened compliance expectations and due diligence obligations.
During the session, Isadora Fingermann, partner at TozziniFreire in the White Collar Crimes practice, noted that companies in Brazil are facing increasing complexity. She explained that, although Brazil does not impose corporate criminal liability in the same way as some other jurisdictions, businesses engaged in legitimate activities may nevertheless be exposed to criminal investigations when their operations intersect, even indirectly, with individuals or entities connected to criminal organizations.
She further observed that recent enforcement actions have shown how companies may face asset freezes, investigations, and reputational damage due to links, intentional or not, to illicit networks.
From a compliance perspective, Karla Maeji, partner at TozziniFreire, highlighted the urgency of adapting corporate governance and compliance frameworks to this evolving risk environment. She pointed out that this is a fast-moving issue that was not previously on many companies’ radar and that organizations across sectors, not only those in heavily regulated industries, must reassess their compliance programs, particularly in relation to third-party management, risk mapping, and ongoing monitoring.
Providing a U.S. legal perspective, Kimberly Parker, partner at WilmerHale, explained that the concept of “material support” under U.S. law is interpreted broadly. According to her, it may encompass financial transactions, services, or other forms of assistance provided to designated entities, whether directly or indirectly. She emphasized that, even in the absence of intent to support illicit activity, willful blindness or insufficient diligence may result in significant liability.
She also stressed that robust, risk-based due diligence plays a critical role not only as a compliance measure, but also as a mitigating factor in potential enforcement scenarios.
Christopher Cestaro, partner at WilmerHale and former Chief of the FCPA Unit at the U.S. Department of Justice, addressed the expansive jurisdictional reach of U.S. enforcement. He explained that U.S. jurisdiction may be triggered through various connections, including the use of U.S. financial systems, communication channels, or corporate structures. As a result, even companies operating primarily outside the United States may face exposure if a U.S. nexus is present.
He added that companies should carefully assess their global operations to identify potential touchpoints that could bring them within the scope of U.S. enforcement.
From a Mexican and cross-border perspective, Leonel Pereznieto, partner at Creel, García-Cuéllar, Aiza y Enríquez, highlighted the initial uncertainty experienced by companies following the designations. He noted that there has been widespread confusion across the region, particularly among companies with international operations, and emphasized that, despite the global impact, the center of gravity of enforcement remains in the United States, making it essential for companies to understand and navigate the applicable framework.
The panel concluded that companies operating in Latin America must adopt a more integrated, cross-border approach to compliance in light of the evolving enforcement environment. Enhanced due diligence, awareness of jurisdictional risks, and proactive compliance strategies are now critical to mitigating exposure.
Check out the full discussion:
