Brazil Seeks U.S. Assistance in Fuel Sector Crime Crackdown

Brazil's Finance Minister Fernando Haddad announced plans to collaborate with the U.S. to combat organized crime within its fuel sector. This follows police findings of money laundering via Delaware firms. Additionally, concerns about illegal U.S. arms exports were raised in ongoing bilateral negotiations.

Brazil is turning to the United States for help in its campaign against organized crime within its fuel sector, as stated by Finance Minister Fernando Haddad. A recent police operation identified Delaware-based companies involved in money laundering, aiding significant tax evasion in the South American nation.

The issue is poised to become part of the bilateral agenda between Washington and Brasilia, as they pursue an expansive trade agreement following tariff reductions on certain Brazilian goods by the U.S. government. Beyond tax dodging, Haddad has brought up the critical concern of illegal U.S. arms shipments with President Luiz Inacio Lula da Silva.

The central target in Thursday's police raid was the privately-owned Refit refinery, implicated in a massive money laundering and fraud scheme as per Brazil's tax authority. Authorities claim billions of reais were funneled through various business channels to obscure profits, with Delaware firms allegedly exploiting U.S. tax rules to launder money.

(With inputs from agencies.)