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Brazil to Seek U.S. Cooperation After Probe Links Delaware-Registered Firms to Money Laundering

Finance Minister Fernando Haddad said Brazil will seek a formal cooperation agreement with the United States to fight money laundering and curb illegal arms exports. The announcement follows a police operation in the fuel sector that found companies incorporated in Delaware, which Brazilian authorities believe may have been used to launder funds and disguise foreign investment. The pact aims to improve cross-border information-sharing and strengthen investigations.

03:01 AM, 11/28/2025Security
Brazil to Seek U.S. Cooperation After Probe Links Delaware-Registered Firms to Money Laundering

Brazil's government will request a formal cooperation agreement with the United States to combat money laundering and curb the illicit export of weapons, Finance Minister Fernando Haddad said on Thursday. The move follows a high-profile police operation in the fuel sector that uncovered companies incorporated in Delaware, which Brazilian authorities say may have been used to launder funds and disguise foreign investment.

Haddad warned that U.S.-based funds have been implicated in schemes to obscure the origin of money entering Brazil and to mask the true ownership of investments. He said the cooperation pact would aim to improve information-sharing, strengthen cross-border investigations, and tighten controls on financial flows and arms exports.

Why this matters

Authorities say using entities registered in U.S. jurisdictions can make it harder for foreign regulators to trace illicit transactions. A coordinated agreement with U.S. counterparts could speed up asset tracing, freeze suspect funds, and help dismantle networks that enable money laundering and illegal weapons transfers.

Next steps

The finance ministry is expected to open formal talks with U.S. agencies to negotiate the scope and mechanics of the cooperation. Officials have not yet released a timeline for the agreement or detailed measures that will be included.

Reporter: Marcela Ayres
Edited by: Alexandra Hudson

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