News
South American Development Bank Means Greater AML Risks, Say Consultants
By Brian Orsak and Carla Valero
printCORRECTION APPENDED A regional development bank planned by Venezuela may favor political agenda over international anti-money laundering standards, say consultants, which could create compliance problems for financial institutions doing business in the bank's member states. Venezuelan president Hugo Ch??vez announced the formation of the bank last May after deciding to end his country's membership in the International Monetary Fund over disagreements about the organization's lending policies. Nicaragua, Ecuador, Bolivia, Argentina, Paraguay and Uruguay have joined the project, called Banco del Sur, which is intended to be a regional competitor to the World Bank. Members of Banco del Sur have said...
TO READ THE FULL STORY
Related News
With its next presidential election less than a week away, Venezuela has more than an unplanned transition in leadership to sort out. It has, once again, a growing problem with capital flight.
U.S. lawmakers Thursday questioned how a blacklisted Lebanese terrorist organization works with political leaders and narco-traffickers in Latin America.
Congressional leaders called for the U.S. State Department to deem Venezuela a State Sponsor of Terrorism Friday for allegedly supporting Iran's nuclear weapons efforts and a blacklisted South American separatist group.
Crackdowns on currency exchange and bond swap businesses in Mexico and Venezuela are prompting some U.S. banks to turn away secondary market businesses in Latin America even when they operate legitimately, say consultants.
Italian authorities freeze $31 million at the Vatican Bank, MENAFATF criticizes Lebanon's AML regime and laundered art is returned to Brazil, in this week's news roundup.
Venezuela's takeover of at least 30 bond brokerages on money laundering charges will do little to stem the tide of illicit proceeds flowing into the country, say analysts.
A Swiss official warns that the United States plans legal action if a deal to hand over UBS account data is blocked, China announces that it has tweaked its counterterrorism laws and Ecuador says it will be off of FATF's blacklist by June, in this week's news roundup.
At least a dozen U.S. and foreign financial institutions are considering limiting operations in Venezuela or leaving the country entirely in the wake of threats to nationalize banks.
Brian Stoeckert, president of Los Angeles-based Stoeckert Consulting, Inc. spoke with reporter Larissa Bernardes about risks associated with a Venezuelan bond swap.
The passage of an Argentine bill intended to entice Argentineans to bank domestically will make it easier for criminals to launder money undetected, say consultants.
Bolivia's decision to oust the U.S. Drug Enforcement Administration from the country will likely open the way for increase in regional drug trafficking and organized crime, say analysts.
A Venezuelan securities exchange market has raised concerns among U.S. Treasury Department representatives, who say that the process lacks transparency and may be ripe for abuse, according to Luis Rivases, president of the Venezuelan Capital Markets Compliance Officers Association.
The U.S. Treasury Department blacklisted a Colombian money exchange house over its alleged ties to the Revolutionary Armed Forces of Colombia (FARC), a group identified as a terrorist organization by the United States since 1997.
Iran is considering purchasing at least one of three Venezuelan banks to circumvent international sanctions requiring many of the world's banks to freeze the funds of five Iranian financial institutions, according to anti-money laundering consultants and Iranian news reports cited by the BBC.
The Bush administration may blacklist Venezuela as a state sponsor of terror, a move that could restrict business between the South American country and U.S. companies, according to a news report.
Nine Republican lawmakers introduced a resolution to the U.S. House of Representatives Friday calling on the Bush administration to sanction Venezuela over its ties to the Revolutionary Armed Forces of Colombia (FARC).
Banco del Alba, launched Jan. 26 by Venezuela President Hugo Chavez and three of his allies as an alternative to the World Bank and a U.S.-backed free trade pact, includes among its members Bolivia, Nicaragua and Cuba, a country that has long been the subject of U.S. sanctions.