News
In Venezuela’s Transition, Compliance Officers See Reason for Extra Scrutiny
By Brian Monroe
printWith 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. The March 5 death of President Hugo Chavez and the uncertainty about Venezuela's political future have exacerbated the country's ongoing currency troubles, according to bankers and regional consultants. In February, Venezuela saw the bolivar officially devalued, fueling an increasingly expensive black market for U.S. dollars and euros. The net effect has translated into a sharp increase, and perhaps a doubling, of capital flight from the country, according to...
TO READ THE FULL STORY
Related News
The U.S. House of Representatives passed a measure Wednesday clearing the way for financial sanctions against Venezuelan officials implicated in the country's violent crackdown on antigovernment demonstrators.
If you aren't certain that the Bank Secrecy Act job market is unusually active these days, ask anyone who has recently taken an executive position in a compliance department facing regulatory scrutiny. The message they're hearing: move quickly or move out of the way.
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.
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.
The U.S. government Friday blacklisted two senior Venezuelan officials and a former official - all in high-ranking positions pledged to fight criminals and terrorists - for aiding a designated terrorist group, a glancing blow to a country becoming increasingly more hostile to the U.S.
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.
The bank, which has not yet developed any AML regime, plans to set its official agenda in a meeting later this month, bank representatives said.