Venezuela

New Documents

The European Council issued a press release summarizing foreign policy debates amongst member states during the Foreign Affairs Council meeting.

The U.S. Justice Department announced that Pavel Stassi and Aleksandr Skorodumov were sentenced for their roles in a scheme to provide “bulletproof hosting” services to cybercriminals between 2009 to 2015.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing two fines totaling €337,422 on the Sliema, Malta-based financial institution for breaches of the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Financial Supervisory Authority of Sweden, Finansinspektionen, issued an injunction to take remedial action against the Sweden-based subsidiary of Danske Bank A/S, requiring it to assess how its products and services may be used for money laundering or terrorist financing.


Important Facts

  • The U.S. State Department identifies Venezuela as a major money laundering jurisdiction. The country’s proximity to drug producing countries, an ineffective anti-money laundering regime, limited bilateral cooperation and endemic corruption in commerce and government make Venezuela vulnerable to money laundering and other financial crimes. Venezuela’s distorted foreign exchange system and price controls also create an opportunity for money laundering. The weak control of the border between Venezuela and Colombia has led to an expanding black market. Methods used to launder money include transfers via government currency exchanges; petroleum industry; minerals; and to a lesser extent, through commercial banks, gaming, real estate, agriculture, livestock, securities, and metals. Trade-based money laundering remains thriving in Venezuela (i.e. trade-based schemes used by drug traffickers, smugglers, travel agents, investitures and others). All Venezuelan government agencies and state-owned enterprises appear vulnerable to public corruption and money laundering. Though the Maduro government has expanded the country’s laws to combat organized crime, it has used such laws to suppress political opposition and as a method of intimidation. Although the reform has created criminal penalty for bribes between private companies, it excludes public companies and government employees. Venezuela has implemented enhanced due diligence procedures for foreign and domestic politically exposed persons.
Source: 2019 International Narcotics Control Strategy Report (INCSR)  

Rankings

FATF i

Technical Effectiveness
Compliant : 6 High :
Largely Compliant : 12 Substantial :
Partially Compliant : 17 Moderate :
Non-Compliant : 14 Low :

BASEL i

Rank : 20/141
Score : 6.56/10

TRANSPARENCY INTERNATIONAL i

Rank : 173/180
Score : 16/100

Tax Justice Network i

Rank : 61/133
Score : 69/100