Venezuela Venezuela

New Documents

Police in Italy, Latvia, and Lithuania arrested 18 people linked to a €2 billion money laundering operation involving a Lithuanian financial institution as part of a coordinated action with the EU Agency for Criminal Justice Cooperation.

The U.S. Attorney’s Office for the Southern District of California announced the extradition of David Constantin for his alleged orchestration of a $5 million California unemployment fraud scheme.

News

Enforcement Actions

India’s Financial Intelligence Unit penalized the Odisha, India-based bank for failure to adhere to its anti-money laundering obligations under the Prevention of Money Laundering Act, 2002.

India’s Financial Intelligence Unit imposed a monetary fine on the Odisha, India-based bank for failure to adhere to its anti-money laundering and counterterrorist financing obligations.


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