Venezuela

New Documents

U.S. prosecutors issued a press release to announce the arrest of Xiaofei Chen for his role in a fraud and crypto money laundering scheme.

The U.S. Attorney’s Office for the Eastern District of Texas announced charges filed against 21 individuals following investigations into a transnational cryptocurrency money laundering network.

News

Enforcement Actions

The Financial Conduct Authority imposed a £18,022,500 financial penalty on the London-based firm for activities that demonstrated a lack of integrity, including failing to take reasonable care to organize and control its affairs with respect to potential acts of bribery and corruption.

The Commission de Surveillance du Secteur Financier imposed an administrative penalty on the Luxembourg-based investment firm for anti-money laundering and counterterrorist financing failures.


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