Venezuela

New Documents

The Bank for International Settlements’ Innovation Hub published its work program for the 2021-22 fiscal year, highlighting central bank digital currencies, cybersecurity, and other areas of focus.

The United Kingdom’s Prudential Regulation Authority published Policy Statement 1/21 to make minor consequential amendments to the Notification Form and other updates to Senior Managers and Certification Regime Form L.

News

Enforcement Actions

Luxembourg’s Commission de Surveillance du Secteur Financier issued a €45,000 fine against the Grevenmacher, Luxembourg-based investment fund manager after an on-site inspection identified isolated anti-money laundering and counterterrorist financing compliance failures.

The U.S. Justice Department entered into a deferred prosecution agreement with the Indonesia-based global supplier of cigarette paper products to resolve charges that the company conspired to commit bank fraud in connection with the shipment of products to North Korean customers.


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