Venezuela

New Documents

Switzerland’s Federal Council announced that the Federal Act on the Adaptation of Federal Law to Developments in Distributed Electronic Register Technology will enter fully into force on Aug. 1, 2021.

HM Treasury’s Office of Financial Sanctions Implementation published a notice concerning amendments made to the identifying information of one individual designated pursuant to the Russia (Sanctions) (EU Exit) Regulations 2019.

News

Enforcement Actions

The Reserve Bank of India issued a monetary penalty of 12 lakh rupees against the Mumbai, India-based financial institution for violating know-your-customer rules.

The Reserve Bank of India issued a monetary penalty of 10 lakh rupees against the Maharashtra, India-based bank for not adhering to the know-your-customer requirements.


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