News
Latin American Development Bank May Face U.S. Sanctions Over Cuba Ties
By Brian Orsak and Carla Valero
printA new regional development bank intended to help Latin America maintain independence from the U.S.-based World Bank may be sanctioned by the U.S. government because of its ties to Cuba, former government officials said. Banco del Alba, launched Jan. 26 by Venezuela President Hugo Chavez and three of his allies as an alternative to the World Bank and a U.S.-backed free trade pact, includes among its members Bolivia, Nicaragua and Cuba, a country that has long been the subject of U.S. sanctions. Because the degree of Cuba's involvement in the organization remains unclear, "U.S. financial institutions should be following the...
TO READ THE FULL STORY
Related News
With its next presidential election less than a week away, Venezuela has more than an unplanned transition in leadership to sort out. It has, once again, a growing problem with capital flight.
U.S. lawmakers Thursday questioned how a blacklisted Lebanese terrorist organization works with political leaders and narco-traffickers in Latin America.
Congressional leaders called for the U.S. State Department to deem Venezuela a State Sponsor of Terrorism Friday for allegedly supporting Iran's nuclear weapons efforts and a blacklisted South American separatist group.
Crackdowns on currency exchange and bond swap businesses in Mexico and Venezuela are prompting some U.S. banks to turn away secondary market businesses in Latin America even when they operate legitimately, say consultants.
Italian authorities freeze $31 million at the Vatican Bank, MENAFATF criticizes Lebanon's AML regime and laundered art is returned to Brazil, in this week's news roundup.
Venezuela's takeover of at least 30 bond brokerages on money laundering charges will do little to stem the tide of illicit proceeds flowing into the country, say analysts.
A Swiss official warns that the United States plans legal action if a deal to hand over UBS account data is blocked, China announces that it has tweaked its counterterrorism laws and Ecuador says it will be off of FATF's blacklist by June, in this week's news roundup.
We never said compliance professionals had it easy, and 2010 doesn't look to be a year when things will be any better for the anti-money laundering and counterterrorism financing industry.
At least a dozen U.S. and foreign financial institutions are considering limiting operations in Venezuela or leaving the country entirely in the wake of threats to nationalize banks.
Compliance officers at some of the world's largest financial institutions are concluding they need to create sanctions-specific programs to avoid regulatory penalties and tarnished reputations, according to a Deloitte survey released Monday.
Brian Stoeckert, president of Los Angeles-based Stoeckert Consulting, Inc. spoke with reporter Larissa Bernardes about risks associated with a Venezuelan bond swap.
The incoming Obama administration is likely to scale back limits on remittances to Cuba imposed by President Bush, a move that would be welcomed by the U.S. financial community, according to bank regulatory specialists.
Bolivia's decision to oust the U.S. Drug Enforcement Administration from the country will likely open the way for increase in regional drug trafficking and organized crime, say analysts.
A Venezuelan securities exchange market has raised concerns among U.S. Treasury Department representatives, who say that the process lacks transparency and may be ripe for abuse, according to Luis Rivases, president of the Venezuelan Capital Markets Compliance Officers Association.
The U.S. Treasury Department blacklisted a Colombian money exchange house over its alleged ties to the Revolutionary Armed Forces of Colombia (FARC), a group identified as a terrorist organization by the United States since 1997.
Iran is considering purchasing at least one of three Venezuelan banks to circumvent international sanctions requiring many of the world's banks to freeze the funds of five Iranian financial institutions, according to anti-money laundering consultants and Iranian news reports cited by the BBC.
As sanctions lists have grown exponentially, individuals and groups who have been named have challenged the process with varying degrees of success. For example, removals from lists maintained by the United States are few and far between, experts say.
The Bush administration may blacklist Venezuela as a state sponsor of terror, a move that could restrict business between the South American country and U.S. companies, according to a news report.
Nine Republican lawmakers introduced a resolution to the U.S. House of Representatives Friday calling on the Bush administration to sanction Venezuela over its ties to the Revolutionary Armed Forces of Colombia (FARC).
U.S. and European banks are dropping their direct and correspondent relationships "and any other ties" with Cuba in an effort to protect themselves from any possible fines or actions they anticipate could be levied by U.S. regulators.