South American Development Bank Means Greater AML Risks, Say Consultants

By Brian Orsak and Carla Valero

CORRECTION APPENDED A regional development bank planned by Venezuela may favor political agenda over international anti-money laundering standards, say consultants, which could create compliance problems for financial institutions doing business in the bank's member states. Venezuelan president Hugo Ch??vez announced the formation of the bank last May after deciding to end his country's membership in the International Monetary Fund over disagreements about the organization's lending policies. Nicaragua, Ecuador, Bolivia, Argentina, Paraguay and Uruguay have joined the project, called Banco del Sur, which is intended to be a regional competitor to the World Bank. Members of Banco del Sur have said...