Regulatory Alerts2019-05-03
Updated Advisory on Widespread Public Corruption in Venezuela (FinCEN Advisory FIN-2019-A002)
The U.S. Financial Crimes Enforcement Network (FinCEN) issued this updated advisory to alert financial institutions to the ongoing, widespread public corruption in Venezuela under the illegitimate Maduro regime and its state-owned enterprises. The document details how corrupt Venezuelan officials and their associates exploit government contracts, shell companies, trade-based money laundering, nested accounts, and digital currencies to conceal illicit proceeds, while outlining recent U.S. Treasury sanctions and criminal prosecutions targeting these networks. Financial institutions are urged to apply a risk-based approach, monitor for specific red flags such as overvalued unbid contracts and purchases of high-value assets inconsistent with official salaries, and file suspicious activity reports to help disrupt these financial flows and mitigate associated humanitarian and legal risks.