DIFFERENT ANGLE by Kenneth Rijock
The publicity and fallout surrounding the Antonini Venezuelan-Argentinian money laundering scandal has forced money managers handling criminal drug profits to modify their operations. Inasmuch as they now correctly fear that their illicit funds may be frozen in the United States, much of the new money entrusted for laundering is now being sent to financial institutions located in Western Europe. An increase in enquiries received from compliance officers and bankers relating to new Venezuelan clients confirms that the new destination for a large percentage of Colombian narcoprofits, much of which first transits Venezuela, is Europe. Ensure that this dirty money is not placed in your bank, for subsequent drug trafficking and money laundering indictments in the United States could result in severe reputation damage, or even willful blindness allegations, against the bank.
- The fact that a substantial account of one of the defendants in the Miami case, Caros Kauffman, was frozen prior to his arrest has not escaped notice in Latin America. US banks are obviously now taking no chances with Venezuelan Politically Exposed Persons (PEPs), or their close associates. How much of this is due to pressure from US law enforcment is unknown, but there are major narcotics investigations in progress, in Florida, involving prominent members of the so-called "Bolivarian Elite." wealthy businessmen, generally only in their thirties, who have made vast profits, ostensibly from their dealings with the Venezuelan government, How many of these individuals are fronting for narcotics traffickers? That is the central issue.
- On 27 December, defendant Franklin Duran entered a plea of not guilty in United States District Court in the Miami case. His counsel has filed a Motion to Revoke Pretrial Detention Order and to set De Novo Hearing, seeking his release on bond. Defendants Carlos Kauffmann and Moses Maionica are scheduled for Arraignment on 7 January.
- It appears that Guido Antonini Wilson will not be extradited to Argentina to face money laundering charges there. Obviously, he has received immunity from prosecution, and will be the government's primary witness at trial. The relationship between the defendants and a cocaine smuggling operation into Europe, the reported reason why Walter del Nogal was arrested in Italy, on orders of the Anti-Mafia Magistrate in Palermo. is an important matter which he may have been involved in.
Money laundering reporting officers and compliance offciers at financial institutions in European Union
countries should therefore conduct enhanced due diligence on all new high net-worth prospective Venezuelan
clients, bearing in mind that close associates of PEPs are also to be regarded as PEPs, as are senior officers of government-controlled companies.
Many purportedly privately-held Venezuelan companies are, in truth and in fact, beneficially owned by individuals at the highest level of the government. Do not accept what appears to be a private company without first ruling out government ownership and control. Do not let the prospect of promised high balances dazzle your new accounts staff; if Source of Funds cannot be verified to your satisfaction, decline the account.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
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