FROM A
DIFFERENT ANGLE by Kenneth Rijock
Financial Crime Consultant, for World-Check
US law enforcement investigating foreign bank in Caracas
10 March 2008

The pending criminal investigation, by US law enforcement, of a number of prominent Venezuelan banks, now includes one foreign-owned financial institution, according to a reliable source who has consistently delivered accurate information on banking investigations in the past. Since many foreign banks have subsidiaries, branches, agencies or representative offices in the United States, any regulatory, civil or criminal sanctions imposed would seriously impact those onshore entities, many of which have substantial assets that could be seized and forfeited. If you have been following the Colombian government's disclosure of evidence that clearly proves that the Chavez government has funded the FARC, a designated terrorist organisation, for several years, both the guilty domestic Venezuelan and foreign bankers have cause to worry, because terrorist financing charges, brought in the US, will result in extremely long sentences of imprisonment for those unlucky bankers who will be indicted. One wonders whether President Chavez himself will be indicted, a la Noriega, on terrorism charges, since he has been sleeping with the FARC since before his 1992 failed coup d'etat.

Rumours are also flying that a number of the targeted Caracas financial institutions have sought the advice of prominent Miami attorneys, who have recommended that they create major compliance policies and procedures, hold conferences, and in general make it look like these banks are genuinely involved in anti-money compliance and counter-terrorist financing programmes. It appears that the suggestions are being followed, for just the other day, I actually received a solicitation for an anti-fraud conference, to be held in Caracas. Such programmes will most likely be seen for what they are: window dressing, with no substance behind it, intended only to lull investigators into believing that compliance exists, and that it is effective. Nothing could be further from the truth. These bogus actions will be  seen for what they are; desperate moves.


In truth and in fact, in a country where the demands of "Bolivarian"government officials, facilitated by the greed of prominent bankers in the private sector, make a mockery out of the generally accepted industry standards of bank compliance, there is no effective AML and CFT in the Republic of Venezuela. The rules are subordinate to the wishes of a corrupt government following the orders of its president-for-life wannabee, who has deceived the population, whilst planning to build "Greater Colombia" with his FARC ally.

When bankers' heads roll, who will be named?
 

    

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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