Venezuela, already under US sanctions, is expected to be added to the Financial Action Task Force (FATF)’s “gray list” for insufficient progress in combating illicit financial flows. The FATF, based in Paris, may place Venezuela on the list by June 28 during its plenary in Singapore, though no final decision has been made yet. To avoid the gray list, a majority of FATF members must agree Venezuela has made adequate improvements since its evaluation period started. Only a few dissenting votes could lead to its inclusion on the list, which flags countries for banking deficiencies and prompts closer monitoring. Being gray-listed could deter foreign investment, as indicated by an International Monetary Fund 2021 report noting significant reductions in capital inflows for gray-listed countries. This potential designation adds to Venezuela’s existing challenges, as it already faces rigorous financial sector compliance due to sanctions from the US and EU for corruption and criminal activities. An evaluation team visited Venezuela in early 2022, highlighting risks like money laundering tied to its informal economy and terrorist financing linked to its economic relations with Iran. Monaco is also expected to join the gray list, which already includes about 20 countries such as Nigeria, South Africa, and Syria. While a gray-list status isn’t as severe as a black-list classification, it indicates a nation is taking steps to rectify financial system deficiencies. The pending decision coincides with a forthcoming election where President Nicolás Maduro faces opposition from Edmundo González, who leads significantly in polls. The FATF, which has around 40 members, did not comment on the situation, nor did Venezuela’s Central Bank and Information Ministry. The FATF’s global standards for money laundering and terrorist financing apply widely, and Venezuela’s evaluation by its regional body, the Caribbean Financial Action Task Force, contributes to ongoing discussions. Original text by Ben Bartenstein and Andreina Itriago Acosta, published in-> YahooFinance

Krull told AP that In 2017, a client asked him to move $200 million in profit from a fake loan made to PDVSA into a foreign bank account for two friends. Krull connected them with a money manager in Panama. Later that year, Krull finally met the beneficiaries of the sum – three men donned in gold chains and baseball caps, introduced as “Los Chamos”. They were the sons of Maduro’s first wife, Cilia Flores. By Alice Elizabeth Taylor. Full Text ->The Shift