US strengthens sanctions on Venezuela
The US has upped its sanctions on Venezuela by banning ‘certain additional transactions’, and also designating a number of current or former government officials. Venezuela has been subject to an escalation in both US and EU sanctions attributed to repeated violations of individual freedoms by the Maduro government and concerns that recent elections lack legitimacy.
On 22 May, President Trump signed an executive order which prohibits US citizens from transacting in:
- The purchase of any debt owed to the Venezuelan government, including accounts receivable;
- Any debt owed to the Venezuelan government that is pledged as collateral after 21 May 2018 including accounts receivable; and
- The sale, transfer, assignment, or pledging as collateral by the Venezuelan government of any equity interest in any entity in which the Venezuelan government has a 50% or greater ownership interest.
The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) designated four Venezuelan individuals and three companies in Florida for corruption on 18 May. Three of the individuals designated are current or former government officials, whilst Rafael Alfredo Sarria Diaz was designated for being the ‘front man’ for one of the officials, Diosdado Cabello Rondón. The three Florida-based companies were designated for being owned or controlled by Sarria.
‘The Venezuelan people suffer under corrupt politicians who tighten their grip on power while lining their own pockets. We are imposing costs on figures like Diosdado Cabello who exploit their official positions to engage in narcotics trafficking, money laundering, embezzlement of state funds, and other corrupt activities,’ said Treasury Secretary Steven Mnuchin.
All US property and interests in property of those designated are blocked and US persons are prohibited from dealing with them.
For executive order dated 21 May see:
https://www.whitehouse.gov/presidential-actions/executive-order-prohibiting-certain-additional-transactions-respect-venezuela/
For EO 13692 see:
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/13692.pdf
For the US Department of the Treasury’s press release see:
https://home.treasury.gov/news/press-releases/sm0389
For OFAC’s list of those designated see:
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20180518.aspx
