Monday, January 30, 2012


Venezuelan President Hugo Chávez Frias reportedly stated yesterday that he would consider nationalising any banks that refuse to finance agricultural projects sponsored by the government. presently, approximately one-quarter of the country's financial institutions are government controlled.

The banks reportedly named by Chávez are;

(1) Banco Mercantil
(2) Banesco
(3) Banco Provincial

Whether this threat will actually result in the nationalisation of these, or other privately-owned banks, is not known, but due to the fact that the corrupt judicial system cannot be relied upon to redress such actions, and that compensation is rarely paid for nationalised property in Venezuela, there is a risk that bank owners could lose everything.

Risk managers whose banks deal with Venezuela would do well to monitor the situation closely.  

1 comment:

  1. Dear Kenneth:
    My name is Alejandra Sánchez. I am a journalist and I am trying to write an article for the spanish newspaper El Pais about money laundring in Belize, after the scandal of the Duque of Palm, Iñaki Urdangarín,
    I would like to interview you about this and to have your opinion of why Belize is a good destiny for money laundring and in what characteristics is distiguished from others tax havens.
    If you are interested, please give me your personal email or number and I 'll try to contact you as soon as possible.. My email is


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