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Web Alert: US sanctions and Venezuelan crypto-currency

12 April 2018

Members trading to Venezuela should be aware that any transactions made through US banks in connection with their Venezuelan trade may be ultimately used to purchase Petros.

The Petro is Venezuelan crypto-currency that is backed by the country's petroleum reserves. US Executive Order 13827 prohibits US persons from providing financing for or engaging in any dealings in the Venezuelan crypto-currency. OFAC has indicated that a US bank which processes an advance payment to a Venezuelan port agent, a portion of which would be used to purchase Petros, would be in violation of Executive Order 13827. Therefore, members should anticipate that US banks will scrutinize all financial transactions relating to Venezuela.

Read more in the bulletin from Freehill Hogan & Mahar LLP here