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The Federal Reserve Board announced today the issuance of a Temporary Cease and Desist Order against Banco Industrial de Venezuela, Caracas, Venezuela, to address serious deficiencies in the bank's anti-money laundering program.
The Board's order is identical to the ones issued on May 18 against four Mexican banks and one Spanish bank, and results from the extensive undercover "sting" operation conducted by the U.S. Departments of Justice and Treasury. In connection with the undercover operation, a Banco Industrial de Venezuela official has been charged with violations of U.S. criminal money laundering statutes, and she was arrested on May 19. This arrest was done in conjunction with the arrests of several Mexican bankers over the weekend. The Board's Temporary Cease and Desist Order requires Banco Industrial de Venezuela, among other things, to implement new anti-money laundering policies and procedures designed to correct the deficiencies in its current program. Federal Reserve examiners will continue to monitor the activities of the bank in the United States to ensure full compliance with all applicable money laundering-related laws and regulations. |