The Government Accountability Office published two reports in which it asserted that Nicolás Maduro's regime allows transnational criminal organizations to operate in Venezuela for drug trafficking and other criminal activities. The information was released this week in response to a request made by Senator James Risch in March 2021.
Reports detail that Venezuela's political instability fosters an environment for drug smuggling. In addition, it indicated that the corrupt political structure, as well as lack of security, allow officials to engage in illicit activities for illegal gains. "Illicitly-mined gold from Venezuela has been refined and its origins otherwise disguised in the Caribbean, Latin America, the Middle East, and Africa before entering international markets, according to U.S. government–funded research. Venezuelan gold was subsequently exported to countries in Europe, the Middle East, and East Asia," the documents state.
informe de la Usgao by LaPatilla
Connection with illegal groups
Likewise, the office highlighted that Maduro's regime collaborates with groups such as the National Liberation Army (ELN) and dissidents of the Revolutionary Armed Forces of Colombia (known as FARC). He explained that Venezuela is the preferred route for drug trafficking, which is imported mainly to the United States and Europe. "Drugs are trafficked through Venezuela, destined for U.S. and European markets. State has described Venezuela as a preferred route for trafficking drugs, predominately cocaine. Individuals in the Maduro regime collaborated with the National Liberation Army (Ejército de Liberación Nacional, known by its Spanish abbreviation ELN) and dissidents of the Revolutionary Armed Forces of Colombia (Fuerzas Armadas Revolucionarias de Colombia, known as FARC dissidents) to transport cocaine through Venezuela, according to the Commander of the U.S. Southern Command."
"DOJ has charged at least 35 individuals with money laundering–related crimes connected to Venezuela and secured convictions for some, according to reporting by DOJ’s Fraud Section. DOD monitors drug movements in the region, including those from Venezuela, and has provided money laundering–related intelligence analysis to U.S. law enforcement agencies," the report also states.
In this regard, the report pointed out that illegal trade associated with Venezuela also includes the sale of raw materials, such as oil and gold. It stressed the Venezuelan regime's relations with other totalitarian government systems, such as China. "Oil remains a major source of income for Venezuela and has been a mechanism for fraud and corruption, according to Treasury officials. Venezuelan oil continues to be exported to other countries, such as China," per the report
Regime members use their families to launder money
The Government Accountability Office indicated that members of the regime use their relatives to launder funds. "Venezuelan actors—including criminal organizations, corrupt individuals in the Maduro regime, and others—attempt to export these commodities globally and take steps to cloud their origins. Venezuelan actors use shell companies and familial or business contacts acting as proxies to hide their assets. Venezuelan elites continue to use complex transnational mechanisms to move, store, and trade their wealth abroad, according to State-funded research," the report states.
The agency maintained that the United States has efforts and policies in place to stop these activities of the Venezuelan regime with the support of its partners in the region. However, it also highlighted the difficulties faced by the authorities in dealing with the high flow of irregular acts. "Treasury officials noted that the volume of illicit financial flows is overwhelming for many partners in the region. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued financial advisories on corruption in Venezuela. Treasury also designated more than 300 individuals and entities related to Venezuela, blocking their assets and generally prohibiting U.S. persons (which include businesses, such as financial institutions) from dealing with them."
