In brief

On October 9, 2020, the Central Bank of Venezuela (“CBV”) ordered the suspension of products and services offered by universal and microfinance banks that facilitate the payment in foreign currencies for goods and services in Venezuelan (“Notice”).1

In further detail

1. Authorized banking operations.

The Notice reiterated that universal and microfinance banks may solely mobilize and manage deposits of foreign currencies through:

  1. Wire transfers.
  2. Checks of the depositary bank to foreign correspondents.
  3. Debit instructions for consumer expenses.
  4. Withdrawals with debit or credit cards abroad.2

2. Suspension of payment in foreign currencies.

The Notice ordered the suspension of any banking product or service that facilitates the payment with foreign currencies of goods and services in Venezuelan territory, because there is no foreign correspondent acting in the transaction.

3. Non-bank Provider of Payment Services in foreign currency.

The CBV informed that it did not authorize any company to operate as a non-bank provider of payment services in foreign currency. Companies that offer those services without authorization will be subject to a fine of up to 1% of their paid capital and reserves.3