BBC: US detains man accused in multi-billion Venezuelan money laundering scheme

• Pulido was previously jailed in Venezuela since March 2023 for diverting profits from PDVSA and is now due to appear in US court on Tuesday.
• US authorities allege Pulido and co-defendants bribed officials, overcharged for contracts, and laundered profits through bank accounts abroad, including in the US.

Álvaro Pulido, a Colombian national wanted for allegedly laundering money illegally syphoned from a Venezuelan government welfare plan, was arrested in the US during a Homeland Security Task Force operation. He had been in jail in Venezuela since March 2023 for diverting profits from PDVSA and is now scheduled to appear in US court.

US prosecutors charged Pulido in two federal indictments for laundering more than $2bn in connection with Venezuelan government bribery schemes. Authorities allege he and four co-defendants bribed officials to secure contracts, overcharged the government, and laundered profits through bank accounts abroad, including in the US.

• $2bn alleged laundered funds in bribery schemes
• $10m reward for information leading to Pulido's arrest
• $350m alleged laundered funds from currency exchange scheme

• Review client and transaction records for links to Álvaro Pulido, Alex Saab, and co-defendants named in US indictments.
• Screen for payments, contracts, or accounts involving PDVSA and Venezuelan government welfare plans, as referenced in the US Attorney's Office statement.
• Check for suspicious activity involving bank accounts in Florida or other US jurisdictions tied to Venezuelan currency exchange schemes.

This case highlights the risks of large-scale government corruption and cross-border money laundering involving state contracts and welfare programs. Compliance officers must be vigilant for transactions linked to Venezuelan government entities, PDVSA, and individuals named in US indictments. The use of US bank accounts and bribery to secure contracts underscores the need for robust due diligence, monitoring, and reporting of suspicious activity, especially when dealing with politically exposed persons and high-risk jurisdictions.