Identifier: | 04CARACAS100 |
---|---|
Wikileaks: | View 04CARACAS100 at Wikileaks.org |
Origin: | Embassy Caracas |
Created: | 2004-01-09 19:34:00 |
Classification: | CONFIDENTIAL |
Tags: | ECON EFIN PGOV VE |
Redacted: | This cable was not redacted by Wikileaks. |
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 CARACAS 000100 SIPDIS STATE FOR WHA/AND, EB NSC FOR SHANNON TREASURY FOR OASIA - GIANLUCA SIGNORELLI USCINCSO FOR POLAD E.O. 12958: DECL: 01/08/2014 TAGS: ECON, EFIN, PGOV, VE SUBJECT: GOV SEIZES USD 2.5 MILLION BELONGING TO LARGEST FOREIGN EXCHANGE FIRM CLASSIFIED BY: AMBASSADOR CHARLES S. SHAPIRO FOR REASONS 1.4(B) AND (D) ------- SUMMARY ------- 1. (C) VENEZUELAN CUSTOMS AUTHORITIES SEIZED A SHIPMENT OF USD 2.5 MILLION IN CASH OWNED BY ITALCAMBIO, THE COUNTRY'S LARGEST CURRENCY EXCHANGE HOUSE. THE MONEY WAS ABOARD A FLIGHT FROM MIAMI. ITALCAMBIO PRESIDENT CARLOS DORADO CLAIMED THE SHIPMENT WAS ROUTINE AND THE SEIZURE IS IN RETALIATION FOR HIS ANTI-CHAVEZ OPINIONS. HOWEVER, SUPERINTENDENT OF BANKS IRVING OCHOA SAID ITALCAMBIO IS UNDER INVESTIGATION FOR VIOLATION OF VENEZUELAN BANKING LAWS. VENEZUELAN AUTHORITIES AND THE PRO-CHAVEZ PRESS HAVE USED THE SEIZURE TO PROMULGATE CONSPIRACY THEORIES THAT IMPLICATE THE USG IN VARIOUS NEFARIOUS SCHEMES. END SUMMARY. ---------------------- CASH SEIZED ON ARRIVAL ---------------------- 2. (SBU) DECEMBER 30 VENEZUELAN CUSTOMS AGENTS AT SIMON BOLIVAR INTERNATIONAL AIRPORT SEIZED A SHIPMENT OF USD 2.5 MILLION IN CASH THAT ARRIVED ON AN AMERICAN AIRLINES FLIGHT FROM MIAMI. THE MONEY WAS CONSIGNED TO ITALCAMBIO, VENEZUELA'S LARGEST FOREIGN EXCHANGE HOUSE AND TRAVEL AGENCY. VENEZUELAN AUTHORITIES CONTINUE TO HOLD THE CASH AND CLAIM THAT ITALCAMBIO FAILED TO PROPERLY DECLARE THE SHIPMENT. AMERICAN AIRLINES PERSONNEL HAVE TOLD US CUSTOMS OFFICERS THAT THE SHIPMENT WAS DECLARED PROPERLY BOTH ON DEPARTURE FROM MIAMI AND ON ARRIVAL IN CARACAS. --------------------------- ITALCAMBIO: "ROUTINE" --------------------------- 3. (C) ITALCAMBIO PRESIDENT CARLOS DORADO TOLD ECONCOUNS JANUARY 6 THAT THE SEIZURE WAS PART OF A PATTERN OF GOV HARASSMENT OF HIS FIRM IN RETALIATION FOR HIS FREQUENT ANTI-CHAVEZ STATEMENTS TO THE PRESS. HE SAID THE SHIPMENT WAS A ROUTINE ACTIVITY DRAWN FROM THE COMPANY'S BANK OF AMERICA ACCOUNT IN THE US THAT REQUIRED NO SPECIAL ADVANCE CUSTOMS NOTICE AND THAT FOLLOWED BOTH US AND VENEZUELAN DECLARATION REQUIREMENTS. DORADO CLAIMED THAT AN OVERZEALOUS VENEZUELAN CUSTOMS OFFICIAL AT THE AIRPORT HAD REPORTED THE ARRIVAL OF THE MONEY TO NATIONAL CURRENCY CONTROL ADMINISTRATION (CADIVI) PRESIDENT EDGAR HERNANDEZ BEHRENS. HERNANDEZ BEHRENS APPARENTLY, AND MISTAKENLY, CALLED THE SHIPMENT "CONTRABAND" ACCORDING TO DORADO. GIVEN HIS FIRM'S PLACE AS AN IMPORTANT CONDUIT FOR LEGAL DISPERSAL OF CADIVI-APPROVED EXCHANGE TRANSACTIONS, DORADO SAID HE WOULD CALL ON THE SUPERINTENDENCY OF BANKS (SUDEBAN) AND THE CENTRAL BANK TO ACKNOWLEDGE THAT ITALCAMBIO'S ACTIONS WERE LEGITIMATE. HE STRESSED THAT THE MERE IMPORT OF DOLLARS FROM THE US WAS NOT A CURRENCY "TRANSACTION" THAT FOREIGN EXCHANGE CONTROLS WOULD GOVERN. THE MONEY, HE SAID, WAS BROUGHT IN PRECISELY SO IT COULD BE USED IN LAWFUL TRANSACTIONS. ---------------------- SUDEBAN: "YES, BUT..." ---------------------- 4. (C) IN TURN, SUDEBAN SUPERINTENDENT IRVING OCHOA TOLD ECONOFF JANUARY 6 THAT ON ITS FACE ITALCAMBIO'S ACTIONS WERE LEGAL. OCHOA SAID VENEZUELA HAS NO LAWS AGAINST THE IMPORTATION OF PROPERLY DOCUMENTED FOREIGN CURRENCY. HOWEVER, HE ALSO SAID THAT ITALCAMBIO COULD FACE LEGAL PROBLEMS IF IT COULD NOT ACCOUNT FOR ALL OF ITS IMPORTED DOLLARS IN CADIVI-APPROVED OFFICIAL EXCHANGE RATE OPERATIONS. IF NOT, THEN ITALCAMBIO WOULD HAVE VIOLATED VENEZUELA'S BANKING LAW ACCORDING TO OCHOA. HE WENT ON TO SAY THAT SUDEBAN AUDITORS ARE ENGAGED IN DETERMINING IF ITALCAMBIO HAD FOLLOWED THE LAW IN THIS REGARD. OCHOA NOTED THAT HE WAS AWARE OF THE IRONY IN INVESTIGATING ITALCAMBIO ON THESE GROUNDS WHEN INDIVIDUALS EXCHANGE DOLLARS ON THE STREET TWO BLOCKS FROM HIS OWN OFFICE. --------------------------------- "AND SPEAKING OF CONSPIRACIES..." --------------------------------- 5. (C) IN DISCUSSING THE ORIGIN OF THE MONEY AND ITALCAMBIO'S MOTIVATIONS, OCHOA CLAIMED THAT INVESTIGATORS FROM DISIP, VENEZUELA'S INTERNAL SECURITY SERVICE, HAD TOLD HIM THAT THEY HAD PROOF THE SHIPMENT WAS A FUNNELING OPERATION FROM THE USG CARACAS 00000100 002 OF 002 VE THE ACCUSATION; ECONOFF RESPONDED THAT SUCH A CLAIM WAS ABSURD. ------- COMMENT ------- 6. (C) PRO-CHAVEZ NEWSPAPER DIARIO VEA HAS MADE A PUBLIC CRUSADE OF THE ITALCAMBIO CASE. IT HAS FLOATED THEORIES THAT DORADO IS ENGAGED IN ACTIVITIES RANGING FROM BLACK MARKET CURRENCY EXCHANGE TO MONEY LAUNDERING TO USG-BACKED "CONSPIRACIES." INDEED, IN ONE BBC WEBSITE ARTICLE CULLED FROM A DIARIO VEA REPORT, THE EMBASSY WAS ACCUSED COMPLICITY WITH DORADO IN EFFORTS AT "DESTABILIZATION." THE PRESENCE OF A CONTRACTED ITALCAMBIO TRAVEL OFFICE IN THE EMBASSY PROBABLY PLAYS ITS PART IN FUELING SUCH WILD SPECULATION. ITALCAMBIO IS ALSO THE AMERICAN EXPRESS SUBCONTACTOR IN VENEZUELA. IN REALITY, ITALCAMBIO'S PROBLEMS ARISE FROM A CONFLUENCE OF FACTORS: DORADO AS CHAVEZ CRITIC, ITALCAMBIO AS LEGITIMATE EXCHANGE HOUSE AND PROBABLE CURRENCY BLACK MARKET AGENT, AND VENEZUELA AS CONSPIRACY THEORY HOTHOUSE. IRVING OCHOA IS A PRAGMATIST WHO IS LOATHE TO ALLOW SUDEBAN TO BE USED AS A TOOL OF POLITICAL PRESSURE, BUT IN THIS HIGH PROFILE CASE HE CANNOT TURN OFF THE SPOTLIGHT. DORADO REMAINS COMBATIVE AND SAYS HE WILL NOT RESTRICT HIS CRITICISM OF CHAVEZ REGARDLESS OF THE OUTCOME OF THE INVESTIGATION. AS VENEZUELAN LAW IS AT BEST MURKY IN THE RELEVANT AREAS, THIS PROCESS WILL BE PROTRACTED AND FILLED WITH INVECTIVE. SHAPIRO NNNN
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