OFAC Issues General License 57 – A Major Pivot for Venezuelan Banking

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has just released General License 57, significantly expanding the scope of authorized financial transactions involving key Venezuelan state banks and government individuals.

The What: Summary of the Authorization

GL 57 authorizes transactions ordinarily incident and necessary to the provision, exportation, or reexportation of financial services to, from or for the benefit of several major entities and individuals previously restricted under the Venezuela Sanctions Regulations (VSR):

• Key Institutions: Banco Central de Venezuela (Central Bank of Venezuela), Banco de Venezuela, S.A., Banco Digital de los Trabajadores, and Banco del Tesoro.
• Subsidiaries: Any entity owned 50% or more by these banks.
• Government Individuals: Current employees and individuals defined as "Government of Venezuela" under E.O. 13884, provided they are not on the SDN List.
• Scope of Services: Includes everything from wire transfers and ACH to digital wallets, credit, debit and prepaid cards, currency exchange, online payments, remittances, salary, pension and other employment related payments processing, and U.S. dollar-denominated correspondent account services, among others.

The Impact: Strategic Analysis

This move aims to stabilize the flow of legitimate commercial payments and remittances.

• For Banking Executives: This reopens vital correspondent banking pathways and simplifies the processing of payments, transfers, payroll and pensions.
• For Global Investors: It reduces the "over-compliance" friction that has historically hindered legal operations involving state-owned financial infrastructure.
• For Tech & Fintech: The explicit inclusion of "digital wallets" and "mobile money" provides a green light for modernizing payment rails in the region.

Disclaimer

This report is prepared for informational purposes only and does not constitute a legal advice. The interpretation and application of OFAC sanctions regulations are a complex area of U.S. law. Companies are strongly encouraged to consult qualified U.S. sanctions counsel before taking any action in reliance on GL 57. LEC Abogados is a Venezuelan law firm and does not practice U.S. law or provide advice on OFAC regulations. Information is current as of the date of publication.