Perceived risk is on the rise due to Venezuela’s suspected role in narcotics trafficking, relationship with Iran and alleged support of the FARC

Business between the United States and Venezuela is booming, with record highs in trade and private capital investments last year. At the same time, perceived risk is on the rise due to Venezuela’s suspected role in narcotics trafficking, relationship with Iran and alleged support of the FARC. Financial institutions can both retain their Venezuelan clients and manage risk by developing a sound compliance program that will satisfy heightened regulatory scrutiny. Venezuela was the United States’ third-largest trading partner in Latin America in 2007, with a record $50 billion in trade, just behind Brazil at $50.2 billion. Despite political tensions, total trade increased 8.6 percent, compared to only 4.6 percent in Mexico. The United States remains Venezuela’s largest oil customer, buying 65 percent of output.