General License No. 57 - OFAC: Opening of Financial Services with the Venezuelan Public Banking.

On 14 April, the Office of Foreign Assets Control ("OFAC") issued General License No. 57 ("LG 57") as a strategic flexibility measure that allows operations and transactions of banking services with certain State entities, facilitating basic economic operation and the flow of international payments.

1. Authorized banking entities

The licence allows operations with the following institutions (including any entity where they have 50% or more of participation):

• Central Bank of Venezuela (BCV).
• Banco de Venezuela.
• Workers' Digital Bank.
• Treasury Bank.

2. Financial services allowed

• Account management: opening, maintenance and closing of bank account.
• Payments and remittances: use of debit / credit cards, ACH transfers, wire transfers and digital wallets.
• Salaries and benefits: payroll processing, wages, pensions and employment benefits.
• Correspondence: banking services and processing of payments denominated in United States dollars.

3. Restrictions and compliance

• It does not unblock assets: the release of properties that are already blocked by previous regulations is not allowed.
• SDN Exclusion: does not protect transactions with individuals on the list of sanctioned persons (SDN).
• Compliance Framework: institutions must maintain rigorous protocols of "Know Your Customer" (KYC), compliance with the PATRIOT Act and FinCEN regulations.

Conclusion: The LG 57 allows the reintegration of public banking into the global financial system for daily transactions. This reduces operating costs for companies and facilitates the receipt of payments, although it does not involve the total lifting of the sanctions regime.