The Venezuelan state oil company Pdvsa has been at the center of a vast corruption scheme involving the use of virtual currencies and bank accounts in various countries. The goal was to evade U.S. sanctions and continue selling Venezuelan crude oil in the international market. But how did this system work, and who were the key players?
Cryptocurrency Accounts and Front Companies
According to investigations by the Venezuelan prosecutor’s office, a significant portion of the payments for crude oil sales was made through cryptocurrencies. These transactions are estimated to have reached between $3 billion and $5 billion, although the actual figure could be much higher. However, cryptocurrencies were not the only instruments used by the people involved in the scheme. Millions were also moved in cash, through bribery and bank transfers using front companies and banks in Switzerland, Russia, the Middle East, and Caribbean tax havens.
Involved Banks
Among the banking entities allegedly involved in the financial networks of corruption are MBaer Merchant Bank, based in Switzerland, and Emirates NBD and Mashreq Bank, located in Dubai, United Arab Emirates (UAE). The role of Russian Gazprombank is also under investigation; it was acting as the receiving bank for Pdvsa payments in 2019, as well as China Citic Bank, where Pdvsa maintains accounts primarily for servicing the debt Venezuela has with China.
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The Key Operator: Alessandro Bazzoni
One of the central figures in this scandal is Italian financial operator Alessandro Bazzoni, who has been accused by the U.S. Department of the Treasury of being the successor to the financial operations of Nicolás Maduro’s frontman, Alex Saab, who was arrested for money laundering and corruption. Bazzoni had privileged access to the crude oil quotas that Pdvsa attempted to market internationally, thanks to his direct contact with retired Colonel Antonio Pérez Suárez, Pdvsa’s Vice President of Trade and Supply, considered a partner and protégé of Tareck El Aissami, the former Minister of Oil now fallen from grace. Bazzoni assisted Pdvsa in selling numerous shipments of crude while evading the sanctions imposed on the state oil company by the U.S. in 2019. Recently, Venezuela’s Attorney General issued an arrest warrant against Bazzoni in connection to this corruption case.
MBaer Merchant Bank: The Swiss Connection
The financial entity that reportedly played a crucial role in the corruption’s financial networks is Swiss MBaer Merchant Bank, closely linked to Italian operator Alessandro Bazzoni. This bank was founded in Zurich just six years ago by Michael Baer, who belongs to an old dynasty of bankers with a controversial history concerning Pdvsa and Venezuela. Michael Baer separated from Julius Baer Bank, also based in Zurich, when it was under investigation for facilitating money laundering operations connected to Pdvsa, businessman Raúl Gorrín, and three children of the regime’s First Lady, Cilia Flores. The representative of Julius Baer in Caracas, Swiss Matthias Krull, was arrested at Miami airport in 2018 and became a star witness revealing unknown details of how Julius Baer favored the personal finances of high-ranking Chavismo leaders. While Michael Baer did not play a direct role in managing Julius Baer’s operations in Venezuela, he presided over other financial institutions in Europe and the Middle East. In 2021, Michael Baer approved the entry of Norwegian Siri Evjemo-Nysveen, Bazzoni’s wife, into the board of MBaer Merchant Bank, but later withdrew her when the scandal erupted. Was this a direct consequence of the accusations involving her husband? Does Bazzoni hold significant investments or accounts at MBaer Merchant Bank? How, if at all, did MBaer participate in the irregular payment schemes related to Venezuelan crude oil transactions? Did the bank previously adhere to KYC (Know Your Customer) regulations concerning the relationship between Evjemo-Nysveen and Bazzoni?
Siri Evjemo-Nysveen
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