Economic crimes can be found in the legislation within the constitution, penal code and other special laws. These definitions are understood from the Economic criminal law as the offenses that the State must sanction in order to guarantee a healthy economy. In this article we will explain some of these economic crimes in Venezuela and which are the laws that penalize them.
What are the Venezuelan laws that define economic crimes?
Although we cannot find a specific law on economic crimes, there are several laws that establish crimes associated with the country's economy. Currently we can find them in the following regulations:
Organic Law against Organized Crime and the Financing of Terrorism
Banking Sector Institutions Law
Economic crimes criminalized in Venezuela
Article 114 of the National Constitution establishes the first basis for the crimes included in the economic exercise in the country. This article states: "The economic illicit, speculation, hoarding, usury, cartelization, and other related crimes, will be severely punished according to the law". Giving the regulatory framework for the penalties of the following offenses that we will explain below.
Money laundering
Article 35 of the Organic Law against Organized Crime and Financing of Terrorism defines this crime as the conversion, transfer, conveyance, concealment, safeguarding, investment, concealment and any other type of activity related to goods, capital, assets or benefits derived from illicit activities.
Persons who, through imprudence, lack of skill or negligence, favor or contribute to the commission of this crime shall be punished with imprisonment from three to six years.
Tax fraud
The Organic Tax Code defines this economic crime in Venezuela as:
Tax fraud is committed by anyone who by means of simulation, concealment, maneuver or any other form of deception induces the Tax Administration into error and obtains for himself or a third party an unjust enrichment of more than two thousand tax units (2,000 T.U.) at the expense of the active subject to the collection of the tax. Fraud shall be punished with imprisonment from six (6) months to seven (7) years.
This penalty shall be increased from one half to two thirds, when the fraud is executed by concealing investments made or maintained in low tax jurisdictions. When the fraud is executed by unduly obtaining refunds or reimbursements for an amount greater than one hundred tax units (100 T.U.), it shall be punished with imprisonment from four (4) to eight (8) years.
Appropriation or diversion of resources from financial institutions
Official Gazette No. 6.015 dated December 28, 2010 defines this crime as follows:
Article 213: Appropriation or diversion of resources Those who with the intention of defrauding an institution of the banking sector and for the purpose of entering into banking, financial, credit or exchange operations, submit, deliver or subscribe, balance sheets, financial statements, and in general, documents or documents of any kind that turn out to be false, adulterated or forged, or that contain information or data that do not reasonably reflect their true financial situation, shall be punished with imprisonment from ten to fifteen years and with a fine equal to one hundred percent (100%) of the total amount of the amount misappropriated.
The same penalty shall be imposed on the natural persons referred to in Article 186 of this Law, of the institutions subject to the control of the Superintendency of Banking Sector Institutions, who, knowing the falsity of the aforementioned documents or documents, approve the aforementioned operations.
Fraudulent alteration of supply and demand conditions
The Venezuelan Penal Code penalizes forgery and other types of deceit with fraudulent information. Article 334 states:
"When any of the offenses specified in the preceding articles has been committed, with the purpose of procuring a means of proving true facts, the guilty party shall be punished with imprisonment from three to twelve months if, it is a matter of public acts; and with imprisonment from fifteen days to three months, if it is a private document."
Of swindling and other frauds
Article 464 of the Venezuelan Penal Code states:
"Whoever, with artifices or means capable of deceiving or surprising the good faith of another, inducing him in error, procures for himself or for another an unjust advantage with prejudice to another, shall be punished with imprisonment from one to five years."
At Alan Aldana & Abogados we have more than 20 years of experience in the field of Economic and International Criminal Law. Therefore, if you need advice on fraud processes, money laundering and other issues associated with the FINANCIAL LAW you came to the right place. We offer our clients assistance and preparation in the prevention of financial crime through the Corporate Compliance. In addition, our team of experts is certified in International Sanctions such as OFAC, EU, MAGNITSKY and GLOMAG so that your company does not have problems with any legislation in the world.
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