USA considers limits to payment processing in Venezuela

United States considering penalties that would prohibit Visa Inc., Mastercard Inc. and other financial institutions deal with transactions in Venezuela, announced an official of the administration.

If the Trump administration decides to go ahead, these sanctions could ban American companies from with entities that recognize Nicolás Maduro as president of Venezuela. US companies and other international companies use local institutions to process transactions, and most local financial institutions are state-owned enterprises.

Although the Treasury, the White House and other officials of the administrationlet's discuss how to proceed, No decision has been taken, said the manager. Similar limits have been imposed on international transactions in Syria, North Korea and Iran, and to a lesser extent in Russia.

The goal is to put pressure on Maduro and his allies in the military, as well as other connected upper-clbad Venezuelans who have access to bank accounts and credit cards. USA has some ability to manage restrictions so that they can exempt drugs or foods. It was not immediately clear how the sanctions against the banks would affect the majority of Venezuelans, who might not have access to bank accounts or credits.

The measure also likely to affect oil companies, electric, aeronautical and agricultural who do business in Venezuela, including General Electric Co., Cargill Inc. and American Airlines Group Inc., as well as their local contractors.

Visa and MasterCard represent the majority of transactions in the country. This restriction could also lead other international payment processors to withdraw from the country.

The sanctions would aim to continue to deprive Maduro's illegitimate regime of any access to funds and prevent further stealing from the Venezuelan people, said the official who requested anonymity to discuss the debates.

On Tuesday, Secretary of State Michael Pompeo announced that the United States will withdraw all remaining staff from his embbady in Caracas.