cross-posted from: https://news.abolish.capital/post/88188
Treasury Department says the reasons for Venezuela’s inclusion no longer exist.
On Thursday, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) removed Venezuela from the list of countries subject to restrictions on U.S. investment.
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Established under the 2025 Comprehensive Outbound Investment National Security Act (COINS Act), the list still includes countries such as China, Russia, Cuba, Iran and North Korea.
To justify Venezuela’s removal from the list, the Treasury Department said the reasons that led to the country’s inclusion no longer exist and that the current government does not meet the definition established by the COINS Act.
However, the OFAC announcement included a warning: The rule could still apply to certain investments in Venezuelan entities, although no details were provided.
“The COINS law significantly expanded the scope of U.S. controls on capital flowing abroad. The proposal requires notification in six sectors and five designated countries, and imposes a total ban on artificial intelligence. The public can submit comments through Dec. 7; the final rule will follow,” the financial website PitBullChain explained.
“The key distinction that must not be overlooked is that this is a mechanism for scrutinizing outbound investments. It is not a lifting of the OFAC sanctions regime. Removal from the COINS list does not mean that existing restrictions on specific individuals and entities disappear.”
“Venezuela’s removal from the COINS list can be interpreted as a sign of reduced friction: less friction for a U.S.-based exchange, a payment processor or a small fund to consider operating with Venezuelan counterparties without automatically falling into the category of a country under scrutiny,” the financial website added.
The list of countries included under the COINS Act was originally advanced with bipartisan support. Its goal was to expand oversight of capital flows into sectors considered sensitive to U.S. national security.
Regarding the scope of the policy, Treasury Undersecretary Chris Pilkerton explained that the program’s purpose “is to ensure that we have the ability to monitor and potentially prohibit those types of investments” that could pose risks to U.S. national security.
teleSUR/ JF
Sources: PitBullChain – OFAC
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