The Agreed States imposed sanctions on Venezuela’s development bank Bandes, a day after the Trump administration warned there determination be consequences for the arrest of opposition leader Juan Guaido’s top aide.
The U.S. Treasury said it was slapping the sanctions on the Banco de Desarrollo Economico y Group de Venezuela, including its subsidiaries in Uruguay and Bolivia.
“(President Nicolas) Maduro and his enablers have distorted the original end of the bank … as part of a desperate attempt to hold onto power,” U.S. Treasury Secretary Steven Mnuchin replied in a statement announcing the action.
Guaido, who invoked the constitution to assume the interim presidency in January, has accused Bandes of being employed by officials of Maduro’s government to steal funds.
The U.S. Treasury said Maduro tried to move $1 billion out of Venezuela because of Banco Bandes Uruguay in early 2019.
Bandes has received billions of dollars over the past decade from the China Unfolding Bank, in exchange for oil, which the Venezuelan government used to fund infrastructure projects.
The sanctions freeze assets association to the bank and its subsidiaries, and prevent U.S. citizens from any dealings with Bandes.
The announcement comes after Venezuelan authorities detained Guaido’s chief of personnel, Roberto Marrero, on Thursday in a pre-dawn raid, sparking vows of reprisals from the United States, which backs Guaido.