Exchange Crimes
Please click on http://www.traviesoevans.com/images/articulos/ar324/100517-extraordinario-5975-reforma-ley-ilícitos-cambiarios.pdf to access an extract of the Special Official Gazette of May 17, 2010 which contains the amendment of the Exchange Crimes Law. This amendment's most relevant aspect is the inclusion of the operations with securities denominated in foreign currency or that may be paid in foreign currency in the definition of what shall be understood as "FOREIGN EXCHANGE", as well as the provision that establishes that any operation with such securities (swap market) becomes of the exclusive competence of the Venezuelan Central Bank. Likewise, the violation of this provision was established as an exchange crime.

In the previous law, securities were not included in the definition of "FOREIGN CURRENCY" (except banking checks) and operations with securities were specifically excluded from the operations that constituted an exchange crime; therefore, the security swap market was not reserved to the Venezuelan Central Bank.

At this time it is not clear how operations with securities will be carried out and further regulation is expected. As soon as we have information in this regard, we will let you know.

The amendment entered into effect on May 17, 2010, date of publication of the above mentioned Official Gazette.