The US government is likely to prohibit payment giants Visa and Mastercard from processing transactions in Venezuela, Reuters reported citing a senior government official.

If cleared, the move will specifically target the elite loyalists supporting Venezuela President Nicolás Maduro including military group members, Cubans and armed gangs in Venezuela.

However, ordinary civilians can still use these payment methods for food and medicines, report added.

The US administration may also block state-owned financial institutions’ access to Belgium-based financial messaging service SWIFT.

The sanction may also be imposed on Venezuelan financial institutions that are said to be close to President Maduro.

Reuter’s reports added that sanctions could also target the country’s overall financial sector.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The purpose of these sanctions is to continue to deprive the illegitimate Maduro regime of access to funds, and deny their ability to continue stealing from the Venezuelan people,” Reuters quoted the undisclosed source as saying.

The US has imposed many sanctions on Maduro’s government, his allies and the country’s oil company PDVSA, after recognizing opposition leader Juan Guaido as the interim president of Venezuela at the end of January this year.

Recently, the U.S. Department of the Treasury sanctioned Russia-based Evrofinance Mosnarbank for trying to circumvent US sanctions on Venezuela.

US treasury secretary Steven Mnuchin in a press statement said: “The illegitimate Maduro regime has profited off of the suffering of the Venezuelan people. This action demonstrates that the United States will take action against foreign financial institutions that sustain the illegitimate Maduro regime, and contribute to the economic collapse and humanitarian crisis plaguing the people of Venezuela.”