ustoms procedures and should provide better control measures. President Hugo Chavez Frias has included fighting corruption and combating drug transit as priorities for his new administration. Chemical control in Venezuela is critical for drug control in this hemisphere because Venezuela is a common transit point for essential chemicals destined for Colombia. In November, the CNA obtained interagency agreement on new regulatory procedures for major chemicals subject to diversion for use in illegal drug production. This long-awaited agreement provides a framework for chemical control and represents a vital step towards reducing chemical diversion. Under the new regulations, the Ministry of Industry and Commerce will have primary responsibility for controlling precursor and essential chemicals. The regulations will establish a tracking and accounting procedure (and fines for failure to comply with the procedure) for importers of chemicals on the list. The National Anti-Drug commission (CNA) will serve as a central coordinating and oversight body. The CNA also acted to facilitate the creation of a central Venezuelan Financial Intelligence Unit (FIU). This unit has been established in the government's body with responsibility for regulating financial institutions. the Superintendency of Banks. The FIU receives and analyzes the currency transaction reports and suspicious financial activity reports being submitted under strict reporting requirements adopted in 1997. Venezuela's banks, currency exchange operations and other financial institutions have complied with the new reporting requirements. In 1998, 32 currency exchange businesses were closed in the border region for suspicious activities possibly connected with money laundering. The FIU staff, under the direction of the Venezuelan Attorney General's office, has also coordinated with U.S. Customs Service and the U.S. Department of Justice under the 1988 UN Drug Convention to analyze trans...
