Amid violent scenes in recent days the UK recognised the leadership of self-proclaimed leader Juan Guaido. The BoE is helping back Mr Guaido’s bid as it prevented Mr Maduro’s officials from withdrawing £0.9bn ($1.2bn) worth of gold kept in Britain. The British bank has been providing a “gold custody service” to Venezuela, but is now reserving the right not to give it back to the country.
A BoE spokeswoman told Express.co.uk “The Bank of England provides banking services – including gold custody services – to a large number of customers.
“The Bank does not comment on any of those relationships, which are subject to customer confidentiality.
“In all its operations, the Bank observes the highest standards of risk management and abides by all relevant legislation, including applicable financial sanctions.”
When prompted to explain why it is preventing Mr Maduro’s officials getting the gold, the spokeswoman referred to the bank’s code of conduct.
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She said: “As a financial institution, the Bank is committed to high standards of financial crime prevention and must comply with financial sanctions legislation.
“Under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, Proceeds of Crime Act 2002 and the Terrorism Act 2000, we each have a statutory duty to disclose, as soon as reasonably possible, information that indicates money laundering or terrorist financing is occurring or has occurred.
“This could include suspicions about attempts to abuse the Bank’s own processes in order to launder money or finance terrorists.
“This could also include indications that external institutions may be involved in, or instrumental to, money laundering or terrorist financing activity.”
The BoE’s move comes after Britain officially pledged its support to Mr Guaido, Venezuela’s opposition leader and elected President of the National Assembly who proclaimed himself President of the country on January 23.
Britain’s Minister of State Alan Duncan said: “We stand shoulder to shoulder with the United States in saying that the National Assembly and its President Juan Guaido are best placed to lead Venezuela to the restoration of its democracy, its economy and its freedom.”
Many other countries have already backed Mr Guaido’s attempt to overturn the socialist regime of Mr Maduro.
Among them, there are the US, Argentina, Brazil and Canada.
Australia has been the latest nation to back the opposition leader.
The country’s foreign minister Marise Payne said earlier today: “Australia recognises and supports the President of the National Assembly, Juan Guaido, in assuming the position of interim president, in accordance with the Venezuelan constitution and until elections are held.
“We now urge all parties to work constructively towards a peaceful resolution of the situation, including a return to democracy, respect for the rule of law and upholding of human rights of the Venezuelan people.”
Mr Guaido has been leading the country’s demonstrators since last week, urging protesters to march again this week on Wednesday and Saturday.
The self-proclaimed President had also asked the BoE to block withdrawals of the Venezuelan gold.
In two letters released by the leader’s party and addressed to Theresa May and BoE Governor Mark Carney, Mr Guaido claimed Mr Maduro wanted to repatriate gold from the BoE to sell it and move the liquid assets in the Venezuelan Central Bank.
He wrote: “I am writing to ask you to stop this illegitimate transaction.
“If the money is transferred it will be used by the illegitimate and kleptocratic regime of Nicolas Maduro to repress and brutalise the Venezuelan people.”
Mr Maduro’s Government is believed to have been attempting to get back the country’s gold since the end of last year amid fears Caracas would be hit by international sanctions.
The President was re-elected in 2018 for a second mandate and sworn in on January 10.
However, he has been accused of fraud by the opposition and Venezuelan demonstrators after rescheduling the date of the election twice and disqualifying some of the people running against him.