The others US banks may be suspended transactions made in the Zelle app from Venezuela, due to improper use.
Unofficial It turns out that Zelle, The well-known peer-to-peer (P2P) payment platform may announce the suspension of its operations in Venezuela starting November 30, 2023 in some banks. As of Monday, November 20, the announcement has yet to happen.
It is estimated that the decision will be based on the limits imposed by the Office of Foreign Assets Control (OFAC) on USA, but these decisions are not confirmed.
Venezuela, classified as a “high risk” country by US banks for Zelle operations, has experienced a progressive deactivation and blocking of the application due to financial risks, according to a review. Notiactual.
The Zelle app has become an essential tool for millions of people around the world, but the growing threat of scams has led to major US banks, such as Wells Fargo in 2020 and CHASE in 2023, to prevent its use from Venezuela. These restrictions are linked to improper practices, such as using personal accounts to receive payments from merchants and lending accounts for third-party deposits.
The problem of Zelle scams led the management company to begin issuing refunds to victims, sparking a legal battle in the United States. However, the situation has spread internationally, and in the case of Venezuela, the increase in scams and complaints has prompted banks to limit the use of the application in countries where it was not designed in the first place.
Unofficially, it is known that the banks have warned about the use of VPNs to access the application from Venezuela, indicating that they are not responsible for possible incidents where the client’s money is at risk. This increase in financial risk has led some financial institutions to consider removing Zelle as a benefit to customers in the South American country.