(Bloomberg) -- Venezuela’s banking regulator said it will monitor Bancamiga’s operations after some of its executives were detained on ties to fraud at Petroleos de Venezuela SA. 

The banking authority said it will “accompany and follow” Bancamiga to guarantee normal operations, as well as the safeguarding of client deposits, the regulator said in a statement on Monday.

Executives at Bancamiga, Venezuela’s sixth largest bank, were detained over the weekend on ties to a large scale fraud that allocated Venezuelan crude below market value in a scheme that bypassed the central bank. The operation was allegedly orchestrated by former oil minister, Tareck El Aissami, who was arrested earlier this month on treason, appropriation and money laundering charges.

The sweeping anti-corruption probe that started in 2023 revealed a financial black hole of billions of lost at state-owned PDVSA, the government’s most important source of funding.

Bancamiga accounts for about 6.4% of the nation’s total bank deposits, according to data by Aristimuño Herrera & Asociados.

Read More: Venezuela Detains Former Maduro Confidantes in PDVSA Probe

--With assistance from Fabiola Zerpa and Nicolle Yapur.

©2024 Bloomberg L.P.