• Administration officials told lawmakers Venezuelan oil revenue will not flow through US Treasury Department
• Money will be held in private international banks and managed through offshore accounts
• Democratic lawmakers express alarm over unprecedented financial arrangement lacking oversight mechanisms

WASHINGTON, DC (TDR) — The Trump administration plans to bypass the US Treasury Department and instead use offshore bank accounts managed by international oil traders to handle revenue from Venezuelan oil sales, according to multiple congressional officials briefed on the plan Wednesday.

Senior administration officials informed members of Congress that proceeds from selling Venezuela’s oil would not enter the Treasury Department but would instead be deposited into private banks outside the traditional US government financial system, according to five bipartisan congressional sources who spoke to PBS News and CNN.

The Department of Energy acknowledged Wednesday that funds would be placed in “globally recognized banks to guarantee the legitimacy and integrity of the ultimate distribution of proceeds.” However, officials provided few details about oversight mechanisms or how distribution decisions would be made.

Trump Claims Personal Control Over Funds

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President Donald Trump stated on Truth Social Tuesday that oil money would be “controlled by me, as President of the United States of America.”

“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States.”

Energy Secretary Chris Wright told CNN the funds would flow to “the interim authorities” in Venezuela, though the White House later disputed aspects of the reporting and said no final decisions had been made.

The unorthodox financial arrangement has alarmed lawmakers from both parties who question how the government will maintain oversight of the money, track its distribution, and ensure accountability.

Lawmakers Express Unprecedented Concerns

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Democratic Representative Melanie Stansbury of New Mexico expressed shock at the proposal during congressional briefings Wednesday.

“I have never in my entire life in public service and as a former Office of Management and Budget employee, ever heard of anything like this.”

Officials told lawmakers the administration would utilize a collection of international oil traders and offshore bank accounts to sell Venezuelan crude and manage resulting cash flows, according to CNN reporting. One congressional official characterized the arrangement as money going “offshore.”

The administration plans to begin by selling 30 million to 50 million barrels of sanctioned Venezuelan oil currently held in storage, valued at approximately $2.8 billion at current market prices. Secretary of State Marco Rubio told lawmakers this initial windfall would be funneled back into Venezuela.

Over time, the United States would continue selling oil as Venezuela produces it, with proceeds supporting investments that officials view as crucial to maintaining the interim government’s stability.

Questions About Venezuelan Benefit

Roxanna Vigil, who served as senior sanctions policy advisor at Treasury’s Office of Foreign Assets Control, raised concerns about how the arrangement would work in practice.

“Right now, the private sector has nothing official to go on to have any sort of assurance, or any sort of confidence that whatever is going to happen, how is it going to be authorized based on US sanctions.”

Vigil emphasized her primary concern centers on ensuring Venezuelan people actually benefit from their country’s oil wealth.

“My biggest concern related to all of this is how are the Venezuelan people going to benefit? Because the most vulnerable player in all of this and the one that so far has had the least say is the Venezuelan people.”

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