• 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

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.

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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

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."

One former US diplomat with extensive regional experience told CNN that bypassing Treasury made little sense for the types of transactions the administration appears to envision, though they acknowledged Treasury may not typically handle such arrangements.

No Clear Distribution Mechanism

Under parameters outlined by officials, there remains no clear avenue for Venezuela to receive direct monetary gain from oil sales. Trump claimed in a separate Truth Social post that Venezuela committed to purchasing American-made products "with the money they receive from our new Oil Deal," including agricultural products, medicines, medical devices and energy equipment.

However, administration officials have not detailed how Venezuela would access funds to make such purchases if revenue flows through offshore accounts controlled by the US government and international traders.

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The administration has declined to specify how long it will maintain control over Venezuela's oil exports or provide a timeline for when normal commercial arrangements might resume. In an interview with the New York Times published Thursday, Trump said "only time will tell" regarding the duration of US oversight.

Legal and Diplomatic Complications

The financial arrangement adds to questions about the legal framework underlying US control of another country's natural resources. The administration authorized military operations Saturday that resulted in the capture of Venezuelan President Nicolás Maduro, who was transported to New York to face narco-terrorism charges.

Since Maduro's removal, the administration has been working with Delcy Rodríguez, who served as Maduro's vice president and was sworn in as Venezuela's interim president. Rodríguez herself remains under US sanctions imposed in 2018.

Vice President JD Vance told conservative commentator Scott Jennings on Tuesday the White House remains in "wait and see mode" on whether Rodríguez will "play ball" and cooperate with US demands.

Wright told energy executives at a Goldman Sachs conference in Miami that controlling oil sales provides Washington with necessary leverage to drive changes in Venezuela's governance and economic structure.

"We need to have that leverage and that control of those oil sales to drive the changes that simply must happen in Venezuela."

The administration has seized multiple Venezuelan oil tankers in recent weeks, including two announced Wednesday — one in the North Atlantic and another in the Caribbean.

Will Congress demand greater transparency and oversight before allowing the administration to implement this unprecedented offshore financial arrangement?

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