[6] RECADI saw widespread corruption, and became a substantial scandal in 1989 when five former ministers were arrested, although the charges were later dropped.
[7] Exchange controls under CADIVI were adopted on 5 February 2003 in an attempt to limit capital flight.
The Venezuelan private sector requires more foreign exchange for imports than it generates for exports, and is dependent on the Bank to satisfy the difference.
A double rate, Complementary System of Foreign Exchange Administration (Sistema complementario de administracion de divisas (SICAD I)), twice the official exchange rate but still favorable, goes to importers of culturally important items such as Scotch, popular in Venezuela, and Barbie dolls, again, popular with certain demographics.
[2][10] Fraud is widespread, with importers, regulators, and ordinary citizens stealing billions from the Venezuelan economy using one mechanism or another.