The state National Telecommunications Commission ordered "the immediate suspension of broadcasts by the news channel CNN in Spanish" in Venezuela, a government statement yesterday said.
President Nicolas Maduro had earlier said he wanted the US-based news channel "out" of the country, where state media dominate.
Foreign Minister Delcy Rodriguez told reporters the government had "ordered the relevant authorities to take action" against the channel.
Shortly after she spoke, the government made its announcement and the channel disappeared from the air, AFP reporters in Caracas said.
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CNN en Espanol on February 6 broadcast a report alleging that Venezuelan passports and visas had been sold at the Baghdad embassy to Arabs who the channel said may have been linked to terrorism.
The report named Maduro's new hardline vice president, Tareck El Aissami, as one of those behind the racket.
Hardline former interior minister El Aissami, 42, is next in line to Maduro and would take over if the opposition succeeded in its bid to oust the leader in a vote.
El Aissami was targeted separately on Monday by US authorities who announced sanctions against him for alleged drug trafficking.
The channel "has launched an operation of psychological warfare, a war propaganda operation," she said.
The US Treasury Department on Monday accused El Aissami and an ally, businessman Samark Jose Lopez Bello, of being major cocaine traffickers.
The drug allegations against El Aissami had already raised tensions between Washington and Caracas, which had so far been cautious in its stance towards the administration of new US President Donald Trump.
Maduro on Tuesday demanded the United States apologize for the sanctions and vowed to respond "forcefully."
Rodriguez lodged a diplomatic complaint yesterday with the US Embassy in Caracas.
The US Treasury department froze the US assets of El Aissami and Lopez Bello, and banned US nationals from doing business with them.
The Caracas government credits El Aissami with cracking down on drug trafficking while serving as interior minister.
But the US Treasury says he actually oversaw shipments of cocaine from Venezuela to Mexico and the United States.
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