Puerto Rican Bank Faces $15 Million Penalty for Anti-Money Laundering Violations
Major Enforcement Action
The Financial Crimes Enforcement Network (FinCEN) has imposed a $15 million civil money penalty on Bancrédito International Bank and Trust Corporation, a Puerto Rican international banking entity, for willful violations of anti-money laundering laws.
Violations and Penalties
- The bank failed to implement and maintain an Anti-Money Laundering program, despite being required to do so since March 2021.
- It processed millions of dollars in suspicious transactions through the United States on behalf of high-risk customers without conducting adequate due diligence or reporting these activities to FinCEN.
FinCEN Director’s Statement
“Bancrédito’s actions were a clear violation of the Bank Secrecy Act and put our financial system at risk,” said FinCEN Director Andrea Gacki. “Today’s action sends a strong message that money laundering through Puerto Rican international banking entities will no longer be tolerated.”
Bank’s Admissions
The bank admitted to violating the BSA by:
- Failing to timely report suspicious transactions
- Establishing a due diligence program for correspondent accounts
- Implementing an AML program
These violations included processing suspicious activity linked to foreign bribery and money laundering in Venezuela.
Failure to File Suspicious Activity Reports (SARs)
FinCEN’s investigation found that Bancrédito failed to file SARs for years, despite receiving warnings from its primary regulator, the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF).
Consequences
The bank’s failure to establish a due diligence program for correspondent accounts allowed nearly unfettered flow of funds through the U.S. financial system, jeopardizing the integrity of the country’s financial system.
Regional Risk
Bancrédito International Bank and Trust Corporation is one of the oldest and largest international banking entities in Puerto Rico, and its violations highlight the elevated risk of money laundering in this region.
FinCEN’s Message
FinCEN appreciates OCIF’s assistance in this matter and urges all financial institutions to take anti-money laundering measures seriously.