Puerto Rico’s Financial Institutions Under Scrutiny as FinCEN Director Visits Island to Combat Illicit Finance
Enhancing Collaboration between Law Enforcement and Financial Institutions
From February 20-22, U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki visited Puerto Rico to tackle public corruption, fraud, and drug trafficking. The visit aimed at strengthening collaboration between law enforcement and financial institutions on the island.
FinCEN Exchange in Puerto Rico
Gacki hosted the first FinCEN Exchange in Puerto Rico, bringing together representatives from the financial industry and federal and regional law enforcement agencies to enhance communication and support law enforcement efforts. The event focused on the importance of Suspicious Activity Reports (SARs) in combating illicit finance.
Discussions on Illicit Finance Threats
Participants shared views on ways to improve communication and support law enforcement efforts, discussing topics such as:
- Drug trafficking
- Money laundering
- Related issues affecting Puerto Rico
Gacki also met with federal and commonwealth officials, including the U.S. Attorney for the District of Puerto Rico, Secretary of State, and Commissioner of Puerto Rico Financial Institutions, to discuss illicit finance risks of mutual concern.
Recent Enforcement Action
In a significant move, FinCEN assessed a $15 million civil money penalty against Bancrédito International Bank and Trust Corporation, a Puerto Rican international banking entity, for violating the Bank Secrecy Act six months prior. FinCEN is urging financial institutions to monitor and report suspicious activity related to public corruption, fraud, and drug trafficking.
Ongoing Efforts
FinCEN continues to issue advisories and alerts on these issues, including its 2022 advisory on kleptocracy and foreign public corruption. The agency’s efforts aim to protect national security and citizens from harm by combating money laundering and its related crimes, including terrorism, through public-private dialogue and industry focus on high-impact activities.
Key Takeaways
- FinCEN Director Andrea Gacki visited Puerto Rico to enhance collaboration between law enforcement and financial institutions.
- The visit highlighted the importance of SARs in combating illicit finance.
- Participants discussed drug trafficking, money laundering, and related issues affecting Puerto Rico.
- FinCEN continues to issue advisories and alerts on illicit finance threats, urging financial institutions to monitor and report suspicious activity.