Puerto Rico Governor Signs Bill to Enhance International Banking Center Regulation
San Juan, PR - In a move aimed at strengthening the regulation of Puerto Rico’s international banking center industry, Governor [Name] has signed into law Act No. 110-2013, which makes significant amendments to the “International Banking Center Regulatory Act” (Act No. 52 of August 11, 1989).
Key Changes
The new law introduces several key changes designed to improve the oversight and supervision of international banking centers in Puerto Rico. One notable provision requires international banking entities to provide detailed information to the Office of the Commissioner of Financial Institutions (OCFI) regarding their operations and activities.
Additionally, the law enhances the OCFI’s authority to monitor and regulate these institutions, enabling it to take a more proactive role in ensuring compliance with regulatory requirements. The OCFI will also be empowered to impose stricter penalties for non-compliance, including fines and suspension of licenses.
Increased Transparency
The bill also aims to increase transparency by requiring international banking entities to maintain confidentiality only when required by law or judicial order. In cases where confidential information is shared with government agencies, the OCFI will ensure that confidentiality agreements are in place to protect sensitive data.
Effective Date
The new law takes effect immediately upon its approval, marking a significant step forward in Puerto Rico’s efforts to strengthen its international banking center industry and maintain its reputation as a reputable financial hub.
Key Provisions of the Law
- Requires international banking entities to provide detailed information to the OCFI regarding their operations and activities
- Enhances the OCFI’s authority to monitor and regulate international banking centers
- Increases transparency by requiring confidentiality only when required by law or judicial order
- Empowers the OCFI to impose stricter penalties for non-compliance, including fines and suspension of licenses
Background
Puerto Rico’s international banking center industry has grown significantly in recent years, attracting a wide range of financial institutions and investors from around the world. However, concerns have been raised about the need for greater regulatory oversight and transparency in this sector.
The new law is aimed at addressing these concerns by strengthening the regulation of international banking centers in Puerto Rico and ensuring that they operate in a transparent and compliant manner.