Crime Prevention Strategies for Financial Institutions in Puerto Rico Yield Positive Results

Puerto Rico has made significant strides in preventing illicit banking activity, leading to its removal from the high-risk list in the U.S. Department of the Treasury’s 2024 National Money Laundering Risk Assessment.

New Laws and Regulations

The island’s central government and legislature have implemented new laws and regulations aimed at strengthening financial institutions’ compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. These efforts have resulted in a significant reduction in non-compliance and latent risk, according to OCIF Commissioner Natalia Zequeira.

Improved Investigative Unit and Supervision

The Office of the Commissioner of Financial Institutions (OCIF) has focused on improving its investigative unit, supervising regulated entities more closely, and taking enforcement action against institutions that fail to comply with federal and state laws. This enhanced approach has led to a reduction in non-compliance and latent risk.

Acts 44 and 45 of 2024

Two new mandates, Acts 44 and 45 of 2024, have been passed to improve the regulatory framework for International Banking Entities (IBEs) and International Financial Entities (IFE). These laws require these entities to implement stricter AML/CFT measures and report suspicious transactions.

US Treasury’s Visit

The U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, visited Puerto Rico to discuss key illicit finance issues with government officials and the commercial banking sector. During his meeting with Governor Pedro Pierluisi and OCIF leaders, Nelson emphasized the importance of strengthening anti-money laundering regulations and promoting awareness among the business community about beneficial ownership reporting requirements.

FinCEN Exchange

Earlier this year, Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN), hosted a FinCEN Exchange in Puerto Rico. The exchange aimed to promote information sharing and cooperation between financial institutions, law enforcement agencies, and regulatory bodies.

Reduced Risks

The U.S. Treasury’s 2022 National Money Laundering Risk Assessment identified increased risks in Puerto Rico due to the existence of cooperativas (credit unions) and IBEs/IFE entities. However, recent actions taken by the OCIF and the passage of new laws have significantly reduced these risks.

Commitment to Compliance

Governor Pierluisi expressed his gratitude for Nelson’s support and commitment to helping Puerto Rico maintain a compliant financial system. “We will continue to work together to eliminate potential risks of terrorism and money laundering in Puerto Rico and protect our nation and consumers,” he said.

Nelson’s Visit

Nelson’s visit is expected to last three days, during which he will meet with top federal law enforcement partners to discuss counternarcotics trafficking and the illicit fentanyl trade.