Puerto Rico Takes Steps to Prevent Money Laundering, Removed from High-Risk List
San Juan - In a significant move, Puerto Rico has taken steps to close the doors on illicit banking activity, according to Governor Pedro Pierluisi and U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence Brian Nelson.
Strengthening Regulatory Framework
The island’s central government and legislature have taken action to strengthen its regulatory and supervisory framework, which has resulted in Puerto Rico being removed from the high-risk list in the US Department of the Treasury’s 2024 National Money Laundering Risk Assessment. According to Commissioner Natalia Zequeira of the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF), the commonwealth’s efforts have focused on:
- Strengthening its investigative unit
- Supervising regulated entities
- Taking action against institutions that fail to comply with federal and state laws and regulations
Recent Mandates
Two recent mandates, Acts 44 and 45 of 2024, aim to improve the regulatory framework for International Banking Entities (IBEs) and International Financial Entities (IFEs).
Positive Development
“This is definitely positive news for Puerto Rico,” said Zequeira, “as it means that our financial sector, which operates from the island, is no longer considered a risk for the federal financial system. These institutions have adapted their operations to comply with money laundering prevention regulations.”
Praise and Commitment
Nelson, who traveled to Puerto Rico to discuss key illicit finance issues, praised the efforts of the OCIF and the governor’s office in strengthening anti-money laundering and countering the financing of terrorism (AML/CFT) regulations.
“We will continue to work together to eliminate potential risks of terrorism and money laundering in Puerto Rico and protect our nation and consumers,” said Pierluisi.
Background
The U.S. Treasury’s 2022 National Money Laundering Risk Assessment had identified increased risks in Puerto Rico due to the existence of “cooperativas” and IBEs and IFEs, which may present vulnerabilities to the US financial system. However, with recent actions, these entities are now considered to be in compliance with regulations.
Recent Developments
Nelson’s visit follows that of Andrea Gacki, Director of the Financial Crimes Enforcement Network (FinCEN), who hosted the first-ever FinCEN Exchange in Puerto Rico in February.