Puerto Rico Takes Steps to Combat Financial Crimes, Removed from High-Risk List
Puerto Rico has made significant strides in strengthening its regulatory framework and combating financial crimes, resulting in its removal from the high-risk list in the U.S. Department of the Treasury’s 2024 National Money Laundering Risk Assessment.
Efforts to Combat Financial Crimes
According to Governor Pedro Pierluisi, Puerto Rico’s efforts have focused on:
- Strengthening investigative units
- Supervising regulated entities
- Taking action against institutions that do not comply with federal and state laws and regulations
The island has also passed two mandates, Acts 44 and 45 of 2024, aimed at improving the regulatory framework for International Banking Entities (IBEs) and International Financial Entities (IFEs).
Role of the Puerto Rico Office of the Commissioner of Financial Institutions
The Puerto Rico Office of the Commissioner of Financial Institutions (OCIF), led by Commissioner Natalia Zequeira, played a key role in these efforts. “It’s definitely positive news for Puerto Rico because it means that this financial sector that operates from the island is no longer considered nationally as a risk for the federal financial system,” Zequeira said.
US Treasury’s Under Secretary for Terrorism and Financial Intelligence
The U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, recently met with Pierluisi and OCIF officials to discuss key illicit finance issues, including:
- Countering illicit fentanyl and narcotics trafficking
- Strengthening anti-money laundering and combating the financing of terrorism (AML/CFT) regulations
- Promoting awareness among the Puerto Rican business community of beneficial ownership reporting information requirements
Nelson praised the island’s progress, saying that the Treasury’s oversight has driven the types of reforms being seen in Puerto Rico. He also met with top federal law enforcement partners on counternarcotics trafficking and convened a roundtable with High Intensity Drug Trafficking Area (HIDTA) members to discuss the illicit fentanyl trade.
Significance of Removal from High-Risk List
Puerto Rico’s removal from the high-risk list is significant, as it means that financial institutions operating in the island are no longer considered a risk to the federal financial system. However, there is still more work to be done to ensure compliance and eliminate latent risks.
Conclusion
Puerto Rico’s efforts to combat financial crimes have paid off, resulting in its removal from the high-risk list. While there is still more work to be done, this achievement demonstrates the island’s commitment to strengthening its regulatory framework and combating financial crimes.