Puerto Rico Regulates International Banking Entities
New Regulations for International Banking Entities Operating on the Island
The government of Puerto Rico has announced new regulations for international banking entities operating on the island. According to a recent amendment to the “International Banking Center Regulatory Act” (Act No. 52 of August 11, 1989), any person wishing to establish an international banking entity in Puerto Rico must first obtain a permit from the Commissioner.
Permit Application Process
To apply for a permit, individuals must submit a written application, accompanied by a non-refundable fee of $5,000 and various documents, including:
- Articles of incorporation or partnership agreement
- Business history
- Credit information
The Commissioner will then conduct an investigation to determine whether the applicant is financially solvent, has good credit and banking experience, and intends to operate with integrity.
Required Information for Permit Application
Applicants must also provide detailed information about their proposed directors, officials, and persons who intend to act in a similar capacity. Additionally, applicants must submit a statement of assets and liabilities for each of the three years preceding the application.
Issuance of Permit
Once the Commissioner has determined that the results of his investigation are favorable, he may issue a permit to organize an international banking entity, subject to certain conditions. The interested party must then file the articles of incorporation or partnership agreement with the Department of State and obtain a certification of filing.
License Requirement
In addition to obtaining a permit, international banking entities operating in Puerto Rico must also obtain a license from the Commissioner. To obtain a license, applicants must provide various documents, including:
- Certified copy of their articles of incorporation or partnership agreement
- Proof of payment of an annual fee of $5,000
- Evidence that their capital has been subscribed to and paid in
Denial of License
The Commissioner may deny a license if he believes or has reason to believe that the applicant has violated any provision of the Act or regulations. Any person denied a license may request a hearing pursuant to Section 21 of the Act.
Purpose of New Regulations
These new regulations are aimed at ensuring that international banking entities operating in Puerto Rico operate with integrity and transparency, and contribute positively to the island’s economy.