Puerto Rico Moves to Strengthen International Banking Regulations

San Juan, Puerto Rico - In a move aimed at enhancing the supervision and regulation of international banking entities in Puerto Rico, the island’s government has approved Act No. 110-2013 (S.B. 394), which makes significant changes to the International Banking Center Regulatory Act.

Enhancing Supervision and Regulation

The new law aims to ensure that international banking entities operating in Puerto Rico comply with strict regulations and standards, thereby protecting the local financial system and its customers. The Act also grants the Office of the Commissioner of Financial Institutions additional powers to oversee and regulate these entities.

Key Provisions

• Customer Information Confidentiality: International banking entities are required to maintain confidentiality of customer information, except in cases where disclosure is required by law or judicial order.
• Office of the Commissioner of Financial Institutions’ Powers: The new law grants the Office additional powers to supervise, oversee, and regulate international banking entities, including the authority to issue orders and impose penalties for non-compliance with regulations.

New Reporting Requirements

The Act introduces new reporting requirements for international banking entities, which will enable the Office to better monitor their activities and detect any potential risks or threats to the financial system.

Expected Impact

The new law takes effect immediately after its approval, and it is expected to have a positive impact on the development of Puerto Rico’s international banking industry.