Financial Crime World

Puerto Rico and US Sanctions Agency Sign Historic Memorandum, Strengthening Financial Oversight

The Office of Foreign Assets Control (OFAC) and the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (OCFI) have signed a landmark Memorandum of Understanding (MOU), marking a significant step forward in the administration and enforcement of economic sanctions.

Enhancing Cooperation between Government Agencies

The MOU outlines procedures for the exchange of information, aimed at bolstering cooperation between government agencies. This agreement will enable both OFAC and OCFI to more effectively fulfill their respective roles:

  • Sharing Information: OFAC and OCFI will share information regarding the implementation and compliance with OFAC requirements by banks and other financial organizations under OCFI’s supervision.
  • Identifying Violations: The agreement allows for the sharing of data on possible violations of OFAC sanctions by these institutions, subject to applicable laws.

Positive Impact on Operations

The signing of this MOU is expected to have a positive impact on both agencies’ operations:

  • Enhanced Oversight: OCFI will benefit from enhanced oversight capabilities as it regulates banking and other financial organizations in Puerto Rico.
  • Effective Sanctions Administration: OFAC will be able to facilitate its efforts as the administrator and enforcer of economic sanctions more effectively.

Promoting International Cooperation

This collaborative effort underscores the importance of international cooperation in combating illicit finance and promoting financial stability. The signing of this MOU is a testament to the commitment of both agencies to working together to achieve these goals, ultimately benefiting:

  • The People of Puerto Rico: By strengthening financial oversight and enforcement.
  • The Global Financial Community: Through enhanced cooperation and collaboration.

In conclusion, the signing of this historic Memorandum of Understanding between OFAC and OCFI marks a significant step forward in the administration and enforcement of economic sanctions, demonstrating the importance of international cooperation in promoting financial stability and combating illicit finance.