Treasury Department Officials Meet with Puerto Rican Financial Institutions to Discuss Implementation of Financial Sanctions

On [date], US Treasury Department officials, including Under Secretary for Terrorism and Financial Intelligence Brian Nelson, met with representatives from Puerto Rico’s financial sector in San Juan, Puerto Rico. The meeting aimed to discuss the implementation of financial sanctions aimed at combating illicit activities.

Discussion Topics

Addressing Remaining Risks Associated with Puerto Rican Financial Entities (PRFEs)

Nelson emphasized the importance of addressing the remaining risks associated with PRFEs, despite significant progress made in recent years. He noted that FinCEN Director Andrea Gacki convened a FinCEN Exchange in Puerto Rico in February to enhance collaboration between federal law enforcement and federally chartered commercial banks on the island.

Countering Narcotics Trafficking and Combating Fraud and Public Corruption

The Treasury Department is focused on countering narcotics trafficking from Puerto Rico to the US mainland, as well as combating fraud and public corruption. Nelson expressed interest in hearing how financial institutions identify suspicious transactions associated with these activities and where partnerships can be strengthened to combat these risks.

Enhancing Transparency and Regulation

The Treasury Department is also working to enhance transparency in the financial sector, including the implementation of the Corporate Transparency Act and increased transparency in the US real estate sector and investment advisors. However, officials have identified a growing trend of cash transactions for real estate purchases in Puerto Rico, which creates concerns due to limited transparency and reporting.

Cooperativism Sector Regulation

Additionally, the limited transparency in Puerto Rico’s growing cooperativism sector has been identified as a priority area for enhanced regulation, supervision, and cooperation to mitigate threats to the integrity of the US financial system. Officials emphasized the need for close partnership with financial institutions on the front lines to combat these threats and identify ways to enhance collective efforts to mitigate risks.

Next Steps

The meeting aimed to discuss priority issues and identify areas where Treasury Department officials can work together with Puerto Rican financial institutions to implement strong anti-money laundering and counter-terrorism financing standards, regulate the financial sector, and combat illicit activities. Officials recognized that more needs to be done to protect the island’s financial sector from abuse by illicit actors and emphasized the importance of close partnership with financial institutions on the front lines.

Key Takeaways

• The Treasury Department is focused on countering narcotics trafficking and combating fraud and public corruption in Puerto Rico.
• Financial institutions are urged to identify suspicious transactions associated with these activities and strengthen partnerships to combat these risks.
• Enhanced transparency and regulation are necessary to mitigate threats to the integrity of the US financial system, particularly in the cooperativism sector.