Here is the article in markdown format:
Puerto Rico’s Financial Entities Cleared of Money Laundering Concerns by US Treasury Department
Significant Move by US Treasury Department
In a major development, the US Treasury Department has removed Puerto Rico’s International Banking Entities (IBEs), International Financial Entities (IFEs) and Cooperatives from its list of most significant vulnerabilities and risks related to anti-money laundering and combating the financing of terrorism (AML/CFT). This change is reflected in the department’s latest National Money Laundering Risk Assessment (NMLRA) 2024 report, released this month.
Improved Oversight and Compliance
According to the report, Puerto Rico’s financial entities are no longer included in the section dedicated to Entities not Subject to Comprehensive AML/CFT Requirements. This comes as a result of a rule issued by Treasury’s Financial Crimes Enforcement Network (FinCEN), which made it mandatory for such entities to implement AML compliance programs and subject them to criminal and civil penalties if they fail to do so.
Positive Change
Puerto Rico Commissioner of Financial Institutions Natalia Zequeira has welcomed the move, calling it “a positive change” that reflects a recognition of improved oversight and stricter compliance with applicable laws and regulations.
Strengthening Regulation and Oversight
Zequeira also praised Governor Pedro Pierluisi’s signing into law legislation aimed at strengthening regulation and oversight of IBEs and IFEs. The new laws aim to modernize and strengthen the International Banking Center Law and the International Financial Center Law, making them more efficient, resilient and better equipped to face changes in the market.
Key Measures
- Raising minimum capitalization requirements
- Increasing application fees
- Broadening the scope of investigations
- Increasing bail requirements
- Expanding the Commissioner’s authority to deny licenses
Increased Oversight and Compliance
The legislation is designed to demand an even higher level of compliance with anti-money laundering laws and increase oversight to ensure that international financial entities operate competitively and responsibly.
Significant Step Forward
The removal from the list and the signing into law of these measures is seen as a significant step forward in addressing money laundering concerns and strengthening Puerto Rico’s banking and financial system.