US Treasury Officials Meet with Puerto Rican Financial Sector to Discuss Implementation of Financial Sanctions
In a recent meeting held in San Juan, US Treasury officials gathered with government counterparts and commercial banking sector representatives to discuss the implementation of financial sanctions and combating illicit financial activities in Puerto Rico.
Shared Priorities
The meeting was led by Under Secretary for Terrorism and Financial Intelligence Brian Nelson. The attendees included representatives from various departments:
- Office of Foreign Assets Control (OFAC)
- Office of Intelligence and Analysis (OIA)
- Office of Terrorist Financing and Financial Crimes (TFFC)
- Treasury Executive Office for Asset Forfeiture (TEOAF)
- Financial Crimes Enforcement Network (FinCEN)
The collective goal was to combat terrorist financing, money laundering, weapons proliferation, corrupt actors, and other national security threats.
Progress Made
Recent progress has been made in supervising Puerto Rican Financial Entities (PRFEs). FinCEN Director Andrea Gacki convened a FinCEN Exchange in February, bringing together federal law enforcement and federally chartered commercial banks to enhance collaboration and combat illicit financial activity.
Countering Narcotics Trafficking and Public Corruption
The US Treasury is focusing on countering narcotics trafficking from Puerto Rico to the mainland United States. Officials are seeking input on how to identify suspicious transactions associated with these activities and where to enhance partnerships to combat these risks.
Additionally, officials recognize that public corruption is a significant threat to the integrity of the financial sector. They are working to address fraud and public corruption in the sector.
Supervisory Gaps Exploited
Despite progress made, officials note that supervisory gaps are still being exploited by drug traffickers, corrupt actors, sanctions evaders, and others to launder significant amounts of funds through the US financial system.
Enhancing Transparency
The Treasury is working to enhance transparency in the financial sector. This includes:
- Implementation of the Corporate Transparency Act
- Increasing transparency in the US real estate sector and investment advisors
However, officials identified a growing trend of cash transactions for real estate purchases in Puerto Rico, which creates concerns due to limited transparency and reporting.
Prioritized Areas
The meeting aimed to identify priority areas for enhancement, including:
- Limited transparency in Puerto Rico’s cooperitavas sector
- Significant threats to the integrity of the US financial system
Collective Efforts
Combatting these threats requires close partnership with commercial banks on the front lines. The meeting aimed to identify how to enhance collective efforts to mitigate risks and address priority issues in the Puerto Rican financial sector.
By working together, officials can better combat illicit financial activities, countering narcotics trafficking, and public corruption, ultimately strengthening the integrity of the US financial system.