Thursday, December 01, 2022

Bancredito ceases operations in Puerto Rico

Bancredito ceases operations in Puerto Rico

After nearly five years of various allegations, the Commissioner of Financial Institutions (OCIF) Natalia Zequeira Diaz on Tuesday announced the voluntary liquidation of Bancredito International Bank & Trust, indicating that the firm would conduct a forensic audit of the transactions Kaufman Rossin conducted. by International Banking Entity (EBI)

Immediately, in a statement sent to this newsletter, Bancredito confirmed its final decision, saying it “has sufficient capital to meet its obligations with depositors, suppliers and employees.”

“The bank will continue to cooperate with banking regulators to meet its legal and regulatory obligations,” the institution’s statement said.

“What began as a routine examination for one of the largest and most mature EBIs operating in Puerto Rico in 2019 has reached its final chapter today,” Zequeira said in a written statement.

According to Zekira Diaz, he indicated that the voluntary liquidation process could take about six months, while he fined the institution $250,000 for terminating the ongoing process.

The liquidation of EBI will be in the hands of Driven Administrative Services LLC, an entity contracted by Bancredito, it was indicated.

“OCIF shall ensure that EBI complies with its obligations to depositors and shall ensure that an independent third party assesses and adjudicates transactions carried out by and through the bank,” it was indicated.

According to the banking regulator, Kaufman Rossin, a firm specializing in compliance with banking regulations, will be in charge of practically reviewing all transactions made by and through Bancredito between October 1, 2016 and December 17, 2020.

The OCIF’s decision comes amid the indictment of a federal grand jury against the institution’s main shareholder, Julio M. Herrera Velutini, former governor Wanda Vazquez Garsed and other defendants for alleged bribery to modify their demands against the regulator. is for the pattern. To remove Jorge Joyner, then director of the EBI and OCIF, from that office and to appoint Victor Rodriguez Bonilla.

However, the OCIF move has nothing to do with the federal investigation. Instead, the determination came after Bancredito did not comply with the creation of a committee aimed at preventing and identifying potential money laundering activities through that institution.

Earlier, Rodriguez Bonilla told new day That he received pressure from a former campaign aide, John Blakeman, to revise OCIF’s regulatory determinations, to which counsel responded negatively and notified federal officials.

With the eventual closure of Bancredito, and for a variety of reasons, in just one year, the OCIF has locked down at least four EBIs or International Financial Institutions (IFEs) that operate on the island and that comply with the regulations. have failed to do. Applies to these institutions dedicated to providing financial intermediation services from Puerto Rico to clients abroad.

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