{"id":54695,"date":"2017-01-21T23:22:02","date_gmt":"2017-01-21T23:22:02","guid":{"rendered":"http:\/\/priba.net\/?page_id=54695"},"modified":"2020-10-29T14:39:49","modified_gmt":"2020-10-29T14:39:49","slug":"regulatory-framework","status":"publish","type":"page","link":"https:\/\/priba.net\/en\/regulatory-framework\/","title":{"rendered":"Regulatory Framework"},"content":{"rendered":"

[vc_row unlock_row_content=”yes” row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”5″ bottom_padding=”3″ overlay_alpha=”50″ gutter_size=”3″ shift_y=”0″ row_name=”Marco Regulatorio”][vc_column column_width_use_pixel=”yes” overlay_alpha=”50″ gutter_size=”3″ medium_width=”0″ shift_x=”0″ shift_y=”0″ z_index=”0″ zoom_width=”0″ zoom_height=”0″ width=”1\/1″ column_width_pixel=”1280″][vc_custom_heading text_weight=”300″ text_transform=”uppercase” sub_lead=”yes”]Regulatory Framework[\/vc_custom_heading][vc_column_text]<\/p>\n

International Banks<\/h2>\n

International Banks in Puerto Rico were established through the passage of the International Banking Center (Law 52) of 1989, which was repealed in 2012 and in that same year the law of the International Financial Center (Law 273) was issued. The first law established International Banking Entities (IBEs) and the second created the legislative framework for International Financial Entities (IFEs).<\/p>\n

The legislature sought to establish Puerto Rico as an international banking center, taking advantage of the strength of local and federal regulation, as the Commonwealth is within the United States\u2019 jurisdiction, and provides a workforce of trained and bilingual support staff,\u00a0 attractive tax incentives,\u00a0 and a hospitable policy regarding inbound investment.<\/p>\n

International Banking Entities (IBE) \/ International Financial Entities (IFE)<\/p>\n

IBEs are depository institutions while IFEs tend to be more specialized institutions in other financial areas such as securities brokerage, financial advisory, etc. among others, that do not necessarily offer deposit-taking services.<\/p>\n

Members of the Association of International Banks of Puerto Rico are all depository institutions, subject to stringent capital requirements and broad operational and compliance controls.<\/p>\n

Regulation<\/h2>\n

The Office of the Commissioner of Financial Institutions of Puerto Rico<\/a> (OCIF) supervises both international, local and mortgage banking in Puerto Rico.<\/p>\n

Puerto Rico is considered the equivalent of a State as defined in the Federal Deposit Insurance Act because, according to the Act, \u201c[t]he term \u2018State\u2019 means [inter alia] any State of the United States, the District of Columbia, any territory of the United States, [or] Puerto Rico.\u201d\u00a0 12 U.S.C. \u00a7 1813(a)(3).\u00a0 Accordingly, International Banks must follow all U.S. federal banking regulations including the below:<\/p>\n