Under Secretary for Terrorism and Financial Intelligence Brian Nelson to Travel to Puerto Rico
WASHINGTON – Under Secretary for Terrorism and Financial Intelligence (TFI) Brian Nelson will travel to San Juan, Puerto Rico from April 23 – 25 to discuss key illicit finance issues including countering illicit fentanyl and narcotics trafficking, strengthening anti-money laundering and countering the financing of terrorism (AML/CFT) regulations, and promoting awareness among the Puerto Rican business community of beneficial ownership reporting information requirements. This will be the first visit of a Treasury Under Secretary for TFI to the island.
While in Puerto Rico, Under Secretary Nelson will meet with top federal law enforcement partners on counternarcotics trafficking, including convening a roundtable with High Intensity Drug Trafficking Area (HIDTA) members to discuss the illicit fentanyl trade. He will also meet with Governor Pedro Pierluisi, Resident Commissioner Jenniffer González-Colón, and Puerto Rico Commissioner of Financial Institutions Natalia I. Zequeira Díaz as well as leaders from the commercial banking sector.
Under Secretary Nelson’s visit follows FinCEN Director Andrea Gacki’s travel to the island in February, where she hosted the first-ever FinCEN Exchange in Puerto Rico.
Treasury’s 2022 National Money Laundering Risk Assessment identified increased risks in Puerto Rico due to the existence of cooperativas, a type of credit union, and International Banking Entities (IBEs) and International Financial Entity (IFE), a loose term that encompasses banks, broker-dealers, investment firms, and other entities. IBEs, IFEs, and cooperativas – collectively Puerto Rican financial entities, or PRFEs – which are chartered and licensed by territorial authorities, present money laundering vulnerabilities to the U.S. financial system, with IBEs and IFEs being of particular concern because of their offshore banking business model.
In September 2023, FinCEN announced a $15 million civil penalty against the Bancrédito International Bank and Trust Corporation for violations of the Bank Secrecy Act – the first action of its kind. Prior to that, in November 2022, OFAC issued a Finding of Violation to the IFE Nodus International Bank Inc. for violating Venezuela sanctions. Treasury continues to work with Puerto Rican partners to protect the U.S. financial system from these illicit finance risks.
