Puerto Rico serves as a hub for various financial institutions, including international banks that possess a Fedwire account. While there are numerous credit unions and local banks in Puerto Rico that also have Fedwire accounts, this article will focus solely on the international banks operating in the region.

Identifying International Banks: To differentiate between local and international banks, it is helpful to consider the bank names. Any financial institution incorporating the terms Coop, Cooperativa, or Federal is likely a local credit union. On the other hand, banks with the word International in their name are classified as international banks. Lastly, banks without these specific indicators, such as Oriental Banks and First Bank, are predominantly local banks.

International Banks with Fedwire Accounts: The following international banks in Puerto Rico possess Fedwire accounts:

1. Stern Bank International
2. Elite International Bank
3. Intecam Banco International
4. Facebank International (not related to Facebook)
5. Banco San Juan International
6. Banplus International Bank
7. Bancaribe International Bank

Among these international banks, only Intecam is a subsidiary of a large bank based in Mexico. The remainder are privately held international banks operated from Puerto Rico. For a current list of banks with Fedwire, click here to go to the Federal Reserve website. 

I note that Puerto Rico is the only jurisdiction in the world that allows you to set up an international bank that may qualify for a Fedwire account and which may join the US banking system. 

What is Fedwire

Fedwire is a real-time gross settlement system in the United States, operated by the Federal Reserve Bank. It allows financial institutions to electronically transfer funds and settle transactions efficiently and securely. This article provides a summary of the Investopedia page on Fedwire.

The Federal Reserve Bank operates the Fedwire Funds Service, which enables the transfer of large-dollar payments among participating banks and other financial institutions. Fedwire operates on a central bank-to-bank basis, meaning that only financial institutions with a Fedwire account can access the system.

Fedwire transactions are settled in real-time, which means that funds are immediately available to the recipient once the transfer is completed. This real-time settlement ensures the fast and efficient movement of funds, reducing the risks associated with delayed transactions.

Financial institutions use Fedwire for a variety of purposes, including transferring funds for large commercial transactions, interbank transfers, government payments, and foreign exchange settlements. The system is widely used due to its reliability, security, and the confidence it instills in participants.

To access the Fedwire system, financial institutions must meet certain eligibility requirements set by the Federal Reserve. They must also maintain reserve balances to cover their payment obligations. Participating institutions can connect to the system through the FedLine Direct or FedLine Command channels.

Fedwire operates during regular business hours on weekdays and has no processing limits, allowing for high-value transactions to be executed promptly. However, it does not operate during weekends, federal holidays, or during certain maintenance periods.

The Fedwire system plays a crucial role in the U.S. financial infrastructure by facilitating the smooth functioning of the payments system. It provides a secure and efficient means of transferring large-dollar payments among financial institutions, helping to maintain the stability and integrity of the financial system.

In conclusion, Fedwire is a real-time gross settlement system operated by the Federal Reserve Bank in the United States. It enables financial institutions to transfer funds securely and efficiently, with immediate availability of funds upon completion of the transaction. The system is widely used for various types of high-value transactions and plays a vital role in the U.S. financial infrastructure.

For more information on setting up an international bank in Puerto Rico, or purchasing an international bank on the island, please contact me at info@banklicense.pro