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License your International Financial Entity in Puerto Rico – Part 2

Posted by: Christian Reeves
Category: Puerto Rico

With an Act 273 bank license in Puerto Rico, there is a number of commercial and banking activities that your international financial entity can perform, such as:

– Accept Deposits
– Place deposits with banks outside of Puerto Rico
– Procure service loans
– Refinance letters of credit
– Deal or otherwise trade in money orders
– Engage in any and all banking activities that are allowed in Act 273 in the currency of any country
– Engage in any and all banking activities that are allowed in Act 273 in gold and/or silver
– The ability to trade in securities, notes, debts, drafts, bills of exchange, issued by a firm outside of Puerto Rico
– Acquire or lease personal property
– Buy and sell securities outside of Puerto Rico
– Provide investment advice to persons outside of Puerto Rico
– Provide management services to international financial entities
– Asset management
– Management of hedge funds and high-risk funds
– Administration of trusts
– Establish branches outside of Puerto Rico

One of the most important factors that the committee responsible for reviewing offshore banking applications takes into consideration is the quality and the qualification of the applicants. Every person who is going to be part of the bank should have a clean record and relevant experience.

Before you submit your application you must make clear the types of banking activities that you desire to partake in. This will allow the banking committee to allow the activities that can be performed while at the same time putting a restriction on certain financial actions.

If the banking activity is not listed in your banking license, then you cannot perform it. You have to apply and be approved to act. You will have to present the proper documentation necessary to perform such activity.

There is something you must know before you setup your offshore bank in Puerto Rico. International Financial Entities inside of the country cannot do business with individuals or corporations in Puerto Rico.

Some of the documents that you will need in your application to form an international financial entity or an offshore bank in Puerto Rico include:

– Detailed business plan
– Application for a permit to organize
– Financial reports of each shareholder
– Police clearance report from each shareholder
– Form a Corporation or LLC
– Hire employees
– Build out bank
– Implement core banking software
– Implement hardware system
– Contract with a corresponding banking partner
– File the permit to operate
– Complete an audit with government regulators
– Sworn statement from the President or CEO

The time it takes for the Permit to Organize to be reviewed takes an estimated four months. Once approved it’s up to the owners of the bank to take their time and build the bank based on the amount of time it requires them to get the capital requirements in order.

Once you have your employees (the minimum number of employees is 4), systems, and procedures, you apply for your permit to operate. Once you have this license you can open your doors.

I hope you’ve found this article on Licensing your International Financial Entity in Puerto Rico to be helpful. For more information, or for assistance in starting a bank in Puerto Rico, contact us at info@banklicense.pro