Reported by Jordan Stutts

A Puerto Rico bank seized earlier this year by regulators will pay a $15 million fine in the first enforcement action under a two-year-old federal rule aimed at closing gaps in anti-money-laundering enforcement.

Bancrédito International Bank and Trust Corp. — which was placed in receivership this year by banking regulators in the U.S. territory amid a political bribery scandal — agreed to the fine after failing to properly monitor the flow of international funds through it into the U.S. financial system, according to a consent order issued by the Financial Crimes Enforcement Network.

Bancrédito “willfully violated” the Bank Secrecy Act and its implementing regulations, according to the order, which was made public Friday. The order was signed by Ryan Marín, who became receiver of the bank after it was shut down by the Office of the Commissioner of Financial Institutions of Puerto Rico in January.

Under the order, Bancrédito must surrender its license to operate in the U.S. as an international banking entity and preserve all business records related to BSA compliance.

Bancrédito violated a BSA regulation known as the “gap rule,” which took effect in March 2021 as part of a regulatory effort to force banks that service international financial institutions to comply with anti-money-laundering rules, according to Fincen.

Under the rule, international banking entities in Puerto Rico are now required to maintain anti-money-laundering programs similar to the broader banking industry, Candice Basso, a Fincen spokesperson, said in an emailed statement.

Between 2015 and 2022, Bancrédito inadequately monitored the transfer of funds from accounts linked to a Panamanian bank servicing companies and individuals in Panama and Venezuela, according to the order.

Read full report: https://www.americanbanker.com/news/puerto-rico-bank-linked-to-bribery-scandal-hit-with-15-million-bsa-fine