US authorities are taking a strict stance against offshore money laundering, levying a $15 million fine against Puerto Rican lender Bancrédito for its role in processing illicit payments tied to bribery, drug activities, and cryptocurrency scams. The Financial Crimes Enforcement Network (FinCEN) found that Bancrédito violated anti-money laundering regulations and transaction reporting requirements from 2015 to 2022. Before its closure, the bank offered various financial services, including checking accounts, correspondent banking, and trade finance.
FinCEN revealed that Bancrédito enabled Panama-based AllBank Corporation, which closed in 2019, to move over $100 million through a correspondent bank account held with Bancrédito. These transactions involved wire transfers by a Venezuelan national convicted of bribing Argentine government officials, payments related to assets seized by the Drug Enforcement Agency, and transfers linked to the OneCoin cryptocurrency scam.
Andrea Gacki, Director of FinCEN, emphasized that Bancrédito’s actions allowed substantial suspicious transactions through the US, exposing the US financial system to risks. The bank’s fine marks the first enforcement action against a Puerto Rican international banking entity (IBE), signaling a crackdown on money laundering through Puerto Rican IBEs.
Under US law, IBEs can only accept deposits and provide loans to non-resident customers and foreign businesses, not Puerto Rican residents. The US Department of the Treasury identified IBEs as posing elevated money laundering risks due to their offshore banking model.
FinCEN also uncovered suspicious activity involving Bancrédito founder Julio Herrera Velutini, a Venezuelan, Italian citizen, and UK resident. The US Department of Justice accused Herrera Velutini of offering funding to support Puerto Rico’s former governor’s election campaign in exchange for halting investigations into Bancrédito by Puerto Rico’s financial regulator.
By FCCT Editorial Team
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