Puerto Rico International Financial Entity

Puerto Rico is a non-incorporated territory of the United States. While all citizens of Puerto Rico are deemed citizens of the United States, the island nation is far from an extension of its considerably larger neighbor to the north. Puerto Rico is a self-governing, democratic nation with, among other cabinets of government, its own independent taxing authority.

Given its location in Caribbean and recent challenges to its economy, the government of Puerto Rico has sought to enact legislation favorable to the development of an offshore financial services center. This includes certain tax benefits, including tax rates as low as four percent on corporate taxes and tax holidays for certain expatriates. Most recently, Puerto Rico passed Act 273 which established international financial entities and a concomitant international banking license.

While not technically offshore, Puerto Rico is an ideal jurisdiction for the establishment of an international offshore bank. Puerto Rico’s International Financial Entity license grants the holder broad banking powers at the competitive tax rate of only four percent of profits as well as easier access to the United States banking system. The licensure, while of recent vintage, provide to be the most popular of 2018 with over twenty-five offshore banks having been established.

Advantages of a Puerto Rico Banking License

In recent years, increasingly complex regulation and an erosion of financial privacy rights in major financial centers such as the United States and European Union have continued to drive the offshore banking industry. Billions of dollars are kept on deposit in offshore banks, even as certain jurisdiction have increased their focus on Anti-Money Laundering controls – which has only enhanced the legitimacy of offshore banking. However, with this industry push towards great transparency has come a tremendous market opportunity to start an offshore bank as the majority of banks have stopped accepting international and/or traditional high-risk banking clients.

Puerto Rico Banking License at a Glance

License International Financial Entity
Time to License  4 to 5 Months
Capital Requirement $550,000
Tax Structure Approx. 4% Percent Tax on Offshore Profits
Economic Substance Yes
Local Director No
AML/KYC Yes
Audit Yes

Resources

 

Description QR code Download
Puerto Rico International Financial Entity – Information Sheet and Fee Schedule.
Puerto Rico OCIF – Application for Permit to Organize

 

Puerto Rico International Financial Entity Cryptocurrency Policy

Puerto Rico Banking License Package

  • Formation of Puerto Rico subsidiary business corporation.

  • Preparation and drafting of shareholder & officer agreements.

  • Preparation and drafting of narrative business plan.

  • Prepare five year financial projections.

  • Preparation and drafting of current financial statements

  • Preparation and drafting of personal financial statements for owners.

  • Identification and draft letters naming principal representative and auditor.

  • Draft and prepare required bank charter and prospectus.

  • Preparation and drafting application with Puerto Rico Commissioner of Financial Institutions

  • Respond and draft responses to OCIF application inquiries.

  • Facilitate and consummate bankcard relationship with Visa & Mastercard.

  • Preparation and drafting of policy agreements and related documents.

  • Facilitate and consummate IBAN/SWIFT and correspondent bank relationship.

  • Provide for required physical presence and local director.

  • Preparation and review of bank deposit, loan and related agreements.

Contact the Puerto Rico International Financial Entity License Experts.

Trust our over fifty year’s combined experience in creating innovative solutions for our clients. Contact the offshore banking license experts at FinLaw to begin the process of obtaining your Puerto Rico International Bank License today. Our knowledgeable and skilled professionals are pleased to answer any of your questions.

Puerto Rico International Financial Entity

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