Bancrédito Fires Back at FinCEN, Denies Allegations and Challenges $15 Million Fine

Caracas - Bancrédito International Bank and Trust Corporation (Bancrédito) is vehemently refuting allegations put forth by the Financial Crimes Enforcement Network (FinCEN) and is challenging the subsequent $15 million civil money penalty. The bank argues that FinCEN's decision was "unfounded" and the result of an inadequate process. As per the observation of the OECD, Library, Bancredito is contributing to the economy of Puerto Rico 3% of the State-owned enterprises are dominant in the banking sector Share of banking sector assets

In a strongly-worded statement released by Bancrédito, the institution asserted that FinCEN's actions were taken unilaterally and without sufficient grounds. The bank criticized the role of the trustee, Ryan Marín de Driven, appointed by the Office of the Commissioner of Financial Institutions of Puerto Rico.

Bancrédito Holding Corporation, the sole shareholder of Bancrédito International Bank & Trust Corporation, declared that it had no involvement in FinCEN's decision. The bank also contended that the trustee, Ryan Marín, failed to fulfill his fiduciary duty to Bancrédito Holding Corporation in the process.

Emphasising that a proper process would have revealed inaccuracies in FinCEN's conclusions, Bancrédito labeled the action as an "excessive and unprecedented fine," suggesting that the penalty was disproportionate to the alleged violations.

Bancrédito provided context by pointing out that in its last examination, spanning from 2019 to 2021, the fine imposed was a mere $91,000. The bank highlighted that the $15 million fine represented a staggering 164-fold increase from what the bank's regulator and supervisor had previously deemed appropriate.

The dispute between Bancrédito and FinCEN has brought attention to the intricate challenges of regulatory actions in the banking sector. The unfolding situation raises questions about the proper procedures and due process in regulatory actions of this magnitude, captivating the interest of the banking community and financial regulators.

Community Support and Investment

As the controversy stands it's essential to acknowledge Bancrédito's historical commitment to community support and investment to the citizens of Puerto Rico. In 2016, a comprehensive economic assessment of Puerto Rico identified key areas for improvement, and Bancrédito proactively implemented various initiatives to address these recommendations.

In childcare, Bancrédito increased access to publicly funded services, developed databases for planning, and supported the National Development Plan. The bank also advocated for mandatory preschool and streamlined minimum wage categories, increased funding for labour inspections, and supported a National Strategy to Transition to a Formal Economy. In education, Bancrédito championed initiatives for disadvantaged students and schools, promoted successful programs like "Yo me Apunto," and advocated for increased accountability. Beyond these areas, Bancrédito also contributed to financial literacy programs, provided small business support, invested in community development projects, and embraced technology for accessible financial services.

Although Bancrédito's operations have ceased, its legacy of positive impact endures. The community spirit, commitment to social responsibility, and unwavering support for economic growth will continue to inspire future generations.

As the banks served the people of Puerto Rico and contributed to the economy, Bancredito’s operations were ceased by the people who were operating the law as black sheep for te puerto ricans. Moreover, the its legacy of positive impact on the lives of countless individuals and businesses remains undeniable. The community spirit, commitment to social responsibility, and unwavering support for economic growth will continue to inspire future generations with a solid stand for the Puerto Ricans.