Establishing an International Bank in Puerto Rico under 2024 Banking Law
Establishing an International Bank in Puerto Rico under 2024 Banking Law: With the new Puerto Rico banking law, establishing an international bank has become significantly more onerous. The capital requirement has increased to $10 million, and an initial application fee of $50,000 has been introduced to deter frivolous applications and queue jumping. In this context, establishing a bank in Dominica—with a capital requirement of only $1 million and a license obtainable within three months—has become a more attractive option.
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Do not hesitate to contact us at connect@swissfintechpro.com for more information on this matter
That being said, please find below our detailed proposal for establishing an international bank in Puerto Rico. Note that if you are interested in an international bank in Puerto Rico, starting one from scratch is now the only option, as all international banks on the market are currently under escrow.
Proposal for Establishing an International Bank in Puerto Rico
Capital and Startup Requirements
- Minimum Paid-in Capital: $10 million
- Certificate of Deposit (CD): $1 million
- Startup Budget: $550,000 to $1 million
- Typical Burn Rate: $60,000 to $100,000 per month
Overall, to apply for a bank license in Puerto Rico, you need to have $12 million in available cash.
Fees for Incorporation and Licensing
- Total Fee: $390,000
- Payment Structure:
- First Instalment: $195,000 upon executing the agreement
- Second Instalment: $70,000 upon application ready for filing
- Final Instalment: $125,000 upon receipt of the Permit to Organize from OCIF
- Includes:
- Business Plan (5-year financial model, tailored for regulators)
- Internal Compliance Documentation
- Formation of a Puerto Rico banking corporation (post Permit to Organize)
- License negotiation
- Sourcing employees and office space (as requested)
- Legal fees
- Government review fees
- Internal due diligence fees
Additional Costs
- Outside Due Diligence Agency Fees: $7,000 to $10,000 per applicant (for non-US persons, single country)
- Permit to Operate Filing Fee: $50,000
Application Process
- Timeline: 8 to 12 months from the time the application has been filed
Considerations by OCIF
- Financial reputation and standing of applicants
- Record in international business
- Financial performance of affiliated companies (last three years, audited financials preferred)
- Financial net worth of shareholders, associates, or affiliates
- Character and standing of all shareholders/directors
- For Chinese applicants, no connection at all to the Communist Party
Post-Application
- Receive Permit to Organize
- Timeline: Typically, 5 to 6 months for setup, with an option to request a 6-month extension.
- Complete Setup and Apply for Permit to Operate
- Review by OCIF: Systems and personnel in place
- Issuance of Permit to Operate
Ongoing Support
- Negotiation for SWIFT, correspondent banking, MasterCard and Visa acquiring licenses, e-commerce acquiring, etc.
We look forward to assisting you with your international banking venture in Puerto Rico. Please do not hesitate to reach out for further details or to begin the application process. Do not hesitate to contact us at connect@swissfintechpro.com for more information on this matter
