Puerto Rico’s unique status as a U.S. territory with its own financial regulatory framework creates a compelling environment for both domestic and offshore banking. Its position as a financial bridge between the U.S. and Latin America, coupled with tax incentives and a robust offshore banking sector, has made Puerto Rico a global financial hub for businesses and individuals alike.
As a U.S. territory, Puerto Rico enjoys several benefits associated with U.S. federal financial systems, including access to the U.S. dollar (USD) as its official currency.
However, Puerto Rico also operates under a distinct financial framework. Its regulatory framework allows for the establishment of International Financial Entities (IFEs, such as CB International Bank LLC, Medici Bank, FV Bank and Strategic Bank) and International Banking Entities (IBEs, such as Elit International Bank, Summit International Bank, Atlantico International Bank and Banco Real Internacional) to serve international clients with offshore banking needs without the same restrictions as U.S. mainland banks.
While some banks in Puerto Rico have direct accounts with the Federal Reserve for USD clearing, others rely on correspondent banks in the continental U.S. for payment processing.
Puerto Rico is a prolific offshore banking jurisdiction, with a substantial number of offshore banks (approximately 70) catering to global clients. These banks are regulated separately from the domestic banking sector.
The Office of the Commissioner of Financial Institutions (OCFI) regulates and oversees the domestic banks, IFEs and IBEs. Offshore banks are not insured by the Federal Deposit Insurance Corporation (FDIC), unlike their domestic counterparts, and they must adhere to specialized capital requirements and compliance standards tailored for international banking operations.
Offshore banks primarily serve international businesses and non-resident individuals and companies, with offshore companies forming the majority of their clientele. Their onboarding requirements are relatively straightforward without any major requirements. Financial requirements are not demanding either. Some banks onboard clients even without a minimum initial deposit requirement.
Many banks are designed to meet specific trade and offshore financial needs of residents of specific countries e.g. China and various Latin American countries.
Puerto Rico has been a hub for crypto-friendly banking. However, the number of crypto-friendly banks has decreased in recent years. The decline in crypto-friendly banking options is largely attributed to heightened global regulatory pressures on the cryptocurrency industry. These challenges have led some institutions to distance themselves from crypto clients, prioritizing lower-risk financial sectors instead. Despite this, Puerto Rico remains an attractive destination for crypto enterprises with a few dedicated players like FV Bank continuing to serve the industry.
Unlike the domestic banking sector, which often imposes stringent requirements for non-local entities, offshore banks in Puerto Rico are more accessible to international businesses and individuals. They also offer services to companies in other industries, such as international trade, tourism, agriculture, real estate, technology, manufacturing, professional services, financial services among others.
Puerto Rican offshore banks handle USD accounts and provide a range of services, from trade finance to wealth management.
In contrast to the offshore sector, Puerto Rico's domestic banks are generally more concerned with serving local and regional businesses. Major players like Banco Popular, FirstBank, and Oriental Bank dominate this sector, offering traditional banking services such as deposits, loans, and payment processing.
Personal banking for non-residents in Puerto Rico is primarily offered through offshore banks or International Financial Entities (IFEs). These institutions cater to global clients with services like multi-currency checking and saving accounts, international wire transfers, and wealth management solutions. While non-residents can access these services, the domestic banking sector generally focuses on local clients.
Our services in Puerto Rico specialize in assisting in the opening of corporate and personal bank accounts for non-resident clients, including businesses registered in various offshore jurisdictions.
We work with 5 different banks in Puerto Rico, each bank has different eligibility requirements, types of accounts available and onboarding processes.
We invite you to carefully review each banks requirements and services to better understand if their banking services meet your needs.
Puerto Rico, officially known as the Commonwealth of Puerto Rico, is an archipelago in the Caribbean, covering an area of approximately 9,104 square kilometers. Positioned in the northeastern Caribbean, it is part of the Greater Antilles and is surrounded by the Atlantic Ocean to the north, the Caribbean Sea to the south, the Dominican Republic to the west, and the United States Virgin Islands to the east. San Juan serves as both the capital and the largest city of Puerto Rico. The official languages are Spanish and English.
With a storied history shaped by indigenous Taíno people, Spanish colonization, and subsequent American influence, Puerto Rico has evolved into a unique blend of Caribbean and American cultures. Christopher Columbus arrived on the island during his second voyage in 1493, marking the beginning of Puerto Rico's historical journey. Over the centuries, the island experienced Spanish rule, becoming a crucial outpost in the Spanish Empire. In 1898, Puerto Rico became a territory of the United States as part of the Treaty of Paris following the Spanish-American War.
Today, Puerto Rico operates under a Commonwealth status within the United States. The island has its own local government with a governor as the head of state and a bicameral legislature. While Puerto Ricans are U.S. citizens, the country maintains a degree of autonomy in local governance.
Active on the global stage, Puerto Rico is engaged in various international organizations and maintains diplomatic relations with nations worldwide. While not a sovereign state, it plays a vital role in regional affairs and participates in forums such as the United Nations, the Organization of American States (OAS), and the Caribbean Community (CARICOM).
The economy of Puerto Rico is diverse, encompassing sectors such as manufacturing, tourism, and services. Manufacturing plays a significant role, with pharmaceuticals, electronics, and textiles being notable industries.
Puerto Rico has also positioned itself as an attractive destination for investment and business. The favorable tax environment, along with strategic geographic positioning, has attracted foreign investment and led to the establishment of various international businesses.
In recent years, Puerto Rico has faced economic challenges, including a significant debt crisis and recovery from natural disasters such as Hurricane Maria in 2017. Despite these challenges, the island continues to rebuild and invest in its infrastructure, presenting opportunities for investors interested in sectors like renewable energy, real estate, and technology.
In addition to its economic initiatives, Puerto Rico has introduced programs to encourage investment and development. The island is actively exploring ways to enhance its economic resilience and sustainability.
In conclusion, Puerto Rico, with its complex history and cultural richness, stands as a vibrant territory in the Caribbean. From its economic diversification to its unique political status within the United States, Puerto Rico remains an intriguing destination for business, investment, and cultural exploration.
Our banking support service is not just a mere introduction to the bank. We assist you in filling out the business questionnaires appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application. Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal 'back and forth' and a smooth account opening process.
Bank Account opening requirements are subject to change at the discretion of the bank. There might be additional fees charged by the bank itself. Bank account opening is not guaranteed and is subject to the bank policies and compliance department. There might be restrictions on UBO nationalities, business activities and/or jurisdictions. A refund is available if the account is not successfully opened subject to our terms of service (30% to partly cover service and payment processing and administrative costs apply).