The shareholder of a Puerto Rican bank embroiled in a corruption scandal has initiated a lawsuit against Driven Administrative Services LLC, the company charged with the liquidation of the bank’s assets. The litigation is related to a $15 million anti-money laundering agreement made with United States authorities.
The bank is Bancredito International Bank & Trust Corp., and the shareholder is Bancredito Bank Holding Corp., headquartered in New York. According to allegations, the asset liquidation entity failed in its responsibility to keep the shareholder informed during settlement discussions with the Financial Crimes Enforcement Network (FinCEN). This US Treasury Department arm is responsible for enforcing anti-money laundering standards.
FinCEN’s settlement announcement did not mention the specifics of how Bancredito International was involved in money laundering activities, or how it failed to adhere to regulations. More details might come to light as the lawsuit progresses.
Larger implications loom as Puerto Rican authorities had earlier closed Bancredito over its connection with a local bribery scandal. This controversy triggered the charge of corruption against the then Governor of the US territory. The current lawsuit and the action by US regulators could be indicative of more far-reaching corruption and money-laundering issues within the Puerto Rican banking space.
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