The approval of the application for an International Financial Entity (IFE) license in Puerto Rico is divided into two stages as per provision in the Act 273: IFE organization permit, IFE licensing to start operations.
The PR Office of the Commissioner of Financial Institutions (OCFI) is the entity responsible for licensing IFEs to conduct specified financial transactions. A licensed IFE entity is authorized to: Engage in traditional banking & financial transactions with non-residents of PR. Request a Tax Grant from the PR Department of Economic Development of Commerce.
1) Articles of Incorporation and by-laws. 2) Rent an office space. 3) Hire at least 4 employees. 4) Authorized capital $5,000,000. Start at capital at least $1,500,000. 5) $300,000 financial guarantees acceptable to OCFI. 6) Application to the OCFI for a permit to organize an IFE. 7) $5,000 non-refundable fee and same annual fee if approved. 8) Personal statements for 10% or more shareholders. 9) Comply with US Bank Secrecy Act, US Patriot Act and Office of Foreign Asset Control (OFAC). 10) After these requirements are completed, the Tax Grant will be authorized for 3 consecutive 15-year period for a total of 45 years.
The application to establish an IFE is divided in two stages and takes up to 180 days to be approved: 1st stage encompasses the organization of the IFE. 2nd stage begins after the permit to organize the IFE is issued.
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