The Office of the Commissioner of Financial Institutions of Puerto Rico issued an order appointing Driven, P.S.C. as compliance monitor for Banex International Bank, Inc. for an initial six-month term, effective upon notification. The monitor is tasked with independently verifying Banex's compliance with the Oct. 16, 2025 consent order and assessing the impact of subsequent events on the bank's financial condition, capital plan, liquidity and BSA/AML/OFAC compliance. OCIF described the step as a preventive supervisory measure rather than a takeover of management, with the monitor reporting directly to the commissioner. OCIF linked the appointment to unresolved remediation issues and new supervisory concerns. These included incomplete verification of corrective actions, limited progress on the required look-back review, unexplained discrepancies in regulatory financial reports, doubts about the reliability of accounting records and internal controls, and related-party transactions and receivables totaling USD 11.4 million as of May 31, 2026. OCIF also cited Banex's failure to notify it of a federal subpoena and the intervention by the United Kingdom Financial Conduct Authority in related entity Euro Exchange Securities UK Ltd., which left material Banex funds effectively immobilized, including about USD 24.1 million recorded as in-transit funds at May 31, 2026. Based on Banex's June 5, 2026 trial balance, OCIF said the bank appeared to face a liquidity deficiency of about USD 28.1 million and total capital of about USD 7.5 million. The monitor has authority to access Banex's records, systems, personnel and the third party conducting the look-back review. It must submit an initial report within 60 days, monthly reports thereafter and special reports within 48 hours if it identifies material noncompliance or immediate risk. Banex must preserve records, cooperate fully and pay the monitor's reasonable fees, while OCIF reserved the right to take further action, including assuming management and appointing a receiver, if conditions warrant.
Office of the Commissioner of Financial Institutions of Puerto Rico2026-06-29
Office of the Commissioner of Financial Institutions of Puerto Rico appoints compliance monitor for Banex International Bank over consent order and liquidity concerns
The Office of the Commissioner of Financial Institutions of Puerto Rico appointed Driven, P.S.C. as compliance monitor for Banex International Bank for an initial six-month term. The monitor will verify compliance with Banex's October 2025 consent order and assess liquidity, capital and compliance risks after the freezing of funds linked to Euro Exchange Securities UK Ltd. OCIF cited unresolved remediation, unreliable reporting, related-party exposures and a possible USD 28.1 million liquidity deficiency.