The Office of the Commissioner of Financial Institutions of Puerto Rico ordered the immediate liquidation and dissolution of Banex International Bank and appointed Driven P.S.C. as receiver. The regulator found that Banex met all three statutory tests for insolvency and posed an imminent risk to depositors. A separate, concurrent order revoked its international financial entity license, imposed operational restrictions and initiated proceedings concerning proposed administrative fines. The findings included USD 10.2 million in cash and cash equivalents as of June 30, of which USD 2.9 million was frozen, against USD 46.9 million owed to depositors. More than USD 24 million recorded in an in transit account could not be located or verified, while more than USD 18 million in receivables was owed by Banex’s sole shareholder and entities he controls. The monitor also found that reported capital had been funded with depositors’ money, assets of about USD 10.3 million had been created through reclassifications, regulatory reports contained material inaccuracies and Banex had not complied with a 2025 consent order. Driven has assumed the powers of Banex’s board and management and must secure and liquidate assets, collect related party receivables, investigate the untraceable funds and administer creditor claims. The receiver must notify creditors and depositors within 30 days, after which creditors will generally have 90 days from the initial notice to file claims. Recoveries will be distributed under a priority framework that places depositors behind receivership expenses and secured debts but ahead of general unsecured creditors, shareholders and affiliates.

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