The Office of the Commissioner of Financial Institutions of Puerto Rico ordered Banex International Bank to cease operations immediately, revoked its international financial entity license and appointed Driven, P.S.C. as receiver to administer and liquidate the institution. The regulator determined that Banex is insolvent and lacks the capital and liquidity needed to operate safely or meet its obligations to depositors. An independent monitor found serious financial, operational, accounting and control deficiencies, including more than USD 24 million recorded in an “In Transit” account that could not be located, traced or confirmed. It also identified more than USD 18 million in receivables from Banex’s sole shareholder and related entities, much of which lacked a repayment plan or reasonable recovery expectation. Banex’s position deteriorated after U.K. authorities intervened in related entity Euro Exchange Securities UK Ltd., leaving some of the bank’s funds frozen or inaccessible. Banex must stop accepting deposits, conducting correspondent banking and processing transfers, withdrawals or other disbursements unless authorized by the receiver. The regulator also proposed USD 534,000 in penalties, which remain subject to administrative proceedings. The cease and desist and license revocation measures remain effective while Banex has an opportunity to challenge them.
2026-09-22Office of the Commissioner of Financial Institutions of Puerto Rico
Office of the Commissioner of Financial Institutions of Puerto Rico halts Banex International Bank operations, revokes its license and appoints a receiver
The Office of the Commissioner of Financial Institutions of Puerto Rico immediately halted Banex International Bank’s operations, revoked its license and appointed a receiver to conduct an orderly liquidation. The regulator found Banex insolvent and unable to meet depositor obligations, citing severe liquidity problems, more than USD 24 million in unverified funds and over USD 18 million in related party receivables. It also proposed USD 534,000 in penalties, subject to administrative proceedings.