1. Licensed for global business
Zenus Bank operates as an International Financial Entity (IFE) chartered under the laws of the Commonwealth of Puerto Rico pursuant to Act 273 of September 25, 2012, also known as the “International Financial Center Regulatory Act” (PR Laws Ann. tit. 7, § 3081 et seq.). Zenus Bank is regulated and supervised by the Office of the Commissioner of Financial Institutions (OCIF) of Puerto Rico, which serves as its primary prudential regulator.
As an IFE, Zenus Bank is authorized to engage in a range of international banking and financial activities, including deposit-taking, payments, custody, and foreign exchange operations, subject to the limitations and requirements set forth by OCIF and Act 273. Zenus does not conduct business with Puerto Rico residents unless explicitly authorized under applicable law.
For more details please visit the OCIF website, using Zenus Bank’s license number #IFE-061, or company name: Zenus Bank International Inc.
2. About the OCIF
The Office of the Commissioner of Financial Institutions of Puerto Rico is an office of the Department of Treasury of Puerto Rico that supervises and regulates Puerto Rico's financial sector to ensure its safety and soundness, as well as to oversee a strict adherence to all applicable local and federal laws and regulations such as the Bank Secrecy Act, the U.S. Patriot Act, and sanctions by the U.S. Treasury Office of Foreign Asset Control (OFAC), among others.
3. Capital adequacy
The OCIF as a regulatory body is similar in function to the State Banking Departments found in the 50 states. However, being Puerto Rico a commonwealth territory, its functions and enforcement powers are broader. It is empowered to issue banking licenses under Puerto Rico law that are not under direct federal supervision, such as International Banking Entities and International Finance Entities. The OCIF follows examination guidance issued by the Federal Financial Institutions Examination Council (FFIEC), a formal interagency body empowered to prescribe uniform principles for the examination of financial institutions in the U.S., including institutions regulated by the Federal Reserve Board of Governors and the Office of the Comptroller of the Currency (OCC).
4. Are your funds safe?
Zenus operates as a ‘full reserve bank’ — this means, unlike other banks, we do not give your money out to other clients in the form of loans, overdrafts or credit. We see this as the safest form of banking and means the money you hold with us is in our bank, all of the time. Additionally, in the unlikely event that anything should happen to Zenus Bank we hold significant insurance policies to ensure we are always able to provide you access to all of your funds.
FinCEN
FinCEN is a bureau of the U.S. Department of the Treasury. FinCEN's mission is to safeguard the financial system from illicit use, combat money laundering, and promote national security by collecting, analyzing, and disseminating financial intelligence and strategic use of financial authorities.
FinCEN serves as the FIU for the United States and its territories and is one of more than 100 FIUs making up the Egmont Group, an international entity focused on information sharing and cooperation among FIUs. An FIU is a central, national agency responsible for receiving (and, as permitted, requesting), analyzing, and disseminating to competent authorities disclosures of financial information concerning suspected proceeds of crime and potential financing of terrorism, or required by national legislation or regulation to combat money laundering and terrorism financing.
As one of the world's leading FIUs, FinCEN exchanges financial information with FIU counterparts around the world in support of U.S. and foreign financial crime investigations. The basic concept underlying FinCEN's core activities is “follow the money.”
5. Federal oversight and AML compliance
Zenus Bank is classified as a “bank” for purposes of the Bank Secrecy Act (BSA) and associated anti-money laundering (AML) obligations.
Under the final rule published by FinCEN at 85 Fed. Reg. 57129 (Sep. 15, 2020), codified at 31 CFR § 1020.210, institutions such as IFEs that lack a federal functional regulator are nevertheless required to establish and maintain AML programs, including Customer Due Diligence (CDD) procedures and beneficial ownership identification.
As such, FinCEN serves as the primary federal AML regulator for Zenus Bank, with examination support from the Internal Revenue Service (IRS) in coordination with FinCEN.
6. Segregation of funds
Under OCIF Account & Records requirements, Zenus Bank is required to segregate all retail client funds from our own funds. This means we must take steps to ensure that the clients’ money is held in a separate account away from any accounts used to hold money belonging to the firm. The purpose of this separation is to prevent the use of client money by the firm for its own account at all times.
6.1. The best of processes
In line with obligations of our regulations we have detailed business policies and procedures to comply with applicable state and federal laws, the Bank Secrecy Act (BSA), and the USA Patriot Act. We file reports of monetary transactions or suspicious activity, as required by BSA and the USA Patriot Act, when necessary, and have in practice the rules and procedures necessary in the business to comply with the provisions of OFAC. We also aim to comply with Consumer Financial Protection Bureau (CFPB) (Dodd-Frank) rules.
The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. OFAC administers a number of U.S. economic sanctions and embargoes that target geographic regions and governments.
6.2. Electronic Fund Transfer Act (Reg E)
The Electronic Fund Transfer Act establishes the basic rights, liabilities, and responsibilities of consumers who use electronic funds transfer and remittance transfer services of financial institutions that offer these services.
6.3. Gramm Leach Bliley Act (Reg P)
The privacy provisions of GLBA govern the treatment of nonpublic personal information about consumers and require notice to consumers about what information financial institutions collect, how that information may be shared and with whom, and when and how consumers can restrict information sharing. In addition, a second part of the statute requires steps to safeguard customer information.