Banex International Bank Ordered Into Liquidation in Puerto Rico

Banex International Bank has been ordered into liquidation by Puerto Rico’s Office of the Commissioner of Financial Institutions, known as OCIF.

The move comes amid concerns about the bank’s financial position and ability to meet depositor obligations.

What happened to Banex International Bank?

Banex’s difficulties included money held at Euro Exchange Securities UK Ltd becoming frozen, disrupting the bank’s access to funds.

Local paper El Nuevo Día said more than US$24 million recorded in an account labelled “In Transit” could not be located, traced or confirmed.

OCIF also reportedly identified over US$18 million in receivables from the bank’s sole shareholder and entities under its control.

These receivables had no repayment date or payment plan. The regulator questioned whether a substantial portion could be recovered.

OCIF concluded that Banex lacked the capital and liquidity needed to sustain its operations and adequately meet its obligations to depositors.

The regulator said the institution still held assets that needed to be preserved and managed to maximize potential recoveries.

Liquidation puts the focus on identifying available assets, establishing liabilities and dealing with creditor claims.

What should account holders consider?

For customers, the central questions are how much can ultimately be recovered and when distributions might become possible.

The announcement itself does not establish a repayment percentage or guarantee that depositors will receive their balances in full.

Account holders should retain their statements, transfer confirmations, account agreements and correspondence. These records can help establish the amount and ownership of a claim when supporting information is requested.

Any assessment of recovery prospects should distinguish between amounts recorded on the bank’s books and assets that can actually be collected.

That distinction matters particularly where missing funds and related-party receivables are involved.

If you hold funds with Banex, or would like to hear my thoughts on this development and offshore banking more broadly, email hello@adamfayed.com and WhatsApp ‪+44-7393-450-837.