Last Updated: June 15, 2025 | Next Review: June 15, 2026
Licensing Information
International Financial Entity
Inter.lyBanking is licensed and regulated by the Office of the Commissioner of Financial Institutions (OCIF) in Puerto Rico as an International Financial Entity (License #IFE-061). Our license permits us to offer:
- Deposit-taking services
- Payment services
- Foreign exchange services
- Investment custody services
- Other banking services to non-residents
Our license was granted on March 15, 2020 and is renewed annually. The most recent examination by OCIF was completed in Q1 2025 with no material findings.
Other Jurisdictions
European Union
We operate in the EU under the freedom to provide services framework. Our services comply with PSD2 and other applicable EU financial regulations.
United Kingdom
Registered with the UK Financial Conduct Authority as an overseas financial services provider (FRN: 123456).
Regulatory Restrictions
Inter.lyBanking does not currently accept retail deposits from Puerto Rico residents. Our services are not available to residents of OFAC-sanctioned jurisdictions.
Deposit Protection
As an International Financial Entity, we maintain alternative protections for client funds:
Segregated Accounts
Client funds are held separately from corporate funds in designated accounts with major global banks.
Capital Buffers
We maintain capital reserves exceeding regulatory minimums by 35% (as of Q2 2025).
Liquidity Coverage
Our liquidity coverage ratio stands at 145%, ensuring we can meet withdrawal demands.
These protections are reviewed quarterly by our Risk Committee. Detailed information is available in our annual financial statements.
Capital Requirements
We adhere to Basel III capital adequacy standards with the following ratios as of June 30, 2025:
| Ratio | Our Level | Regulatory Minimum | Status |
|---|---|---|---|
| Common Equity Tier 1 | 14.2% | 4.5% | Above Requirement |
| Tier 1 Capital | 15.8% | 6.0% | Above Requirement |
| Total Capital | 18.3% | 8.0% | Above Requirement |
Our capital position is reviewed monthly by the Board Risk Committee. Stress testing is conducted semi-annually under various economic scenarios.
Compliance Framework
Our compliance program includes the following key elements:
Dedicated Compliance Team
Over 100 compliance professionals across 3 regional hubs
Regulatory Monitoring
Tracking 150+ regulatory changes monthly across jurisdictions
Independent Audits
Annual audits by Big 4 accounting firms
Regulatory Examinations
Recent regulatory examinations include:
- OCIF AML Examination (March 2025) - No material findings
- EU Banking Authority Review (November 2024) - 2 minor observations
- Internal Compliance Audit (January 2025) - 98% adherence score
Conflicts of Interest
We maintain policies to identify, manage, and disclose potential conflicts of interest:
Personal Account Trading
Employees must pre-clear personal securities transactions and are prohibited from trading contrary to client positions.
Gifts & Entertainment
Strict limits on gifts ($100 maximum value) and business entertainment ($250 per event).
Disclosure of Conflicts
Where conflicts cannot be avoided, we disclose them to affected clients in writing. In 2024, we disclosed 12 potential conflicts to clients.
Complaint Handling
We maintain transparent procedures for handling client complaints:
Submission
Complaints can be submitted via email, phone, or written letter. All complaints are acknowledged within 2 business days.
Investigation
Complaints are investigated by our Client Relations team, typically resolved within 15 business days.
Escalation
Unresolved complaints may be escalated to regulatory authorities in the client's jurisdiction.
Risk Factors
Clients should be aware of these key risks when banking with Inter.lyBanking:
Country Risk
Our operations may be affected by political, economic, or regulatory changes in Puerto Rico or other jurisdictions where we operate.
Currency Risk
Accounts held in foreign currencies are subject to exchange rate fluctuations that may affect their value.
Cybersecurity Risk
Despite robust protections, digital banking systems remain vulnerable to potential cyber attacks.
Note: These risk factors are not exhaustive. Clients should review all account documentation carefully and consider seeking independent financial advice.