Exploring Puerto Rico’s Banking System

Recently, an increasing number of Chinese clients have chosen to open bank accounts in Puerto Rico. The reasons include:

• Puerto Rico is part of the United States, meaning bank accounts here are effectively U.S. accounts.
• Opening accounts is relatively easy.
• Banking regulations are lenient.
• Accounts are not subject to the Common Reporting Standard (CRS), meaning financial account information will not be shared with Chinese tax authorities.

But what exactly is Puerto Rico’s status within the U.S.? How do its banks differ from mainland U.S. banks? And what should one be mindful of? Let’s explore these questions in this series of articles.