Is Medici Bank Regulated? Understanding the Financial Safeguards for Clients
Jan 5, 2021
Medici Bank International operates under a robust regulatory framework designed to ensure the safety and security of its clients' assets. The bank is licensed and regulated by the Office of the Commissioner of Financial Institutions (OCIF) in Puerto Rico as an International Financial Entity (IFE), holding license number IFE-030.
Regulatory Oversight by OCIF
The OCIF is the governmental body responsible for supervising and regulating Puerto Rico's financial sector, ensuring its safety and soundness, and overseeing strict adherence to applicable laws and regulations.
By operating under OCIF's jurisdiction, Medici Bank adheres to stringent standards that govern its operations, financial practices, and customer interactions.
Compliance Measures
To maintain its license and uphold regulatory standards, Medici Bank implements comprehensive compliance measures, including:
Anti-Money Laundering (AML) Policies: The bank enforces rigorous AML protocols to detect and prevent illicit financial activities, ensuring that all transactions are legitimate and transparent.
Know Your Customer (KYC) Procedures: Medici Bank conducts thorough KYC processes to verify the identities of its clients, thereby mitigating risks associated with fraud and identity theft.
Regular Audits and Reporting: The bank undergoes regular audits and submits detailed reports to OCIF, demonstrating its commitment to transparency and accountability in all financial dealings.
Investor Protections
While Medici Bank is not insured by the Federal Deposit Insurance Corporation (FDIC), it employs several strategies to protect client assets:
Custodial Accounts: Assets held in custodial accounts via the Trust Division of Medici Bank are 100% held for the fiduciary benefit of clients, typically in cash and/or treasuries via the bank's prime brokerage partner.
Asset Segregation: Client funds are kept separate from the bank's operational funds, ensuring that client assets are protected and not used for the bank's own activities.
Partnerships with Insured Institutions: Deposits at Medici Bank are mostly held at partner FDIC-insured banks, or spread across a number of FDIC banks, or held at an SIPC-insured brokerage firm, mostly in cash and treasuries.
By adhering to these regulatory requirements and implementing stringent compliance measures, Medici Bank demonstrates its dedication to providing a secure and trustworthy banking environment for its clients. Clients can have confidence in the bank's commitment to safeguarding their assets and maintaining the highest standards of financial integrity.