In observance of Columbus Day and Indigenous Peoples’ Day, our Business Centers will be closed on Monday, October 10, 2022. Please use BanescOnline and BanescoMobile for your financial needs. Por conmemorarse el Día de Cristóbal Colon y el Día de los Pueblos Indígenas, nuestros Centros de Negocios estarán cerrados el lunes 10 de octubre, 2022. Si necesitas acceder a tus cuentas, puedes hacerlo a través de BanescOnline y BanescoMobile. Em comemoração ao Dia de Colombo e ao Dia dos Povos Indígenas, nossos Centros de Negócios estarão fechados na segunda-feira, 10 de outubro de 2022. Use o BanescOnline e o BanescoMobile para suas necessidades financeiras.

Luxury Expenditures Policy

I. Governance Sections

1. Policy Owner

Banesco USA’s (“Bank”) Chief Financial & Risk Officer is the person responsible for the review and evaluation of the Excessive or Luxury Expenditures Policy as well as the operational dministration of this policy and the related processes, procedures, instructions, forms, and/or systems. Depending on the scope of the subject matter, a policy may have more than one policy owner.

2. Governance

On an annual basis, the Board of Directors (BoD) will review and approve the policy and respective expenditure thresholds.

On an annual basis, the ECIP recipient (Banesco USA) will deliver to the Department of the Treasury a certification, executed by two senior executive officers (one of which must be either the ECIP recipient’s principal executive officer or principal financial officer) certifying that (i) the Organization is in compliance with this policy and (ii) the approval of any expenditure requiring the prior approval of any senior executive officer, any executive officer of a substantially similar level of responsibility, or the board of directors (or a committee of such board), was properly obtained with respect to each such expenditure.

3. Scope

Full compliance with this policy is mandatory by all officers and employees of the Bank who are also responsible for its effective implementation. This policy is applicable to all areas and team members of Banesco USA both in South Florida as well as Puerto Rico. Any and all modifications to this policy must be proposed by the Compliance Department at the request of the Chief Financial & Risk Officer and approved by the Board of Directors (BoD).

4. Objective

The purpose of this policy is to establish parameters and internal controls governing the expenditures of Banesco USA (together with its subsidiaries and controlled affiliates, referred to hereafter as the Organization). Expenditures of the Organization should be customary, prudent, consistent with applicable laws and regulations, and reasonably related to the Organization’s business objectives and needs. This policy identifies expenditures that are excessive or luxury expenditures, creates processes that are reasonably designed to eliminate such expenditures, and establishes accountability for compliance. Routine operating expenses, capital expenditures, and other reasonable expenses are not prohibited by this policy.

5. Enforcement

Failure of employees to comply with the Excessive or Luxury Expenditures Policy can result in disciplinary actions, including, but not limited to, immediate termination of employment. The Bank will exercise all rights and remedies to the greatest extent permitted by law or equity, for any failure to comply with this Policy or any related Bank policy or procedures by any agents, employees or independent contractors of joint marketing partners, consultants, advisors, specialists, professionals, experts, service providers, contractors and other intermediaries.

6. Policy Reviews, Approvals, and Documentations

All Bank policies require annual approval by the Board of Directors (BoD) regardless of whether annual policy reviews include any modifications or changes.

For the require review process, policy depository, distribution and training, please see the RSK0004 Policies Governance Policy, which apply to all Bank policies.

7. Policy Access Considerations

Access to this policy shall be granted to:

  • All Bank’s employees;
  • Internal and External Auditors; and
  • Board of Directors (“BoD” or “Board”).

II. Topical Sections

8. Purpose

The purpose of this policy is to establish parameters and internal controls governing the expenditures of Banesco USA (together with its subsidiaries and controlled affiliates, referred to hereafter as the Organization). Expenditures of the Organization should be customary, prudent, consistent with applicable laws and regulations, and reasonably related to the Organization’s business objectives and needs. This policy identifies expenditures that are excessive or luxury expenditures, creates processes that are reasonably designed to eliminate such expenditures, and establishes accountability for compliance. Routine operating expenses, capital expenditures, and other reasonable expenses are not prohibited by this policy.

9. Authority

The Organization has authority to provide compensation and benefits that are reasonable. This policy establishes a prohibition on expenditures that are excessive or luxury expenditures as required by the Department of the Treasury’s Emergency Capital Investment Program regulations (31 CFR Part 35), and as may be required by other statutes and regulations.

10. Responsibility

This policy is the responsibility of the Organization’s board of directors (board). The board has approved this policy and will review compliance with this policy no less frequently than annually, and summary data on excessive or luxury expenditures will be reported to the board as part of the compliance review.

11. Scope

This policy applies to all employees, officers, and directors of the Organization with regard to any expenditure of the Organization. In making any expenditure on behalf of the Organization, employees, officers, and directors should consider whether the expenditure is an excessive or luxury expenditure that is prohibited under this policy.

12. Excessive or Luxury Expenditures

“Excessive or luxury expenditures” means excessive expenditures on any of the following to the extent not reasonable or appropriate expenditures for business development, staff development, reasonable performance incentives, or other similar reasonable measures conducted in the normal course of the Organization’s business operations:

(1) Entertainment or events. This category includes fees, dues, tickets costs related to social, athletic, artistic and dining clubs, activities, celebrations or other events, and similar expenditures. Expenditures for charitable contributions and charitable events are not prohibited under this policy. Entertainment or events expenditures in an amount less than $200,000 per celebration or event, $5,000 per individual per other instance, and $65,000 on an annual aggregate basis per individual, are exempt from this policy. Annual fees or dues are considered as part of the annual aggregate per individual, not as individual instances.

(2) Office and facility renovations. This category includes costs and allowances for office renovation, including expenditures related to furniture, art, office personalization, interior finishing, design and decoration, and similar expenditures. Office and facility renovations expenditures in an amount less than $500,000 per project, $25,000 per instance per individual, and $100,000 on an annual aggregate basis per individual, are exempt from this policy. Office and facility renovations for the corporate relocation to the new headquarters or a newly constructed branch, branch renovation, branch relocation, or facilities expansion are exempt from this policy.

(3) Aviation or other transportation services. This category includes charter fees, tickets, slip or docking fees, vehicle installment payments, reservation and travel agent expenses, and similar expenditures associated with transportation services (e.g., airline, train, rental cars, or vans). Mileage reimbursable according to current Internal Revenue Service mileage rates is exempt from this policy. Transportation services in an amount less than $10,000 per instance per individual, and $50,000 on an annual aggregate basis per individual, are exempt from this policy.

The principal executive officer may establish or delegate to an appropriate executive officer the authority to establish processes for reimbursement of reasonable travel expenditures, which processes must be reviewed by executive management no less frequently than annually.

(4) Tax gross-ups. This category includes any reimbursement of taxes owed with respect to any compensation. This category does not apply to tax equalization agreements for employees subject to tax from a non-U.S. jurisdiction.

(5) Other similar items, activities, or events for which the Organization may reasonably anticipate incurring expenses or reimbursing an employee for incurring expenses. Expenditures related to other items not listed in the preceding categories are exempt from this policy in an amount less than $10,000 per individual per instance, and together with all expenditures permitted under this policy, may not exceed $150,000 on an annual aggregate basis per individual. Tuition reimbursement is considered as part of the annual aggregate per individual, not as individual instances.

For the avoidance of doubt, reasonable capital investments in technology, equipment, and similar items that expand the long-term capability of an ECIP recipient to provide products and services to its customers and community are not excessive or luxury expenditures.

The principal executive officer may establish or delegate to an appropriate executive officer the authority to establish processes for the evaluation and approval of expenditures in the preceding categories that are not luxury or excessive expenditures and that are not otherwise exempt from this policy. These processes must be reviewed by executive management no less frequently than annually, as well as any additional threshold expenditure amounts per item, activity, or event, or a threshold expenditure amount per employee receiving the item or participating in the activity or event under this policy. Such approvals must be reported to the board of directors (which may be in an appropriate summary form) no less frequently than annually.

13. Exceptions or Violations

Any exception or violation of this policy must be promptly reported to the Organization’s (i) principal executive officer (Chief Executive Officer), (ii) officer with primary responsibility for the Organization’s compliance function (Chief BSA & Compliance Officer), or (iii) officer designated with primary responsibility for overseeing the administration, monitoring, and compliance with this policy (Chief Financial & Risk Officer). Exceptions and violations must be reported to the board of directors no less frequently than annually, or more frequently as the nature and severity of violation may warrant. All employees, officers, and directors of the Organization must adhere to this policy and will be held accountable for compliance. Any employee or officer who violates this policy may be subject to disciplinary action up to and including termination of employment.

Any employee or officer that is aware of any circumstance that may indicate a violation of this policy is required to report such circumstance to their supervisor or the Organization’s principal compliance officer (Chief BSA & Compliance Officer) or compliance group (Compliance Department). The Organization prohibits retaliation against any employee or officer for making a good faith report of actual or suspected violations of the Organization’s code of conduct, laws, regulations, or other Organization policies, including this policy. A finding of retaliation against any such employee or officer may result in disciplinary action up to and including termination. Failure to promptly report known violations by others may also be deemed a violation of the Organization’s code of conduct.

Employees and officers may ask questions, raise concerns, or report instances of non-compliance with this policy and/or any of the existing underlying relevant policies by contacting the following: compliancedepartment@banescousa.com.

14. Certification

On an annual basis, the ECIP recipient (Banesco USA) will deliver to the Department of the Treasury a certification, executed by two senior executive officers (one of which must be either the ECIP recipient’s principal executive officer or principal financial officer) certifying that (i) the Organization is in compliance with this policy and (ii) the approval of any expenditure requiring the prior approval of any senior executive officer, any executive officer of a substantially similar level of responsibility, or the board of directors (or a committee of such board), was properly obtained with respect to each such expenditure.

Top

Alert

Time Preference (USA EST Time):
9:00am - 9:30am
9:30am - 10:00am
10:00am - 10:30am
10:30am - 11:00am
11:00am - 11:30am
11:30am - 12:00pm
12:00pm - 12:30pm
12:30pm - 1:00pm
1:00pm - 1:30pm
1:30pm - 2:00pm
2:00pm - 2:30pm
2:30pm - 3:00pm
3:00pm - 3:30pm
3:30pm - 4:00pm
4:00pm - 4:30pm
4:30pm - 5:00pm

We will reply Monday through Friday between 9:00 am and 5:00 pm.