Independent Banker - March 2018 - 20

With Interest
because it's part of Grupo IF. " But
a lot of that is driven by macroeconomic
events that are out of our
control, " he says. " So, there can be an
infl ux of capital as quickly as there
can be an outfl ow of capital. " Because
of this, International Finance Bank is
also focused on its domestic market.
" Having a good mix of a domestic
strategy with an international strategy
means that you can really control
your growth, " Cueto adds.
A boutique bank
According to Cueto, International
Finance Bank is a boutique bank
that provides its domestic and
international clientele with specialized
banking solutions and a high
level of customer service. For its
international clientele, he cites the
nonresident alien residential lending
program, which is geared to clients
who want to buy a second home or
commercial real estate asset in the
United States.
" We do have a niche in this market,
where we have a good understanding
of what it is for a nonresident alien
looking to invest in real estate in the
United States and our ability to be
able to provide fi nancing for them, "
he says.
Before coming to International
Finance Bank, Cueto had roles at
Brazilian, Spanish and Puerto Rican
banks. He says his professional
experience with different cultures is
not that unusual in Miami: " A lot of
the bankers here have had exposure
to foreign clientele for an extended
[period of] time. It's just a matter of
fi nding those that fi t well with what
you are trying to do as an organization.
Everything is driven here at this
bank by providing an exceptional
level of customer service. "
Cueto says International Finance
Bank employs seasoned bankers who
understand the subtle differences in
how business is conducted in the different
Latin American countries and
the expectations of clients from each
region. " We have a team that specializes
in dealing with the international
clientele and all the intricacies that
come with that business, " Cueto says.
That includes having a solid
understanding of the bank's various
products, as well as an international
client's expectations, and the etiquette
and negotiating skills to use.
" Each country has its own ... way of
doing business, " Cueto says. " Every
client that's international is a world
unto itself. Understanding how to
provide the adequate level of service
and support, and how to engage
dialogue and how to explain things,
" At the end of the
day, the United
States remains the
safest place to have
money in the world.
That continues to be
a driver. "
-JOSE CUETO,
INTERNATIONAL FINANCE BANK
is a very important piece. I think
understanding the cultural differences
of each of those geographies
is important to having success in
those regions. "
Compliance concerns
Another key component-and
challenge-of doing business with
an international clientele is being
cognizant of the regulatory risks and
burdens, and " having a BSA [Bank
Secrecy Act] and AML [anti-money
laundering] unit that is staffed with a
team that understands international
20 ICBA Independent Banker March 2018
50%
The percentage of
International Finance
Bank's customers who are
from Latin America
account structure-what's required
to open an international account and
all of the due-diligence work that
goes into setting up accounts for
foreigners, " says Cueto. " It's a very
complicated business. "
And it's becoming an expensive
one for banks. " The cost of BSA and
AML compliance has skyrocketed
over the last 10 years, " Cueto says.
For example, the bank needs to staff
its BSA/AML team with professionals
who understand the international
arena, comply with the fi ve pillars
of an effective BSA/AML program
and invest in " the right technology
to be able to create profi les, monitor
activity, generate alerts and be able
to close them. And go through the
investigation process, " Cueto says.
International Finance Bank has
invested in the human and technological
components to comply with
today's strict regulations, whereas
some banks have chosen to exit the
space. Cueto believes being in the
international space gives his bank a
competitive advantage. " In banking,
you look for diversifi cation, " he says.
And international clients are happy
to have the security of a bank looking
out for their best interests. " At the
end of the day, the United States
remains the safest place to have
money in the world, " Cueto says.
" That continues to be a driver. "
Jolene Johnson is a writer
in Minnesota.
Independent Banker - March 2018

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