The largest bank by assets in Latin America has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate in the United States.

Itaú Unibanco Holding, a Brazilian bank with $633.7 billion in assets, plans to operate its U.S. subsidiary through a single branch in Miami, targeting high-net-worth and ultra-high-net-worth individuals with business ties to Latin America. This information comes from an OCC letter dated August 14, which was made public last Friday.

The OCC stated that it will not fully approve the Brazilian bank's U.S. banking charter until it receives approval from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), along with meeting other conditions.

The OCC noted that Itaú's U.S. subsidiary will need at least $507 million in capital at startup and must maintain a Tier 1 leverage ratio of no less than 8% during its first three years of operations.

Itaú has been operating in the United States since 1979. The U.S. bank will be capitalized through the transfer of ownership interests in Itaú's existing Miami private banking subsidiary. Percy Moreira, head of Itaú's international private banking division, has been named as the proposed U.S. chief executive officer.

According to the OCC, the U.S. bank will be distinct from private wealth management operations, offering deposit accounts, mortgage and other loans, credit cards, and trust products.

In a statement to investors last week, Itaú said that establishing operations in the United States "aligns with the company's strategy to further strengthen its ability to serve U.S. clients by expanding banking capabilities and enhancing the offering of products and services in that market."

The OCC agreed to waive residency requirements for four proposed directors of Itaú's U.S. bank, and citizenship requirements were also waived for two of them. However, two-thirds of the bank's board members must still meet citizenship requirements.

The OCC said Itaú has no near-term plans to establish a traditional branch network in the United States. The bank is also working with regulators to develop its Community Reinvestment Act strategy.

Among other restrictions, Itaú must submit a "complete description" of the U.S. subsidiary's information systems and operational architecture, along with related risk assessment and management plans, to the OCC.

The bank must also notify the OCC at least 60 days before any "significant deviation" from its business plan or operations. Additionally, Itaú must obtain a non-objection from the OCC before appointing any new board members or senior executives.

The OCC stated that the conditional approval will lapse if the required capital-raising steps are not completed within 12 months, or if the bank fails to open within 18 months.

Itaú is not the only international bank to make progress on a U.S. banking charter this year. Swiss banking giant UBS received final approval from the OCC in March. Another Brazilian bank, Nubank, also received conditional approval from the OCC in January to establish a U.S. national bank.