NEW YORK, May 13 (Reuters) - The Federal Reserve Bank of New York on Wednesday defeated an appeal by a Puerto Rican lender whose access to the U.S. central banking system was cut off in a crackdown on lenders with links to Venezuela.

In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan rejected Banco San Juan Internacional's ("BSJI") claim that the Federal Reserve Act entitled it to a "master account," which lets banks access the Fed's electronic payment system.

Lawyers for BSJI did not immediately respond to requests for comment. The New York Fed and its lawyers did not immediately respond to similar requests.

BSJI sued in 2023 after learning that its 11-year-old account would be closed over concerns it was not complying with U.S. sanctions and anti-money laundering rules.

Puerto Rico's banking industry has historically been close to Venezuela. BSJI said its termination was part of a campaign to de-bank "disfavored bank models" that has also ensnared businesses with ties to cryptocurrency and cannabis.

Circuit Judge Denny Chin, however, said regional Federal Reserve banks have discretion to award master accounts, as part of their job to promote stability in the financial system.

"To perform that function, Congress gave Reserve Banks a toolkit of scalpels and a hatchet," Chin wrote.

"Against member banks, Reserve Banks have a myriad of precise and targeted powers -- including supervision, investigation, and enforcement authority -- through which they can surgically manage risk," he continued. "Against nonmember banks, their primary power is the blunt instrument of allowing or disallowing access to the Fed's payment system."

The appeals court also found no "discriminatory animus" to support BSJI's claim it was cut off because the bank was owned by a Venezuelan national.

BSJI's appeal referred to a 2019 Reuters article about the New York Fed cracking down on Puerto Rico's offshore banking industry because of sanctions aimed at ousting Nicolas Maduro, then Venezuela's socialist president.

Maduro is now in a Brooklyn jail awaiting trial on drug trafficking charges. He has pleaded not guilty.