this comes to the real surprise to me. I always thought if you follow the money stream and are in the money stream you can't become insolvent.
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Euro Pacific bank is a scam
- Thread starter sonato
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- euro pacific bank
If the OFIC has been doing their job keeping an eye on the finances of the company, deposits should be safe. But the company can still be insolvent by taking on more debt and costs/liabilities than it can afford to pay. The bank's deposits have plummeted, which means their overall revenues have dropped. It's probably as easy as costs exceeding revenue, with no turning point in sight.
Unfortunately depositors may lose some money. The bank is facing a fine of $765,000 from Puerto Rico Treasury Department to begin with.
kstp.com
Plus if Euro Pacific Bank has no capital left and if Euro Pacific Bank has to go through liquidation then there is a big problem. The $765,000 fine will still have to be paid and the liquidators will still need to be paid for their work which could run into millions and take several years for 15,000 accounts. This all means the costs will come out of clients deposits as per normal procedure if capital is not sufficient. Peters promise about 100% reserve bank blah blah blah does not mean anything in this situation.
The only saving grace is if Peter Schiff injects more money into the bank to cover the wind down costs or if there is still enough capital to cover the fine and liquidation costs. Any bank recovery will still have the remaining correspondence banks walk away with no prospect of any new ones on horizon appearing. So bank would be useless.
P.S Due to money laundering aka tax concerns any wind down if it happens is gonna require clients providing extensive due diligence docs etc.
Good Luck to customers.
Peter Schiff trying to save Puerto Rico bank under probe
U.S. financial analyst Peter Schiff says he will fight to be able to sell a bank he established in Puerto Rico even though authorities have suspended its operations as part of an investigation. Euro Pacific International Bank obtained a license in 2017 to operate in the U.S. territory and built...
kstp.com
Plus if Euro Pacific Bank has no capital left and if Euro Pacific Bank has to go through liquidation then there is a big problem. The $765,000 fine will still have to be paid and the liquidators will still need to be paid for their work which could run into millions and take several years for 15,000 accounts. This all means the costs will come out of clients deposits as per normal procedure if capital is not sufficient. Peters promise about 100% reserve bank blah blah blah does not mean anything in this situation.
The only saving grace is if Peter Schiff injects more money into the bank to cover the wind down costs or if there is still enough capital to cover the fine and liquidation costs. Any bank recovery will still have the remaining correspondence banks walk away with no prospect of any new ones on horizon appearing. So bank would be useless.
P.S Due to money laundering aka tax concerns any wind down if it happens is gonna require clients providing extensive due diligence docs etc.
Good Luck to customers.
They just updated their site to show that they will be closed for the next two days due to public holidays. That's quite the timing I guess? 
"The bank will be closed for a national holiday, Carnival, on Monday, July 4th and Tuesday, July 5th, 2022. We will resume operations as soon as possible thereafter."
How do they plan to resume asap after holiday with a suspended banking license..lol?
How do they plan to resume asap after holiday with a suspended banking license..lol?
I'm happy that we could help some former clients of this Bank switching the strucure over to Dubai with local Banking.Unfortunately depositors may lose some money. The bank is facing a fine of $765,000 from Puerto Rico Treasury Department to begin with.
Peter Schiff trying to save Puerto Rico bank under probe
U.S. financial analyst Peter Schiff says he will fight to be able to sell a bank he established in Puerto Rico even though authorities have suspended its operations as part of an investigation. Euro Pacific International Bank obtained a license in 2017 to operate in the U.S. territory and built...
Plus if Euro Pacific Bank has no capital left and if Euro Pacific Bank has to go through liquidation then there is a big problem. The $765,000 fine will still have to be paid and the liquidators will still need to be paid for their work which could run into millions and take several years for 15,000 accounts. This all means the costs will come out of clients deposits as per normal procedure if capital is not sufficient. Peters promise about 100% reserve bank blah blah blah does not mean anything in this situation.
The only saving grace is if Peter Schiff injects more money into the bank to cover the wind down costs or if there is still enough capital to cover the fine and liquidation costs. Any bank recovery will still have the remaining correspondence banks walk away with no prospect of any new ones on horizon appearing. So bank would be useless.
P.S Due to money laundering aka tax concerns any wind down if it happens is gonna require clients providing extensive due diligence docs etc.
Good Luck to customers.
They struggled already since COVID in 2020 and we have seen some documents request for transfers OUT of the bank to close the account NO one can imagine - I would even go as far as they asked for stuff over weeks which simply doesn't exist - now afterwards it looks like it was some kind of Ponzi Scheme to stop the money outflows of the bank when it's now mentioned they had "low compliance or sometimes no control at all".
I'm wondering what happens to all the Funds held with there Interactive Brokers Whitelabel Platform and really hope that Interactive Brokers let all the clients transfer out there holdings with them at least.
And still so many Service Providers have this Bank advertised on there website next to setting up a shitty Belize or Seychelles Company in 2022. Well even the ignorant guys get caught at some point from the reality - just sad to see that people new to the offshore world getting burned that way.
Mark my words: next in the raw are all the Offshore Banks in Belize, Nevis and other small islands which already now struggle big times having anything that looks close to a correspondence bank.
They might mean that they will continue not to allow for USD transfers and will be stopping the other currencies as well."The bank will be closed for a national holiday, Carnival, on Monday, July 4th and Tuesday, July 5th, 2022. We will resume operations as soon as possible thereafter."
How do they plan to resume asap after holiday with a suspended banking license..lol?
Amazing new features at EuroPac bank
.
They might mean that they will continue not to allow for USD transfers and will be stopping the other currencies as well.
Amazing new features at EuroPac bank
Their banking license is suspended. That means no banking operation are permitted period. They can do nothing...absolutely zero. The government has already appointed a trustee to liquidate the bank and return funds to depositors. The bank is completely dead as the dodo.
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Zequeira Diaz confirmed the bank, headquartered in the Puerto Rican capital San Juan, was insolvent and that Schiff was the sole remaining shareholder. She said a trustee had been appointed to liquidate the bank’s assets and return all deposits.
----- quote end
‘Long history of non-compliance’: US celebrity’s offshore bank suspended
Euro Pacific Bank has been suspended and some of its Australian customers have been fined for tax evasion following a long-running investigation.
Remember the U.S government had already cut off Fedwire (USD) access for the bank a while back. And anytime you see the U.S IRS Criminal Investigation Chief stood next to Puerto Rico's FI Commissioner (Natalia Diaz) while holding a press conference about the banks suspended license you better believe something major is going down
.It seems they have been conducting an extensive investigation into the bank for a while. It seems they found money launders, a Russian cyber criminal running worlds biggest malware attack they say, someone accused of laundering money for a billion dollar drug trafficking operation and tax evaders amongst others
. There are multiple countries and agencies involved it seems in the investigation.Good luck to the banks remaining customers. Seems as @Fred said and to me it is clear they had lots of outflows occurring and bank was doing everything to stop clients leaving via bureaucracy. That's why I always say it is important to only deal with a bank that publishes its financials and not to deal with ones like Euro Pacific that don't.
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According to the bank’s unaudited financial statements, as of December 31, 2021, Euro Pacific had about $US66 million ($97 million) in cash, $US31 million ($45 million) in precious metals and $US110 million ($161 million) in deposits.
The regulator launched an eight-month investigation into Euro Pacific in October 2020, following allegations clients were using the bank to launder money and evade tax in their home countries.
---- quote end
i was just reading that on twitter and having a bit of a giggle. He has been bashing btc lately so seems highly ironic to me.
So well well well customers can lose money in a 100% reserve non-fractional bank you heard it from the horses mouth . I say it again never trust this guy. Yup Peter Schiff is just confirming what I already said in my above post that customers may lose money....lol.
--- quote
"Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues, rather than allow a sale to a highly qualified buyer promising to inject capital far in excess of regulatory minimums. As a result accounts are frozen and customers may lose money."
---- end quote
P.S So where are all the Euro Pacific Bank fans that were bashing me...lol?
you had your moment of glory but don't overplay this
there were other bold claims of yours that didn't evolve that well
I personally don't remember too many fans of Peter Schiff on the forum...
you had your moment of glory but don't overplay this
there were other bold claims of yours that didn't evolve that well
I personally don't remember too many fans of Peter Schiff on the forum...
Yes I have made other bold claims
. Don't take my moment of glory away here however 
. When everything I said about bank was proved right give me credit....lol.P.S Maybe we should start next on red flags around Tether
.
Deltec Bank
Post of @JohnnyDoe reminded me of this and I didn't want to spam the original thread here. Has anyone used Deltec Bank? Last time I visited their website had no option to create an account with them. This might be the holy grail for us crypto bugs.
www.offshorecorptalk.com
Peter Schiff’s bank closure strengthens Bitcoin case for financial freedom
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Well, tether could process a lot of withdrawals lately without much issues. (about 25%).Yes I have made other bold claims
P.S Maybe we should start next on red flags around Tether
Deltec Bank
Post of @JohnnyDoe reminded me of this and I didn't want to spam the original thread here. Has anyone used Deltec Bank? Last time I visited their website had no option to create an account with them. This might be the holy grail for us crypto bugs.
But that being said, Bitcoin is still the better long term storage.
U.S. financial analyst Peter Schiff told The Associated Press on Friday that he will fight to be able to sell a bank he established in Puerto Rico even though authorities have suspended its operations as part of an investigation.
How's that possible when Financial Institution Commissioner in Puerto Rico is reported to have confirmed the following......lol?
----- quote start
Zequeira Diaz confirmed the bank, headquartered in the Puerto Rican capital San Juan, was insolvent and that Schiff was the sole remaining shareholder. She said a trustee had been appointed to liquidate the bank’s assets and return all deposits.
----- quote end
P.S From Peter's tweet sounds like his name and reputation is garbage in Puerto Rico...lol.
I wouldn't rule it out as a possibility. But what's more likely is that the company is insolvent, deposits are safe, and Peter Schiff is just throwing everything he can at the wall and seeing what sticks.
The way Puerto Rico international banks are regulated is similar to like EU-style EMIs, where they are required by law to hold 100%+ reserves. Calling them banks is arguable a misnomer. Normally, these reserves are ring-fenced for creditors in case the company goes insolvent. I don't know if that's the case in Puerto Rico, though. Haven't read the law in much detail recently.
If creditors are able to dip into deposits, banking regulations (both words used very loosely/generously here) in Puerto Rico are absolutely atrocious — worse than much less reputable jurisdictions. If so, that's the only wake-up call anyone needs to not put any money ever with a Puerto Rico international bank.
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Peter may indeed be just ranting but we know the bank is actually insolvent.
----- quote start
Zequeira Diaz confirmed the bank, headquartered in the Puerto Rican capital San Juan, was insolvent and that Schiff was the sole remaining shareholder. She said a trustee had been appointed to liquidate the bank’s assets and return all deposits.
----- quote end
What is in interesting is the potential $750k fine the bank is facing and where that money will come from and to pay also the liquidators. This is why it is paramount that people only ever deal with banks that publish their financials. The bank has been under water for years and customers had no idea. If there is no capital left the money to pay the $750k fine and the liquidators has to come from somewhere other than thin air.
We just hope all clients assets are actually all there
.The best situation is that Peter agrees with regulators on July 7th to inject enough cash to plug any shortfall or fine and make all parties whole before an orderly wind down that was mentioned will take place. His plan to sell the bank is interesting. Who would want to buy such garbage with such a garbage client base? Any tom dick or harry can apply for a Puerto Rico banking license. They granted like 55 or so banking licenses since 2014 and like 5 last year alone...lol.
Not just banks but investment companies in reputable places like the U.K that claim ring fenced pension and investment assets...lol. The devil is in the detail. I remember having a debate about U.K ring fenced investment companies back in 2018 below. There the liquidator said it would cost up to £100m to return £550m to clients in that one case
. Also if Loyal Bank or Satabank etc liquidation is anything to go by it could take sometime too with EPB.
Potential client losses if UK broker goes bankrupt
I just wanted to share this cautionary tail. Your segregated account is not ring fenced as you would assume if your broker was to collapse and you could end up loosing money. As has been the case in this example below if for example your broker i.e Interactive Brokers UK was to go under and have...
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