Choice Bank of Belize faces liquidity problems

[Axe]

Omg freelancer..give us a f*****g break!!!!
We had no choice, we are being paid by a company that works with them.You are out of this topic. We re doing nithing illegal, i pay my taxes and all.
Go bip youself, we are under pressure here and we don t need someone.like you telling us why we kept money there.
Omg there are some stupid people in this world.

 

[Informer]

This is a press release issued just now describing the process up to 27th of June


Press Release

For Immediate Release

Choice Bank Limited

(A licensee under the International Banking Act, Chapter 267, Laws of Belize)

June 27th, 2018



The Bank is a Belize international business company duly licensed under the International Banking Act (“IBA”) to conduct international banking business in Belize and is regulated directly thereunder by the Central Bank of Belize (“Central Bank”) and ultimately by the Minister responsible for banks and banking (Minister of Finance).



The Bank has recently experienced a liquidity event which has caused it to restrict client payments for a period of time. Subject to Central Bank of Belize and Minister of Finance approval for certain actions, which has not been forthcoming, the Bank intends to re-commence customer payment operations on about Junes 30th, 2018.



As of the end of December, 2017, as indicated in the Bank’s audited financial statements and further evidenced in the quarterly financial statements published by the Central Bank of Belize, the Bank held total deposit liabilities of US$203mn with cash due from banks in the sum of US$136mn.



Further, as of the end of December 2017, the Bank held total equity of US$26mn, exceeding the minimum statutory required capital of US$3mn by US$23mn and maintained a risk weighted capital adequacy ratio of 12.4%, in excess of the legal requirement of 10%.



In compliance with Central Bank of Belize requirements that the Bank shall maintain a minimum aggregate holding of statutory approved liquid assets with a maturity of no more than one year, which shall be at least twenty four percent (24%) of its total deposit liabilities, the Bank met and exceeded its statutory approved liquid asset requirement of US$48mn by US$91mn as indicated in the December 2017 Quarterly Financials, with an overall approved liquid asset ratio of approximately 68%.



One of the primary areas of the Bank’s international banking business, is the operation and management of an international payment system through the issuance and management of branded pre-paid (pre-funded) payment cards, which system is used internationally (primarily in Europe and North America) to effect payment of salaries and remuneration for employees and self-employed contractors, including employees/contractors in the adult entertainment sector.



In connection therewith, on June 3, 2008, the Bank entered into a license agreement with Mastercard International Inc. which permitted the Bank to issue Mastercard branded pre-paid payment cards internationally.



As of the end of December 2017, the Bank had over 305,000 active Mastercard branded pre-paid card holders with accumulated balances of approximately US$91.9M



At the beginning of this year approximately 71% of the Bank’s deposits were comprised of deposits relating to the Mastercard prepaid card business, of which 41% of its deposits consisted of deposits from clients engaged in the Adult Business.



Towards the end of 2017 and in the early part of 2018, Mastercard indicated to the Bank that it may restrict the Bank from issuing Mastercard branded pre-paid payment cards (“Cards”) in jurisdictions that the Bank had hitherto been permitted to issue to, including North America and Europe (collectively “the Restricted Jurisdictions”). Funds deposited with the Bank to fund/load the Bank’s prepaid cards business issued in the Restricted Jurisdictions represented more than 90% of the Bank’s total prepaid card deposits and corresponding assets.



On January 17, 2018, the Central Bank issued a directive to the Bank requiring it to take steps to exit from the “adult” space in the prepaid card business by the end of 2018. The Bank’s Adult business had operated without any compliance or related issues since inception, the rationale for the Central Bank directive is unknown by the Bank. As the Bank shares no correspondent Banks with any other Belizean Banks the Adult business was not a threat to any other Bank within the jurisdiction.



In February 2018, Mastercard conducted a review of the Bank’s Mastercard-branded activities and in pursuance of the Adult Space Directive, the Bank communicated such directive to Mastercard as well as other relevant parties. In furtherance of this review, by letter dated March 15, 2018, despite the Bank’s efforts to negotiate extensions of deadlines, Mastercard determined that the Bank would no longer be permitted to issue or maintain Cards in the Restricted Jurisdictions, that it must not newly issue or reissue any Cards and that as of the end of June, 2018, it must cease reloads of Cards. MasterCard change of rules applying to Restricted Jurisdictions is not specific to Choice Bank.



During the period of the first quarter of 2018, particularly in the months of February and March, 2018, notwithstanding that there had been no public disclosure of Mastercard’s contemplations, the Bank experienced abnormally large cumulative withdrawals of deposits from customers primarily in the pre-paid card section of the Bank’s business signaling in the view of the Bank the onset of a developing run on the Bank. In February, 2018, deposits fell by over 8% or US$17mn while in March, 2018 deposits fell a further US$19mn or over 10% of total deposit liabilities.



The Required Action and the Bank’s compliance with its obligation to notify customers thereunder further exacerbated the cash outflow.



While the Bank continued to maintain its prudential ratios, including meeting and exceeding minimum statutory capital adequacy ratios, capital requirements and approved liquid asset requirements, in early April, 2018, based on internal financial projections, the Bank held the view that without intervention of the Central Bank of Belize as a statutory administrator, the Bank would shortly run out of available cash to meet the withdrawal demands of its depositors given its mismatch between very short-term liquidity demands of less than 30 days due to the run on the Bank and its statutory approved liquid assets (among other assets) with varying maturities, many of which ranged between three and six months.

 

[Informer]

By letter dated and delivered on Sunday, April 8, 2018, upon a resolution of its directors, the Bank voluntarily requested the Central Bank to appoint a Statutory Administrator and to seek relief from the Central Bank in the form an emergency infusion of funds with a view to enable an orderly liquidation process to protect and conserve assets of the Bank, and to manage cashflows in an orderly fashion in the best interest of depositors, cardholders and other creditors of the Bank so that depositors and creditors of the Bank could be kept whole while working through the short-term liquidity challenges the Bank faced.





From conversations held with members of the Central Bank, it became clear that the Central Bank would not be making an immediate appointment as requested or responding to our letter with the urgency that the situation demanded. Consequently, the Bank had to resort to self-help and on April 10, 2018, pursuant to an expansion of the Bank’s Funds Availability Policy which is referenced in its Depository Agreement General Terms and Conditions, the Bank gave notice to account holders that it had taken a decision to temporarily suspend withdrawals from deposit accounts so that it could better manage its liquidity position.


On April 12, 2018, representatives of the Bank attended a meeting with members of the Central Bank where the Central Bank gave no indication that it would appoint a Statutory Administrator but did indicate that it would place the Bank under enhanced supervision and require additional reporting on a timely basis. As a result the Bank, with a view to engage specialty assistance, appointed Quadrant Management, Inc. (“Quadrant”) to act as its restructuring advisor. Quadrant is a US based investment management firm with extensive experience in restructuring various types of companies.





The Bank has kept the Central Bank fully informed of all measures it has taken and intends to take to manage its short-term liquidity position and repay depositors.





As at April 9, 2018 the Bank still maintained more than 305,000 prepaid cards outstanding which made up approximately US$65 million of the Bank’s total outstanding liabilities of US$163 million. On the 8th of April, 2018, the Bank made a decision, that until a statutory administrator was appointed, it would not suspend withdrawals by prepaid cardholders since these accounts consist of very small deposits which cardholders require for their basic needs such as food and housing. In pursuance of the Required Action, cardholders have been notified that the card accounts will be closed on June 30, 2018 and that funds must be withdrawn by then. The Bank expects that the Prepaid Card Liabilities will have been fully repaid by end of June 2018 from the proceeds of monetized assets held by the Bank and through the release of collateral held by Mastercard.





tely US$14 million with a Puerto Rican International Bank (“PR Banc”). PR Banc terminated its correspondent banking relationship with the Bank however immediately after being contacted by the Central Bank of Belize, inexplicably has chosen to withhold payment of the said US$14million to the Bank. The Bank has initiated legal process against PR Banc with a view to recover the said sum forthwith and has also reached out to the regulatory authorities in Puerto Rico and the Central Bank (which thus far has not be received) for assistance in recovery of the said funds.





If funds from PR Banc are returned, all depositors will have funds available up to US$100,000. This will result in all except 125 accounts having access to 100% of their funds. Thus, within the next several weeks the Bank will place in escrow Belize dollars to satisfy all the remaining claims if so ordered.







​

 

[Informer]

On May 8, 2018 the Prime Minister and Minister of Finance wrote a letter to the Bank issuing certain directives pursuant to Section 27(1)(e) of the International Banking Act (“the Preventative Measures”) which require, among other matters, that the Bank provide to the CBB:

· proof of its long-term investments including daily changes in their value;

· daily statements and supporting documentation of all accounts held at financial institutions;

· details and proof of all other assets and liabilities;

· accelerate the raising of funds necessary to meet its existing obligations to all depositors;

· cease all related party transactions with the exception of Quadrant which the Bank does not agree is a relat4ed party under the International Bank Act;

· cease entering into any new contractual arrangements.

Essentially these requirements make it impossible for the Bank to conduct any business without Central Bank or Minister of Finance approval, which has not been forthcoming to accelerate repayment of depositors.

Furthermore, on June 7, 2018 the Central Bank issued a press release confirming that the Bank is under enhanced supervision and that certain preventative measures were implemented on May 8, 2018.



Apart therefrom, it should be noted that one of the Preventative Measures requires the Bank to accelerate the raising of funds. In order to raise funds to pay out depositors the Bank must liquidate its assets. The grant of an injunction restricting the Bank from liquidating its assets would be contrary to the directives issued by the Bank’s regulators and contrary to the interests of depositors.



As the Bank has sought to liquidate its assets with a view to fully satisfying its depositor and other creditor liabilities, the Bank has at all times liquidated assets for valuable consideration at the best price reasonably obtainable in the circumstances in the best interest of depositors, creditors and stakeholders as a whole.



Over the five month period from December 31, 2017 ended May 31, 2018, the Bank has reduced its total deposit and other liabilities by US$119 million from US$214mn to US$95mn, while its total assets have reduced by US$123 million corresponding to a total loss of a little under $4 million.





On June 14, 2018 representatives of the Bank met with representatives of the Central Bank and thereafter with the Prime Minister and made proposals for the settlement and payment of the Bank’s obligations to depositors and to seek approval from the Central Bank for the entry by the Bank into the Second Tranche. Such approval has not yet been granted and the Bank has no indication that it may be.



Furthermore, on June 20, 2018 the Prime Minister and Minister of Finance wrote a letter to the Bank issuing certain directives pursuant to Section 27(1)(e) of the International Banking Act (“the New Preventative Measures”) which are to replace the Preventative Measures issued in his letter of May 8, 2018. The New Preventative Measures require, among other matters, that the Bank:



a) Cease directly or indirectly disposing, assigning, charging, pledging, transferring, distribution or dissipating any asset or liability of Choice Bank or any subsidiary of Choice Bank, whether such asset or liability is located or held within or outside of Belize, without the prior written approval of the Central Bank of Belize;



b) cease directly or indirectly entering into, continuing or acting in furtherance of any contract or arrangement or taking any other action related to the disposal, assignment, charging, pledging, dissipation, distribution or transfer of any asset or liability of Choice Bank, whether such asset or liability is located or held within or outside of Belize, without the prior written approval of the Central Bank;



c) cease accepting new deposits and entering into any new contractual arrangements.



Thus, despite the Bank not having been put in statutory administration, the Central Bank and the Minister of Finance have in effect through the New Preventative Measures sought to take control of the Bank and the representatives of the Central Bank are acting as de facto directors of the Bank.



The Bank has been advised by the Bank’s Attorneys-at-law and verily believe that the New Preventative Measures restrict the Bank from even negotiating possible settlements of these Claims without the approval of the Central Bank.



The Bank further been advised by the Bank’s Attorneys-at-law and verily believe that the New Preventative Measures which have purportedly been issued by the Minister of Finance under Section 27(1)(e) of the International Banking Act and the conduct of the Central Bank in seeking to take control of the Bank without actually putting it into statutory administration are ultra vires their authority and unlawful.



As such, it is desirable that the Central Bank and the Minister of Finance be added as Interested Parties to all Claims the Bank faces to enable the Bank to be able to properly defend these Claims.







At the same time, the Bank has continued to maintain and comply with the Central Bank’s prudential standards including approved liquid assets of US$25.4 million or 28% of total deposit liabilities in excess of the legally required 24% as aforesaid..



Further the Bank denies claims that the Bank is attempting to ‘de-nude itself in the jurisdiction of Belize by the movement of its assets or deposits to another jurisdiction. This has not occurred.



The Bank remains committed to its business in Belize and subject to Central Bank and Minister of Finance approvals intends to reopen for business about June 30th.

 

[Informer]

Had to place it in 3 parts, too long but a very interesting and revealing story...

 

[Caporaso and Partners]

(English version will be published in the next hours)

Carta abierta del Lic. Giovanni Caporaso a la Ilma. Gobernadora del Banco Central de Belice, Joy Grant

Ilustrísima señora Joy Grant,
Gobernadora del Banco Central de Belice
le escribe su humilde servidor Giovanni Caporaso Gottlieb, abogado en ejercicio en Panamá con 30 años de experiencia en banca offshore, representante de un número importante de cuentahabientes de Choice Bank, para decirle, con todo respeto, que su comunicado en YouTube del 29 de junio de 2018, es insultante y ridículo.
Usted y el Banco Central de Belice NO HAN HECHO NADA durante los seis (6) meses de crisis del banco debida a factores externos, o sea a nuevas regulaciones de MasterCard Internacional.
En varias ocasiones, yo, en representación de mis clientes y muchos cuentahabientes hemos escrito al Banco Central para solicitar que, según el mandato de la ley de Belice, interviniera para salvaguardar nuestros intereses.
Usted y el Banco Central NO SE HAN DIGNADO DE RESPONDER, ni han actuado según lo que establece la ley de Belice.
Ahora, Usted continúa faltándonos el respeto, no nos contesta, nombra un Liquidador a los dos días que el Banco Choice nos comunica que está listo para aprobar retiros de las cuentas. Usted y el Liquidador, a una semana de distancia, no han emitido un comunicado especificando como los cuentahabientes van a recuperar su dinero.
Sí Usted y el Banco Central tienen pensado de gastar nuestro dinero poniendo en marcha una maquina burocrática con empleados inexpertos que cobraran altos salarios con nuestro dinero, sepa, señora Gobernadora Joy Grant, que ¡NO SE LO VAMOS A PERMITIR!
Sí para el próximo lunes no nos presenta un plan detallado vamos a recurrir a todas las instancias internacionales para que paralicen y pongan bajo investigación el sistema bancario de Belice.
Se despide atentamente su servidor,
Giovanni Caporaso Gottlieb
Abogado en Ejercicio

Caporaso & Paterns Law Office – Panamá
Avenida Samuel Lewis, Torre Omega, suite 5D, Zona Bancaria, Panamá, República de Panamá
Teléfonos:
+507 8327893,
+507 8339512,
Email:
[email protected]

 

[Caporaso and Partners]

(English version will be published in the next hours)

Carta abierta del Lic. Giovanni Caporaso a la Ilmo. Primer Ministro de Belice, Dean Barrow

Ilmo. Señor Dean Barrow
Primer Ministro de Belice,
le escribe su humilde servidor Giovanni Caporaso Gottlieb, abogado en ejercicio en Panamá, con 30 años de experiencia en banca offshore, representante de un número importante de cuentahabientes de Choice Bank, para solicitarle la inmediata destitución de la gobernadora del Banco Central de Belice, señora Joy Grant, por no haber cumplido con los mandatos que la ley de Belice impone al Banco Central en relación a la crisis del Banco Choice.
Desde que el Banco Choice comunicó a los cuentahabientes que se encontraba en falta de liquidez, yo, en representación de un gran número de cuentahabientes y otros a titulo personal hemos solicitado la intervención del Banco Central, que en los más de seis (6) meses no ha dado respuesta alguna y ahora, sorpresivamente, a los dos días que el Banco Choice nos comunicara que está listo para aprobar retiros de las cuentas, ha cancelado la licencia del Banco y lo ha puesto en liquidación.
Vista la ineptitud demostrada en este lapso de tiempo por la Señora Gobernadora, estamos preocupados que se instaure una maquina burocrática de liquidación, con nombramiento de personal inexperto, y/o “amigos de los amigos” que se vayan comiendo nuestro dinero en un proceso, cuyo plan no se ha dado a conocer y que aparece más como una actuación a lo Poncio Pilato (lavándose las manos).
Consideramos que aparte de nuestro dinero, esta en juego el nombre y reputación de Belice y de su Centro Financiero.
No es nuestro deseo atacar a Belice en los Foros Monetarios Internacionales, por lo cual le solicitamos humildemente su inmediata intervención, la destitución inmediata de la Gobernadora Joy Grant y permitir al Banco Choice de liquidar ordenadamente sus cuentas bajo la supervisión de una nueva cúpula del Banco Central, visto que los actuales dirigentes se han demostrado ineficientes y no han cumplido con las leyes de Belice.
Esperamos su pronta respuesta y le rogamos de no obligarnos a desencadenar una campaña internacional contra Belice.
Respetuosamente se despide,
Giovanni Caporaso Gottlieb
Abogado en Ejercicio

Caporaso & Paterns Law Office – Panamá
Avenida Samuel Lewis, Torre Omega, suite 5D, Zona Bancaria, Panamá, República de Panamá
Teléfonos:
+507 8327893,
+507 8339512,
Email:
[email protected]

 

[Axe]

Can you provide us the email adress you used for sending this? Would like to send him a letter as well .

 

[negon]

(English version will be published in the next hours)

Carta abierta del Lic. Giovanni Caporaso a la Ilmo. Primer Ministro de Belice, Dean Barrow

Ilmo. Señor Dean Barrow
Primer Ministro de Belice,
le escribe su humilde servidor Giovanni Caporaso Gottlieb, abogado en ejercicio en Panamá, con 30 años de experiencia en banca offshore, representante de un número importante de cuentahabientes de Choice Bank, para solicitarle la inmediata destitución de la gobernadora del Banco Central de Belice, señora Joy Grant, por no haber cumplido con los mandatos que la ley de Belice impone al Banco Central en relación a la crisis del Banco Choice.
Desde que el Banco Choice comunicó a los cuentahabientes que se encontraba en falta de liquidez, yo, en representación de un gran número de cuentahabientes y otros a titulo personal hemos solicitado la intervención del Banco Central, que en los más de seis (6) meses no ha dado respuesta alguna y ahora, sorpresivamente, a los dos días que el Banco Choice nos comunicara que está listo para aprobar retiros de las cuentas, ha cancelado la licencia del Banco y lo ha puesto en liquidación.
Vista la ineptitud demostrada en este lapso de tiempo por la Señora Gobernadora, estamos preocupados que se instaure una maquina burocrática de liquidación, con nombramiento de personal inexperto, y/o “amigos de los amigos” que se vayan comiendo nuestro dinero en un proceso, cuyo plan no se ha dado a conocer y que aparece más como una actuación a lo Poncio Pilato (lavándose las manos).
Consideramos que aparte de nuestro dinero, esta en juego el nombre y reputación de Belice y de su Centro Financiero.
No es nuestro deseo atacar a Belice en los Foros Monetarios Internacionales, por lo cual le solicitamos humildemente su inmediata intervención, la destitución inmediata de la Gobernadora Joy Grant y permitir al Banco Choice de liquidar ordenadamente sus cuentas bajo la supervisión de una nueva cúpula del Banco Central, visto que los actuales dirigentes se han demostrado ineficientes y no han cumplido con las leyes de Belice.
Esperamos su pronta respuesta y le rogamos de no obligarnos a desencadenar una campaña internacional contra Belice.
Respetuosamente se despide,
Giovanni Caporaso Gottlieb
Abogado en Ejercicio

Caporaso & Paterns Law Office – Panamá
Avenida Samuel Lewis, Torre Omega, suite 5D, Zona Bancaria, Panamá, República de Panamá
Teléfonos:
+507 8327893,
+507 8339512,
Email:
[email protected]

still no English version... post reported has no relevance here for peple not from Spain!

 

[Caporaso and Partners]

OPEN LETTER TO MR DEAN BARROW, PRIME MINISTER OF BELIZE

Distinguished Mr. Dean Barrow

First Minister of Belize,

This is your humble servant, Giovanni Caporaso Gottlieb, practicing attorney in Panama, with 30 years of experience in offshore banking; I’m writing to you on behalf of a large number of Choice Bank account holders, to request the immediate dismissal of the Governor of the Central Bank of Belize, Ms. Joy Grant, for not having complied with the mandates that the laws of Belize impose on the Central Bank in relation to the Choice Bank crisis.

Since the Choice Bank communicated to its account holders that it had encountered a lack of cash flow, I, as the representative of a large number of account holders and others, in a personal capacity, have requested the intervention of the Central Bank which has given no answer in more than six (6) months and now, suddely, in the two two days since the Choice Bank anounced that it was ready to appove withdrawals from the accounts, it has canceled the Bank’s license and has put it in liquidation.

Seeing the ineptitude shown by Madame Goveror during this lapse of time, we’re worried that this could establish a bureaucratic liquidation machine, by naming inexperienced personnel and/or “friends of friends” that might eat up our money in the process, whose plan is unknown and which appears more like a performance worthy of Pontius Pilate (washing his hands).

We feel that, apart from our money, the name and reputation of Belize and its Financial Center are on the line.

We don’t want to attack Belize in the International Monetary Forum, which is why we humbly request your immediate intervention, the immediate dismissal of governor Joyce grant and to allow the Choice Bank to liquidate their acounts in an orderly manner, under the supervision of a new leadership of the Central Bank, since the current leaders have been shown as being inefficient and haven’t complied with the laws of Belize.

We await you quick response and we beg you to not oblige us to unleash an international campaign against Belize.

Respectfully, sincerely yours,

Giovanni Caporaso Gottlieb

Practicing Attorney

 

[Caporaso and Partners]

Distinguished Ms. Joy Grant

Governor of the Central Bank of Belize

This is your humble servant, Giovanni Caporaso Gottlieb, practicing attorney in Panama, with 30 years of experience in offshore banking; I’m writing to you on behalf of a large number of Choice Bank account holders, to tell you, with all due respect, that your June 29, 2018 communication on YouTube is offensive and ridiculous.

You and the Central Bank of Belize DID NOTHING during the six (6) months of the Choice Bank’s crisis, due to external factors which the new International MasterCard regulations.

On several occasions, I, on behalf of my clients, and many other account holders have written to the Central Bank to request, following the mandates of the law of Belize, its intervention for safeguarding our interests.

You and the Central Bank DIDN’T EVEN DEIGN TO ANSWER, nor have you acted according to what has been established by the law of Belize.

Now, you are continuing in your lack of respect, don’t deny it, by naming a Liquidator two days after Choice Bank told us that it was ready to approve withdrawals from our accounts. You and the Liquidator, a week later, haven’t issued an announcement specifying how the account holders are to recuperate their money.

If you and the Central Bank have thought of spending our money by setting a bureaucratic machine in motion, with inexperienced employees who earn large salaries with our money, know, Ms. Governor Joy Grant, that WE AREN’T GOING TO ALLOW IT!

If you haven’t presented us with a detailed plan by next Monday, we will refer to all of the international authorities so that they will suspend and put Belize’s banking system under investigation,

Sincerely, your humble servant,

Giovanni Caporaso Gottlieb

Practicing Attorney

 

[KrsPeeva]

Mr Giovanni Caporaso Gottlieb,
Thank yo u so much for the update. Highly Appreciated

 

[KrsPeeva]

Everyone who still has assets stuck with the bank speak up if you have any new info ! We all want our money back

 

[ChoiceCentralBelize]

Hi.. I have lots of funds stuck in this coursed country!

We can get togheter and go there!

Maybe will get a good lawyer to represent us!

 

[ChoiceCentralBelize]

Mr. Caporaso what can you do for us if they will try to give just a part or just a small part of our funds?

Can we go in a lawsuit with them?

Maybe they give us a part and the rest they ll steal...

How can we control that? I believe that they are corrupt and they got the bank more for them than for us!

Everyone called Central bank to resolve for us the situation, not for them... now the Central Bank is doying whatever they want because noone is controlling them... they can say whatever whenever without problems...

 

[KrsPeeva]

Let's GO PUBLIC EVERYONE . Where do we go to post more of this ? I want my money back...no bank and country should be able to just steal from you .

They use our money to make their money . It's time for them to PAY US BACK.

 

[KrsPeeva]

If it was bank holding billion of dollars by now things would be very different . But small country and small bank just with few millions may be forgotten and no one will know or care LET'S NOT LET THIS HAPPEN

 

[Claudia]

Can we claim this on USA or oother countries?

 

[Elian]

This was posted on the bank's page

 

[diablo]

This was posted on the bank's page

thanks for sharing, it sucks!