Euro Pacific bank is a scam

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Sols

Staff member
Mentor Group Gold

So they are licensed by the OCIF as a Financial Entity offering "Banking Products", but they are not a Bank?
The same way European EMIs sometimes call their services banking services, without actually being banks. In many places in the world, you can offer some bank-like services (such as accounts and cards) without being a bank. It doesn't make you a bank.

Here is the link to the OCIF document - https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Financieras Internacionales.pdf

** NOTE - EPB listed as a "bank" along with other banks...
Where does it say EPB is listed as a bank?

Here are the lists of banks:
Commercial banks: https://ocif.pr.gov/Consumidores/Lista Concesionarios/Bancos Comerciales.pdf
International banks: https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Bancarias Internacionales.pdf

I can only find EPB listed in the EFI list you linked before. EFIs are not banks.
 

Radko

Active Member
Go to the OFIC website and show me where it says EPB is a bank.

EPB was formed in SVG, where they obtained an offshore bank license. When they moved to Puerto Rico, they were never granted a banking license. Since the move to Puerto Rico, they were a bank in name only, not in a regulatory sense.

They are licensed as an International Financial Institution (Entidades Financieras Internacionales). Not as one of the Bancos Comerciales, not even among the Entidades Bancarias Internacionales.

I hope everyone gets their money out, though.
Both, Banks and Financial Institutions in the Puerto Rico jurisdicción are regulated by the OCIF.
There are +50 financial institutions in Puerto Rico, only a few are FDIC, Banco Popular de Puerto Rico, Banco Santander, Fristbank, Oriental Bank and Scotiabank.

In the case of EPB, this one gave no loans, not even credit cards, and had no creditors and no debtors, the Receiver audited EPB and found out that it had enough cash, and cash equivalents to cover all the deposits, so EPB was a full reserve financial institution until the day it was closed by the OCIF.
 

spartan7510

New member
The same way European EMIs sometimes call their services banking services, without actually being banks. In many places in the world, you can offer some bank-like services (such as accounts and cards) without being a bank. It doesn't make you a bank.


Where does it say EPB is listed as a bank?

Here are the lists of banks:
Commercial banks: https://ocif.pr.gov/Consumidores/Lista Concesionarios/Bancos Comerciales.pdf
International banks: https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Bancarias Internacionales.pdf

I can only find EPB listed in the EFI list you linked before. EFIs are not banks.

So according to your view, it is not a bank, but was sold to customers as a reserve "bank" offering banking products on their website? OCIF even went so far as to list it as a "bank" by name under the list of ENTIDAD FINANCIERA INTERNACIONAL
In that case it would be misrepresentation, miss-selling and fraudulent in which case Peter Schiff would be liable, which Im sure if that was the case the OCIF and IRS would have taken Schiff to pieces....

HOWEVER, if I look at the definition of International financial institutions - An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law - which in this case includes many "banks" under this category.
 

Radko

Active Member
It really is irrelevant what EPB is or was, at the end of the day there are only 5 financial institutions that are FDIC in Puerto Rico, all others are not, but all of them are regulated by the OCIF.

Puerto Rico is unique in the sense that even though most Financial Institutions are not FDIC, they are allowed to give loans and offer credit cards if they choose to, luckily EPB did not give loans, and it only offered pre-paid cards, that's why a lot of people went with EPB and luckily Mark Anderson and Peter Schiff kept their word, it was a full reserve financial institution, and that's why Qenta bought EPB.
The only thing left is for all the deposits to be transferred to Qenta.
 

Sols

Staff member
Mentor Group Gold
So according to your view, it is not a bank, but was sold to customers as a reserve "bank" offering banking products on their website? OCIF even went so far as to list it as a "bank" by name under the list of ENTIDAD FINANCIERA INTERNACIONAL
The name you see is just whatever EPB wrote on the application form.

In that case it would be misrepresentation, miss-selling and fraudulent in which case Peter Schiff would be liable, which Im sure if that was the case the OCIF and IRS would have taken Schiff to pieces....

HOWEVER, if I look at the definition of International financial institutions - An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law - which in this case includes many "banks" under this category.
If EPG were a bank, they would be licensed and listed as such.

Is EPB a bank? No.

Does it matter? Is it relevant? Maybe, maybe not.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
it was a full reserve financial institution, and that's why Qenta bought EPB.

Does not seem to be true according to NY Times. They say he was using client deposits to cover operating costs :confused:. So how is that a full reserve bank....lol.


------- quote start

In that settlement, Mr. Schiff agreed to return $66.7 million in deposits, using several million in gold to cover any cash shortfalls. He has also agreed to pay $300,000 in fines, according to a copy of the settlement.


He acknowledged that two years ago the bank was about $4 million short, because it had, he said, inadvertently been using clients’ deposits toward operating expenses. He said he had remedied the problem by pouring his own money into the bank.


------ quote end
 

Radko

Active Member
Does not seem to be true according to NY Times. They say he was using client deposits to cover operating costs :confused:. So how is that a full reserve bank....lol.


------- quote start

In that settlement, Mr. Schiff agreed to return $66.7 million in deposits, using several million in gold to cover any cash shortfalls. He has also agreed to pay $300,000 in fines, according to a copy of the settlement.


He acknowledged that two years ago the bank was about $4 million short, because it had, he said, inadvertently been using clients’ deposits toward operating expenses. He said he had remedied the problem by pouring his own money into the bank.


------ quote end
They did have some hiccups in 2020 but that was resolved.

The question is, under what pretence is Novo Bank holding onto the funds, if that's really the problem...
I do find it ironic that the deposits are in Portugal given that Portugal has a long list of blacklisted jurisdictions and one of those is Puerto Rico.
 

americaoffshore

New member
These are all tricks to make the matters complicated and make it difficult for anyone to trace the money through different jurisdictions. Bottomline is that there was a fraud and now the liquidation will even remove more money from the pool. This is a lesson for every investor not to invest in offshore banks. Most of them are frauds
 

ATNTESTING

New member
Latest update Migration & Liquidation Update: Jan 27, 2023 - Euro Pacific Bank

Dear Customers,

We would like to provide an update regarding the EPB Liquidation and release of customer deposits. As reported by the Receiver on Jan 23, 2023, the correspondent bank has indicated that their process to allow liquidation of EPB assets to conclude would be delayed further until March 2023.

We understand that this news may cause concern, and we want to assure you that we are closely monitoring the situation and staying in touch with the Receiver. We will also continue to provide updates as things change and/or reminders to keep you informed accordingly.

Please note that until the correspondent bank concludes their internal process, Qenta is not able to conduct the migration of opt-in accounts. We apologize for any inconvenience this may cause and thank you for your continued patience and understanding.

If you have any questions, please do not hesitate to reach out to us at [email protected] or if you need to escalate, you can email [email protected]

Sincerely,
Euro Pacific Bank.


So disrespectful for the customers waiting for their money!! So in March 2023, new update will be to wait june 2023...
 

Radko

Active Member
Does anyone know what a correspondent/custodian bank does with the deposits they receive from another bank?

I'm sure they don't keep all the deposits liquid, I'm sure they have a way of making money from those deposits, maybe they buy short-term Treasury bonds and they are waiting for those to mature...
 

americaoffshore

New member
It is a nexus. I said before they are just delaying things to remove as mucj money from the system as possible. After few months the customers will forget about their money and the perpetrators will be living a high life in their island villas.

A typical pyramid or a ponzee operation. Goodluck in getting any details out of Offshore jurisdictions like Puerto Rico
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Does anyone know what a correspondent/custodian bank does with the deposits they receive from another bank?

I'm sure they don't keep all the deposits liquid, I'm sure they have a way of making money from those deposits, maybe they buy short-term Treasury bonds and they are waiting for those to mature...

Yes I do. Depending on which options EPB chose when opening the correspondence account you generally get 3 services available to your Nostro account.

1. MM Deposit ability
2. FX Transactions ability
3. Trade Finance ability i.e L/C, BG's etc.

So if money is on fixed deposit with Novo for lets say a fixed term it may take time to let deposits expire else penalties for breaking deposits my apply.

I doubt there is any long dated FX Swaps etc or any clients that got trade finance with EPB. The 66.7m in deposits would generate 2.5% at current ECB rates. That's over 1.5m in free interest over a year if they could wait it out. Even for 3 months it would mean over 400k in interest.

I can see it being in all parties interest (except customers) to have money sit on deposit for a few months if that's what they chose to do ;). But I doubt this is whats happening as Novo would not pass on all ECB deposit interest to a correspondence account customer like that without taking its share.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Just out of curiosity, what would happen to the funds if Novo Banko went bankrupt today?

Nothing would happen. Nostro accounts are not on banks balance sheet and are basically safekeeping accounts.

Anyway hopefully all money with Novo reconciles with EPB's books. Everyone should get their money back unless something has been spotted that needs more time to investigate by Novo and has delayed their process. Again this is just speculation.
 

Radko

Active Member
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Radko

Active Member
How were bank funds able to already be transferred to Qenta during all of this? Or is that not correct?
Sorry I'm not sure I understand the question.
Deposits were supposed to be transferred to Qenta by November of last year, but as we all know "something", supposedly with Novo Bank, has happened that they are not allowing the funds to be transferred.
I wonder if customers will ever know why Novo Bank is holding on to the funds, what's the excuse? And I wonder if Novo Bank will carry on holding on to the funds for many more months or even years.
Unfortunately the lack of information provided by the Receiver leaves many questions unanswered.
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
Sorry I'm not sure I understand the question.

Sorry it was in response to Peter's twitter post you posted of him saying money already transferred to Qenta. I am trying to understand how it was possible or whether he made a mistake in saying this.
 

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