Euro Pacific bank is a scam

[Sols]

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 listed︀ 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 list︁ you linked before. EFIs are not banks.

 

[Radko]

Both, Banks and Financial Institutions in the Puerto Rico︀ jurisdicción are regulated by the OCIF.
There are +50 financial institutions in Puerto Rico, only︁ a few are FDIC, Banco Popular de Puerto Rico, Banco Santander, Fristbank, Oriental Bank and︂ 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 that︄ it had enough cash, and cash equivalents to cover all the deposits, so EPB was︅ a full reserve financial institution until the day it was closed by the OCIF.

 

[spartan7510]

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 so︀ far as to list it as a "bank" by name under the list of ENTIDAD︁ FINANCIERA INTERNACIONAL

​

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

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

 

[Radko]

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 full︀ reserve financial institution, and that's why Qenta bought EPB.
The only thing left is for︁ all the deposits to be transferred to Qenta.

 

[Sols]

The name you see is just whatever EPB wrote⁤ on the application form.

If EPG were a bank, they would be︃ licensed and listed as such.

Is EPB a bank? No.

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

 

[Martin Everson]

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

https://www.nytimes.com/2022/08/09/business/euro-pacific-peter-schiff.html
------- 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 it︀ had, he said, inadvertently been using clients’ deposits toward operating expenses. He said he had︁ remedied the problem by pouring his own money into the bank.

------ quote end

 

[Radko]

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

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

 

[americaoffshore]

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]

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 keep︀ you informed accordingly.

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

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

Sincerely,
Euro Pacific Bank.

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

 

[Radko]

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...

 

[Feisty]

This looks like another lie from Peter Schiff, according to the latest update from EPB‌ and Qenta. No transfers have been made yet to Optin Qenta customers or Optout customers.‍ Hard to believe absolutely anything anymore from these people, eapecially Peter Schiff.

 

[americaoffshore]

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]

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 Novo︀ for lets say a fixed term it may take time to let deposits expire else︁ penalties for breaking deposits my apply.

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

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

 

[Marie Manila]

Just out of curiosity, what would happen to the funds if Novo Banko went bankrupt‌ today?
Would they be lost then?

 

[Martin Everson]

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.

 

[Martin Everson]

How were bank funds able to already‌ be transferred to Qenta during all of this? Or is that not correct?

 

[Radko]

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 more︀ months or even years.
Unfortunately the lack of information provided by the Receiver leaves many︁ questions unanswered.

 

[Martin Everson]

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.

 

[Radko]

I believe⁠ Peter thinks that some of the money has already been transferred to Qenta, the money⁤ that was kept with Firstbank in Puerto Rico is the money he thinks has already⁣ been transferred, which I doubt it to be honest.

I imagine once all the funds⁢ are in Puerto Rico, EPB will start transferring the funds to those customers who have︀ opted out, and the rest of the money will be transferred to Qenta so those︁ customers who have opted in can have access to their money.
Although I believe all︂ those customers who have decided to stay with Qenta for the time being are just︃ waiting to have access to their funds so they can also transfer their money to︄ another Bank, let's keep in mind that EPB is unable to transfer dollars, only euros︅ and other currencies but not Dollars, so those customers that have dollars are waiting for︆ their money to be transferred to Qenta where they will then be able to transfer︇ their dollars to another bank.
Eventually all customers will leave EPB and Qenta, making the︈ sale of EPB to Qenta a complete waste of time.

 

[Martin Everson]

The funds will never ever be in Puerto⁤ Rico sadly. The way correspondence banking works is EPB can only instruct Novo and other⁣ correspondence banks via SWIFT messaging to send funds onwards to clients or other parties. No⁢ money will ever reach Puerto Rico unless in hard physical cash.

P.S Interesting that Peter's︀ alleged OCT account liked your post here but remains silent on the issue 😉.