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.
Euro Pacific bank is a scam
- Thread starter sonato
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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.
https://kstp.com/kstp-news/business-news/peter-schiff-trying-to-save-puerto-rico-bank-under-probe/
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 saving︁ grace is if Peter Schiff injects more money into the bank to cover the wind︂ down costs or if there is still enough capital to cover the fine and liquidation︃ costs. Any bank recovery will still have the remaining correspondence banks walk away with no︄ prospect of any new ones on horizon appearing. So bank would be useless.
P.S Due︅ to money laundering aka tax concerns any wind down if it happens is gonna require︆ clients providing extensive due diligence docs etc.
Good Luck to customers.
https://kstp.com/kstp-news/business-news/peter-schiff-trying-to-save-puerto-rico-bank-under-probe/
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 saving︁ grace is if Peter Schiff injects more money into the bank to cover the wind︂ down costs or if there is still enough capital to cover the fine and liquidation︃ costs. Any bank recovery will still have the remaining correspondence banks walk away with no︄ prospect of any new ones on horizon appearing. So bank would be useless.
P.S Due︅ to money laundering aka tax concerns any wind down if it happens is gonna require︆ clients providing extensive due diligence docs etc.
Good Luck to customers.
"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 switching︇ the strucure over to Dubai with local Banking.
They struggled already since COVID in 2020︈ and we have seen some documents request for transfers OUT of the bank to close︉ the account NO one can imagine - I would even go as far as they︊ asked for stuff over weeks which simply doesn't exist - now afterwards it looks like︋ it was some kind of Ponzi Scheme to stop the money outflows of the bank︌ 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 and︍ really hope that Interactive Brokers let all the clients transfer out there holdings with them︎ at least.
And still so many Service Providers have this Bank advertised on there website️ 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 struggled already since COVID in 2020︈ and we have seen some documents request for transfers OUT of the bank to close︉ the account NO one can imagine - I would even go as far as they︊ asked for stuff over weeks which simply doesn't exist - now afterwards it looks like︋ it was some kind of Ponzi Scheme to stop the money outflows of the bank︌ 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 and︍ really hope that Interactive Brokers let all the clients transfer out there holdings with them︎ at least.
And still so many Service Providers have this Bank advertised on there website️ 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.
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 a︀ trustee had been appointed to liquidate the bank’s assets and return all deposits.
----- quote︁ end
https://www.theage.com.au/national/...-offshore-bank-suspended-20220630-p5ay3g.html
Remember the U.S government had already cut off Fedwire (USD) access for the︂ bank a while back. And anytime you see the U.S IRS Criminal Investigation Chief stood︃ next to Puerto Rico's FI Commissioner (Natalia Diaz) while holding a press conference about the︄ banks suspended license you better believe something major is going down eek¤%&.
It seems they have been conducting︈ 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 laundering︊ money for a billion dollar drug trafficking operation and tax evaders amongst others eek¤%&. There︋ are multiple countries and agencies involved it seems in the investigation.
Good luck to the︌ banks remaining customers. Seems as @Fred said and to me it is clear they had︍ 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 that️ 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
----- 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 a︀ trustee had been appointed to liquidate the bank’s assets and return all deposits.
----- quote︁ end
https://www.theage.com.au/national/...-offshore-bank-suspended-20220630-p5ay3g.html
Remember the U.S government had already cut off Fedwire (USD) access for the︂ bank a while back. And anytime you see the U.S IRS Criminal Investigation Chief stood︃ next to Puerto Rico's FI Commissioner (Natalia Diaz) while holding a press conference about the︄ banks suspended license you better believe something major is going down eek¤%&.
It seems they have been conducting︈ 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 laundering︊ money for a billion dollar drug trafficking operation and tax evaders amongst others eek¤%&. There︋ are multiple countries and agencies involved it seems in the investigation.
Good luck to the︌ banks remaining customers. Seems as @Fred said and to me it is clear they had︍ 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 that️ publishes its financials and not to deal with ones like Euro Pacific that don't.
------ quote start
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.
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"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."
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P.S So where are all the Euro Pacific Bank fans that were bashing︀ me...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 bashing︀ 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...
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 smi(&%. Don't take my moment of glory away here however damn_(. 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 😉.
https://www.offshorecorptalk.com/threads/deltec-bank.37831/post-219272
P.S Maybe we should start next on red flags around Tether 😉.
https://www.offshorecorptalk.com/threads/deltec-bank.37831/post-219272
Peter Schiff’s bank closure strengthens Bitcoin case for financial freedom
https://cointelegraph.com/news/pete...trengthens-bitcoin-case-for-financial-freedom
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Well, tether could process a lot of withdrawals lately without much issues. (about 25%).
But that being said, Bitcoin is still the better long term storage.
But that being said, Bitcoin is still the better long term storage.
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 Puerto︀ Rico...lol.
https://twitter.com/x/status/1543749699009740802
----- 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 Puerto︀ Rico...lol.
https://twitter.com/x/status/1543749699009740802
I wouldn't rule it out as a possibility. But what's more likely is︀ that the company is insolvent, deposits are safe, and Peter Schiff is just throwing everything︁ he can at the wall and seeing what sticks.
The way Puerto Rico international banks︂ are regulated is similar to like EU-style EMIs, where they are required by law to︃ hold 100%+ reserves. Calling them banks is arguable a misnomer. Normally, these reserves are ring-fenced︄ for creditors in case the company goes insolvent. I don't know if that's the case︅ in Puerto Rico, though. Haven't read the law in much detail recently.
If creditors are︆ able to dip into deposits, banking regulations (both words used very loosely/generously here) in Puerto︇ Rico are absolutely atrocious , worse than much less reputable jurisdictions. If so, that's the︈ only wake-up call anyone needs to not put any money ever with a Puerto Rico︉ international bank.
The way Puerto Rico international banks︂ are regulated is similar to like EU-style EMIs, where they are required by law to︃ hold 100%+ reserves. Calling them banks is arguable a misnomer. Normally, these reserves are ring-fenced︄ for creditors in case the company goes insolvent. I don't know if that's the case︅ in Puerto Rico, though. Haven't read the law in much detail recently.
If creditors are︆ able to dip into deposits, banking regulations (both words used very loosely/generously here) in Puerto︇ Rico are absolutely atrocious , worse than much less reputable jurisdictions. If so, that's the︈ only wake-up call anyone needs to not put any money ever with a Puerto Rico︉ international bank.
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 come︀ from and to pay also the liquidators. This is why it is paramount that people︁ only ever deal with banks that publish their financials. The bank has been under water︂ for years and customers had no idea. If there is no capital left the money︃ to pay the $750k fine and the liquidators has to come from somewhere other than︄ thin air.
We just hope all clients assets are actually all there ca#"!.
The best︅ situation is that Peter agrees with regulators on July 7th to inject enough cash to︆ plug any shortfall or fine and make all parties whole before an orderly wind down︇ that was mentioned will take place. His plan to sell the bank is interesting. Who︈ would want to buy such garbage with such a garbage client base? Any tom dick︉ or harry can apply for a Puerto Rico banking license. They granted like 55 or︊ so banking licenses since 2014 and like 5 last year alone...lol.
https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Financieras Internacionales.pdf︋
https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Bancarias Internacionales.pdf
Not just banks but investment companies in reputable places like the U.K that claim ring fenced️ 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.
https://www.offshorecorptalk.com/threads/potential-client-losses-if-uk-broker-goes-bankrupt.24893/
----- 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 come︀ from and to pay also the liquidators. This is why it is paramount that people︁ only ever deal with banks that publish their financials. The bank has been under water︂ for years and customers had no idea. If there is no capital left the money︃ to pay the $750k fine and the liquidators has to come from somewhere other than︄ thin air.
We just hope all clients assets are actually all there ca#"!.
The best︅ situation is that Peter agrees with regulators on July 7th to inject enough cash to︆ plug any shortfall or fine and make all parties whole before an orderly wind down︇ that was mentioned will take place. His plan to sell the bank is interesting. Who︈ would want to buy such garbage with such a garbage client base? Any tom dick︉ or harry can apply for a Puerto Rico banking license. They granted like 55 or︊ so banking licenses since 2014 and like 5 last year alone...lol.
https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Financieras Internacionales.pdf︋
https://ocif.pr.gov/Consumidores/Lista Concesionarios/Entidades Bancarias Internacionales.pdf
Not just banks but investment companies in reputable places like the U.K that claim ring fenced️ 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.
https://www.offshorecorptalk.com/threads/potential-client-losses-if-uk-broker-goes-bankrupt.24893/
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