Peter Schiff-owned Euro Pacific Bank has been suspended by Puerto Rico’s financial regulator. Schiff claims that there’s “no evidence of crimes,” warning that “accounts are frozen and customers may lose money.”
Puerto Rico’s Regulator Suspends Peter Schiff’s Bank
The Office of the Commissioner of Financial Institutions of Puerto Rico has suspended Euro Pacific Bank. It is owned by Peter Schiff (a notorious Bitcoin skeptic, and gold bug), also known as Oficina del Comisionado de Instituciones Financieras OCIF.
Schiff claimed Sunday that the bank does not have any evidence of criminal activity.
Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues … As a result accounts are frozen and customers may lose money.
The Puerto Rican financial regulator announced on June 30 that it has issued a “Complaint and Cease and Desist Order” and a “Temporary Order Designating Trustee” against Euro Pacific Intl. Bank Inc.
“The order mandates the suspension of Euro Pacific’s operations … due to its crass noncompliance with the minimum capital requirements,” the OCIF detailed. “Further, the order imposes on Euro Pacific administrative fines totaling $765,000.00 for various violations to the laws and regulations administered by OCIF.” The regulator elaborated:
Euro Pacific’s serious insolvency situation constitutes sufficient legal justification for OCIF to undertake the administrative action announced today.
Euro Pacific Bank has posted a notice on its website, stating: “We are complying by pausing transactions until at least July 7, 2022, in order to review their request.”
Schiff Claims He has a Buyer to Buy Euro Pacific Bank’s Compliance
Schiff tried to sell Euro Pacific Bank, but he claimed that the OCIF had blocked him from selling the bank.
“I have a buyer for the bank. But regulators won’t let me sell it,” Schiff tweeted, claiming that the buyer is “highly qualified” and has promised to “inject capital far in excess of regulatory minimums.”
The bitcoin skeptic opined: “They want to liquidate it so the media, the IRS, and the J5 can pretend it’s being shut down for tax evasion and money laundering, even though there was no evidence of either at the bank.”
Schiff also admitted in a tweet that his bank was not meeting the minimum capital requirements of Puerto Rico. He explained:
My team didn’t understand the rules. It was our first time in PR [Puerto Rico]. It was necessary to have more capital than originally thought.
“I was prepared to put the extra in, but the Commissioner of OCIF told me I did not have to as the deficiency would be cured per the terms of the sale,” he claimed.
Replying to a question on Twitter about how much the shortfall was and how long the capital requirements had been an issue, Schiff said: “It was several million.”
In 2020, five tax authorities were investigating Euro Pacific Bank. Although Schiff acknowledged that he was being accused of tax evasion, he stressed that these allegations were untrue and that no charges were brought against him.
What do you think about Peter Schiff’s Euro Pacific Bank’s situation? Please leave your comments below.
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