Peter Schiff-owned Euro Pacific Bank has been suspended by Puerto Rico’s financial regulator. Schiff claims there is “no evidence of crime,” warning that “accounts are frozen and customers could lose money.”
Puerto Rico regulator suspends Peter Schiff’s bank
The Euro Pacific bank, owned by notorious bitcoin skeptic and gold bug Peter Schiff, has been suspended by the Office of the Commissioner of Financial Institutions of Puerto Rico, also known as Officina del Comicionado de Institutción Financires (OCIF).
Emphasizing that there is no evidence of crime at the bank, Schiff tweeted on Sunday:
Despite having no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues… as a result accounts are frozen and customers can 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 designated trustee” against Euro Pacific Intl. Bank Inc.
OCIF detailed, “The order orders the suspension of operations of Euro Pacific … due to non-compliance with its minimum capital requirements.” “In addition, the order imposes a total of $765,000.00 on Euro Pacific administrative fines for various violations of laws and regulations administered by the OCIF.” The regulator elaborated:
The serious insolvency situation of Euro Pacific is sufficient legal justification for OCIF to take the administrative action announced today.
Euro Pacific Bank posted a notice on its website, saying: “We are complying by holding transactions until at least July 7, 2022, to review their request.”
Lack of compliance, Schiff claims he has Euro Pacific Bank buyer
Schiff is trying to sell Euro Pacific Bank but he claims OCIF has blocked the sale.
“I have a buyer for the bank. But regulators won’t let me sell it,” tweeted Schiff, claiming that the buyer is “highly qualified” and has promised to “invest more capital than the regulatory minimum.”
The bitcoin skeptic said: “They want to put an end to this so that the media, the IRS and J5 can pretend it is being shut down for tax evasion and money laundering, even though there was no evidence of it in the bank.”
In another tweet, Schiff acknowledged that his bank is not in compliance with Puerto Rican minimum capital requirements. he explained:
My team didn’t understand the rules. We PR. were new to [Puerto Rico], We needed to have more capital than we thought.
“I was ready to put in the excess, but the commissioner of the OCIF told me not to do so as the shortfall would be rectified as per the terms of the sale,” he claimed.
Responding to a question on Twitter about how much the shortfall was and how long the capital requirement was an issue, Schiff said: “It was several million.”
Euro Pacific Bank was being investigated by tax authorities in five countries in 2020. Schiff acknowledged that he had been charged with tax evasion, but insisted that the allegations were false and that no charges were filed.
What do you think of the position of Peter Schiff’s Euro Pacific Bank? Let us know in the comments section below.
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