The financial watchdog of Puerto Rico has suspended Peter Schiff’s Euro Pacific Bank. While stating that “accounts are frozen and customers may lose money,” Schiff asserts that there is “no evidence of crimes.”
Peter Schiff’s Bank is suspended by Puerto Rico’s regulator.
The Office of the Commissioner of Financial Institutions of Puerto Rico, also known as Oficina del Comisionado de Instituciones Financieras, has suspended operations at Euro Pacific Bank, owned by infamous bitcoin skeptic and gold bug Peter Schiff (OCIF).
Schiff tweeted on Sunday that there is no proof of criminal activity at the bank.
Puerto Rico regulators closed my bank despite there being no proof of criminal activity because of net capital problems. Accounts are subsequently frozen, and clients run the risk of losing money.
A “Complaint and Cease and Desist Order” and a “Temporary Order Designating Trustee” have been issued against Euro Pacific Intl. Bank Inc., the Puerto Rican financial regulator declared on June 30.
The OCIF explained that the order “mandates the suspension of Euro Pacific’s operations” because of its flagrant disregard for the minimum capital requirements. Furthermore, the order imposes administrative fines totaling $765,000.00 on Euro Pacific for various infractions of the laws and regulations run by OCIF. The regulator added detail:
The severe insolvency of Euro Pacific is sufficient legal ground for OCIF to take the administrative action announced today.
“We are complying by pausing transactions until at least July 7, 2022, in order to review their request,” states a notice on Euro Pacific Bank’s website.
Schiff asserts that there is a buyer for Euro Pacific Bank due to a lack of compliance.
Schiff claims that the OCIF has prevented the sale of Euro Pacific Bank, despite his attempts to do so.
“For the bank, I have a buyer. Although the buyer is “highly qualified” and has pledged to “inject capital far beyond regulatory minimums,” regulators won’t let me sell it, Schiff tweeted.
“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,” the bitcoin skeptic stated.
Schiff acknowledged in a subsequent tweet that his bank does not meet Puerto Rico’s minimum capital requirements. He clarified:
My team was confused by the rules. We had just moved to Puerto Rico. We had to keep more money than we anticipated.
The claimant stated, “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.
The shortfall was several million, Schiff responded when asked on Twitter how much it was and how long the capital requirements had been a problem.
In 2020, tax authorities in five nations were looking into Euro Pacific Bank. Although Schiff acknowledged being accused of tax evasion, he emphasized that the claims were untrue and that no charges had been brought.