Money Laundering Prevention: Puerto Rico-Based Bank Suspended Amid Investigation
Introduction
Puerto Rico authorities have suspended the operations of Euro Pacific International Bank, a financial institution founded by US stock broker Peter Schiff, amid allegations of facilitating money laundering and offshore tax evasion. The bank was found to be lacking internal controls, non-compliant, and insolvent.
Background
Euro Pacific International Bank obtained a license to operate in Puerto Rico in 2017. However, despite numerous opportunities, the bank has refused to comply with regulations. The investigation was launched following a lack of transparency and irregularities at the bank, which was formed in St. Vincent and the Grenadines in 2011 before moving to Puerto Rico.
Banking Services
The bank primarily offers mutual funds and precious metals accounts, but does not provide loans or credit cards. Despite this limited scope, officials have raised concerns about the bank’s lack of transparency and compliance with regulations.
Investigation
The investigation was launched by the Joint Chiefs of Global Tax Enforcement, an international agency that scrutinizes financial institutions in member countries. The agency is currently overseeing over 100 civil and criminal investigations worldwide.
Statements from Officials
- Commissioner Natalia Zequeira: “Creditors will be paid in a certain order, but I cannot disclose the number of clients or total assets held by the bank due to confidentiality concerns.”
- Jim Lee, chief of the International Revenue Service Criminal Investigation: “The Puerto Rico financial industry will not be a haven for tax evaders or illegal conduct. While I cannot confirm or deny whether Schiff is under investigation, the IRS is working closely with Puerto Rican authorities to crack down on financial crimes.”
- Simon York, United Kingdom’s chief in the international group: “The game is up for offshore tax evaders and any UK citizens involved with this bank should come and talk to us.”
Conclusion
The suspension of Euro Pacific International Bank sends a clear message that money laundering and offshore tax evasion will not be tolerated. The investigation is ongoing, and officials from Puerto Rico and the Joint Chiefs of Global Tax Enforcement are working together to crack down on financial crimes.