Prior to the suspension, Euro Pacific Bank was in the process of being acquired by a larger financial institution. Instead of allowing the sale, regulators placed the bank into receivership. Further, despite multiple offers to buy the bank, regulators have decided that the bank must be liquidated.

As a result, we proposed a plan to allow customers a period to withdraw their funds, or allow their funds to be transferred to another bank outside of Puerto Rico. We have already selected a bank that we think is best positioned to offer excellent services to our customers.

Unfortunately, we are still waiting for approval from the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF), and it’s taking a lot longer than we expected for them to complete this process.

We understand many of you are looking for a clearer timeline. At the same time, we are required to follow the financial regulatory authority’s lead. Thank you for your continued patience and understanding.

Summary:

• The Puerto Rico financial regulator in late-June requested that Euro Pacific Bank pause its operations. In response, we complied by pausing all transactions to review the details of their request. In the meantime, a trustee has been appointed to administer the standard affairs of the bank to assure safekeeping and preservation of funds.
• After the regulatory hearing scheduled on July 14th, Euro Pacific Bank and the Puerto Rico financial regulator entered negotiations for the continuation of bank operations.
• We can confirm that we are now in advanced discussions with the regulator, and we will share with you results as soon as it is permitted.
• As usual, Euro Pacific Bank maintains a full-reserve ratio, meaning we make no loans and keep all client deposits on-demand.