Notice to Clients Regarding Change of Jurisdiction
AS OF OCT 20TH 2017
Dear Valued Customers,
In our continued efforts to build a world-class online bank offering, Euro Pacific Bank Ltd. would like to inform all customers that on November 20th, 2017, the Bank will be re-domiciling its operations to San Juan, Puerto Rico, from St. Vincent and the Grenadines. This change will have no impact on the day-to-day operation of your account, as the legal entity is simply moving jurisdictions. Management determined that this move was necessary to provide customers with access to new products and services that are not currently available in St. Vincent and the Grenadines.
How will this move affect me?
The move will not affect your account, your online banking access, or any other aspect of the daily use of your account. The Bank will continue to be licensed as an International Bank, but regulated in Puerto Rico. We feel that this move provides customers with the advantages of both an offshore and onshore entity, enabling access to the US financial system, while still maintaining the advantages of an international (offshore) entity.
Further, there are four major developments we’d like to share with you:
- New USD Route – Through Puerto Rico the Bank has been able to obtain a direct USD correspondent account with Crown Agents Bank. Crown Agents Bank is an over 150 year old financial institution in the UK which acts as a correspondent for central banks and large financial institutions globally, with a specific focus and history in the Caribbean region, making it an ideal long-term partner. This relationship will be available as soon as the move is complete, enabling a fast and reliable way for all clients to send and receive USD.
- Federal Reserve – The Bank is currently in the process of opening a master account with the Federal Reserve Bank of New York, for USD (expected completion by end of Q2 2018). This account will enable a stable and highly reliable facility for USD payments and deposits indefinitely, as well as solidify the Bank’s position as a premier provider of multi-currency payment services.
- Mastercard Principal Membership – The Bank is in the application stage of applying for a Principal Membership with MasterCard. This membership will enable the Bank to offer new, lower cost cards as well as many new card products, which will be competitive and in line with the expectations of our global customers.
- Tax Obligations and Information Sharing – Customers of Euro Pacific Bank in Puerto Rico will still be subject to FATCA as it currently stands (for more information see here). Customers will no longer be subject to reporting requirements under the new international Common Reporting Standards (CRS) legislation, which is set to take effect in St. Vincent and the Grenadines next year, as Puerto Rico is a US territory, and the United States has not signed on to implement this Standard.
As the move unfolds, there will be more opportunities for the Bank to offer new services at lower costs and enhance our existing offering.
What are my next steps?
- If you wish to retain your account, then no further action is necessary.
- Clients that do not wish to retain their account will have thirty (30) calendar days from today, October 20th 2017 to November 20th 2017, to review the new Terms and Conditions, contact the Bank, and request an account closure.
For further details, you may contact the Bank at +1784-453-2086 or toll free at +1-888-527-4041, or email our Client Services team at [email protected].
Euro Pacific Bank Management
ADDITIONAL ANSWERS TO FREQUENTLY ASKED QUESTIONS
Please review the Notice above in full. Once you are finished, if you would like more information, the Bank has prepared a list of frequently asked questions and answers, which can be found here.
Change of Jurisdiction of Global Trading
Dear Valued Clients,
We are pleased to announce that the Bank’s wholly-owned broker dealer, Global Trading (GTL), has acquired a new securities license in the British Virgin Islands.
Global Trading is the subsidiary that operates:
- Global TradeStation multi-asset brokerage platform
- MetaTrader 4
- Custody service for Euro Pacific Funds mutual funds and Euro Pacific Advisors separately managed accounts
As a part of our overall strategy to re-domicle the Bank into Puerto Rico, we decided to maintain a separate legal structure for the brokerage and investment management business of Euro Pacific Bank (composed of Global Trading, Euro Pacific Funds, and Euro Pacific Advisors).
In assessing the best jurisdiction to continue offering the wide range of brokerage products and services to our clients, we settled on the British Virgin Islands because they are an internationally-renowned jurisdiction for financial services, with a strong regulatory and legal regime.
What to expect
As part of the redomicle to BVI, Global Trading has adopted the legal name of Euro Pacific Securities, Inc., but will continue to trade as Global Trading.
In BVI, Global Trading holds an Investment Business License, issued by the British Virgin Islands Financial Services Commission (Certificate #SIBA/L/12/1112), in multiple categories including:
- Category 1: Dealing in Investment
- Sub-category A: Dealing as Agent
- Sub-category B: Dealing as Principal
- Category 2: Arranging Deals in Investments
As of Monday November 20th, 2017, Global Trading has officially commenced operations in the British Virgin Islands, coinciding with the completion of the Bank’s move to Puerto Rico.
We are looking forward to continuing to further our world-class brokerage offering to our clients and taking advantage of our new position in BVI to continue growing and expanding our offering.
Global Trading Management Team
Common Reporting Standard (CRS)
The Common Reporting Standard (CRS), calls on countries to obtain information from their financial institutions and exchange that information with other countries automatically on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
Euro Pacific Bank and its subsidiaries have the obligation to comply with the Organization for Economic Co-operation and Development (OECD) Common Reporting Standard (CRS).
To whom is the information reported:
- For accounts held by Euro Pacific Securities, Inc. (Global Trading), the required information will be reported to Financial Services Commission (FSC) of the British Virgin Islands.
- For accounts held by Euro Pacific Intl. Bank Inc., there is no reporting since the United States and Puerto Rico are non-participating jurisdictions.
When will reporting take place and for what timeframe:
- For accounts held by Euro Pacific Securities, Inc. (Global Trading), the information will be reported for the first time in May 2017 for new accounts opened in the period of November 20th to December 30th 2017
For further information on the Common Reporting Standard you may access the OECD informative website at http://www.oecd.org/tax/automatic-exchange/common-reporting-standard
What types of accounts/currencies are available?
Clients have access to bank accounts denominated in EUR/USD/GBP/CAD/AUD/JPY/NZD/CHF/PLN as well as GOLD and SILVER. Clients also have access to investment accounts, which range from brokerage accounts, mutual fund accounts and Separately Managed Accounts.
To learn more about the product suite at the bank please refer to our products section.
Please contact the bank if you have interest in other currency account options.
Do I have an IBAN?
Currently, Puerto Rico does not participate in IBAN (International Bank Account Number). Therefore, Euro Pacific Bank clients do not have IBANs and should revert to their standard MT103 wiring instructions.
If your sending institution is mandating that an IBAN is needed, we recommend that you communicate to them that the transfer is a SWIFT payment, which is routed through a SWIFT code (also known as BIC code) and an account number. Often, many sending institutions request IBANs because they are accustomed to using them.
Incoming Wire Transfer Guidelines
In an effort to continually improve your banking experience and adapt to the ever-changing regulatory environment, we urge you to follow these best practices to ensure that INCOMING wires are received successfully:
- No PO Box addresses – Wires from bank accounts associated with a PO Boxes will be rejected by our correspondent banking network. **VERY IMPORTANT**
- Add Economic Purpose – All incoming wires should include the economic purpose of the payment in the SWIFT field 70 (also known as the “Message to Beneficiary” or Reference/Information field). Wires that do not state the economic purpose will be returned by our correspondent banking network. **VERY IMPORTANT**
- Is an Intermediary Bank necessary?
- If for any reason you cannot specify our Intermediary Bank, you may omit our Intermediary Bank, and thereby acknowledge that the sending bank must retrieve the correct intermediary route from the SWIFT system. By omitting our Intermediary Bank, you risk that your funds are routed to an incorrect or outdated Intermediary Bank. We accept no liability if the wire transfer does not arrive successfully for any reason.
- If your EPB wire transfer instruction does not include an Intermediary Bank, one will not be required.
- Do I have an IBAN? Currently, St. Vincent & the Grenadines does not participate in IBAN (International Bank Account Number). Therefore, Euro Pacific Bank clients do not have IBANs and should revert to their standard MT103 wiring instructions. Learn more here.
- When will I receive my wire transfer? Arrival of your funds depend on the processing time of the sending bank and the intermediary bank(s) in the payment chain. As soon as the funds arrive, we will update your Online Banking recent transactions. Please monitor your transactions before inquiring about the status of your wire transfer.
- How much will we charge for the incoming wire? We credit the exact amount our corresponding bank receives, followed by our incoming wire fee. A full list of fees are published here. We accept no liability if an intermediary bank in the payment chain charges a transfer fee.
- How do I know where my funds are during transit? Unfortunately, if your funds have not arrived, we have no way of knowing its status. To know exactly where your funds are within the banking channel, please request your sending bank to perform a wire trace.
- Wire Repair Fees – A wire repair fee will be assessed if an incoming wire transfer is not executed in proper MT103 format, meaning information is missing, misplaced, incorrect, or a combination. You are responsible for monitoring your Online Banking transactions, and if you are assessed a wire repair fee, that you read the reason and rectify the formatting issue with the sending bank for your future transfers.
We hope this helps and if you encounter wiring issues, please contact your Private Banker or e-mail [email protected] with the information above.
What are the trading commissions for brokerage?
Commissions depend on the security. Please see our Trading Conditions for more information.
Do I need to create an Incoming Wire Transfer Request?
Creating an incoming wire transfer request speeds up the processing of your wire by notifying our staff that the payment is on the way, and gives you an opportunity to upload supporting documentation if the wire transfer is coming from a third party.
While creating an incoming wire transfer request is optional, it is strongly recommended for non-recurring deposits.
What is an Operating Agreement?
An Operating Agreement (or OA) is essentially your internal client profile at Euro Pacific Bank, composed of your:
- Corporate or Personal Activities
- Wire Transfer Senders/Destinations, also known as Partners
- Personal Background
Your OA dictates what transactions our Operations team will and will not action. Therefore, we require your assistance updating it periodically in order to quickly and efficiently approve your transactions.
If you have any other resources or references that we can use in updating your OA, please notify us.
When will I receive my Bank Card?
All card orders are shipped approximately 4-5 business days after our card supplier receives our card request, which is sent to them every Wednesday. Be sure to enter your Card Request on or before Tuesday to avoid waiting until the following week.
After our card supplier ships the card, they send us the tracking code. There may be a slight delay between the shipment and when we receive the tracking code to forward to you, so thank you in advance for being patient.
Reporting a lost or stolen card
Call the IVR number (see below for options) and follow the steps provided to immediately block the card and/or report it stolen.
- Toll Free: +1-888-527-4041
- Local (PR): +1-787-280-9766
- United Kingdom: +44-20-3318-4096
- Hong Kong: +852-5808-2784
You can also login to your web banking account and click the “Block/Suspend Card” button next to your card number on the “Accounts” screen.
To order a replacement card, please follow the normal proceudre for requesting a card through the banking software. Alternatively you can contact our Client Services department and speak with an agent during bank business hours to request a replacement card.