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