GLOBAL TAX CHIEFS STAND BY PUERTO RICO'S FINANCIAL INSTITUTION REGULATOR AS BANK IS SHUT DOWN

Bank was once target of J5 countries in a global day of action in 2020?

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SAN JUAN, PR – The Joint Chiefs of Global Tax Enforcement (J5) commended a decision announced today by Puerto Rico’s financial institution regulator. The move to suspend the operations of a financial institution in Puerto Rico follows a global effort launched by J5 two years ago.?

The Office of the Commissioner of Financial Institutions (OCIF) of Puerto Rico issued a Cease and Desist order and suspended the operations of Euro Pacific International Bank. The action was commended by the J5, who had, two years prior, conducted a global day-of-action to put a stop to the suspected facilitation of offshore tax evasion and money laundering by the bank.?

Known as Operation Atlantis, the 2020 day-of-action was the first major operational activity for the J5. During the day of action, each country independently executed enforcement actions consistent with the legal requirements in their countries. These actions included intelligence and information gathering, search warrants, interviews, production orders and subpoenas.?

The 2020 day-of-action occurred as part of a series of internationally led investigations that revealed a number of clients used a series of sophisticated structures and international financial institutions to obfuscate their tax situations. These conscious attempts were for the purpose of evading their tax obligations and/or laundering the proceeds of their crimes.?

“There is no doubt that OCIF’s work sends a strong message to others that the Puerto Rican financial industry will not be a haven for tax evaders or illegal conduct. We stand here together today to display the strong partnership we have with OCIF and to commend their leadership for taking decisive action,” said Jim Lee, Chief, Internal Revenue Service Criminal Investigation. “We are also here with our J5 partners, celebrating four years together this week, showing the world the power of coordination, collaboration and partnerships. The actions announced today are an example of the wide-ranging tools available only through our collaboration with partner agencies. The independent actions taken by OCIF today represent an all-inclusive compliance effort that the J5 chiefs are committed to furthering in an effort to assist bringing to justice those who avoid paying taxes or commit other financial crimes.”?