Bancafe Asset Recovery

$6.89 million will be disbursed to account holders of the bank closed in Guatemala in 2006 by the Monetary Board.

Friday, June 15, 2012

The status of the case up to June 12, 2012 according to PricewaterhouseCoopers (PWC) is as follows:

On June 12, 2012, the Custodian finished the calculations required to carry out a fifth distribution.

Preparation for the fifth distribution has taken longer than anticipated, partly because of delays in the process associated with the Custodian’s claim to recover assets that were indicated to have originated from BIB, and which were transferred to companies belonging to Grupo Financiero del País (the "Group"), and eventually deposited in the Fund for Savings Protection, known as FOPA by its Spanish initials.

The Custodian is currently participating as a plaintiff in a criminal proceeding being directed by the Public Ministry of Guatemala, against several former shareholders, directors, and executives of BIB. The Custodian and its legal counsel in Guatemala have presented substantial evidence on the transfer of funds from the bank to BIB Group companies, some regulated and some not, for an amount greater than $99 million, without obtaining any return.

The claim in FOPA is incidental in the criminal proceedings, and through this claim, the Custodian is seeking the return of approximately $23 million from FOPA.

It has set a hearing for the return of funds from FOPA for June 15, 2012 at 2:30 pm.

More on this topic

Guatemala: Regulation on Rating Agency Operations

April 2013

Rating agencies registration is now mandatory and banking institutions must be rated by one of them.

Rating agencies will have to submit their paperwork to the Superintendency of Banks (SIB). According to the chairman of the Monetary Board (JM) and the Bank of Guatemala (Banguat), Edgar Barquin, "among the amendments to the Law on Banks and Financial Groups is the addition that now banks must have a risk rating" .

Guatemala: Former Directors of Bancafé Prosecuted

March 2013

The Banking Unit of the Prosecution Office Against Organized Crime has accused them of a special case of fraud, comprising continuous money laundering and financial intermediation.

Eduardo Manuel González Rivera, his sons Manuel Eduardo and Jorge Alfredo Gonzalez Castillo, Ariel Estuardo Camargo Fernández, Moisés Cupersmith, Óscar Salazar Perdomo, Gloria Marina Barrios Pineda, Eduardo Antonio Palomo Escobar and his son Eduardo Alberto Palomo Marh, Patricio Andrade Falla, Álvaro Maldonado Vásquez, Celeste Aída Desirée Soto de Vetorazzi, Francis Frederick Fisher Theriot and Juan Eladio Campos Moraga, are accused "of having defrauded the company and led to its bankruptcy."

Guatemala: Bancafé Funds in Dispute

August 2012

Two institutions are complaining about funds that were recovered through the Trust for Excluded Assets of Banco del Café S.A..

The custodian of the assets of Bancafe International Bank (BIB, off shore financial branch of Bancafé), Pricewaterhouse Coopers EC Inc. (PWC) is calling for funds to be distributed among investors.

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