Your Claim

This is an Urgent Message for International Account Holders of Privately Owned (Offshore) Banks That Are Shut Down by the Authorities…

Astonished. Or even flabbergasted. That describes the main emotion of creditors when access to their bank facilities and account balance is blocked. Bank failures are an uncommon, but unfortunately real phenomenon. They emerge when financial institutions are (likely to become) insolvent or when they contravene with international standards. The bank is then unable to meet the obligations to the customers and the regulatory authority steps in. As a result, the bank is placed under statutory administration and a resolution plan is formulated. All this time, account holders and other creditors are left in the dark. The fact that regulatory intervention is not announced in advance, and that expectations are not well managed, emphasizes this point. A perfect storm with far-reaching consequences for legitimate account holders who need access to their money. Today.

Nowadays, having a bank account in a foreign country is not as unusual anymore as it once was. Many people believe that uniform rules and regulations apply to the international financial industry. In reality, sovereign states set their own rules that may differ from those of other countries. Often, this distinction is only exposed in times of financial crisis and when financial institutions fail.

International financial centers and their offshore equivalents have a particular risk profile. In these jurisdictions, the size of the financial industry outweighs the size of the local economy by far. Government agencies and the public sector cater to local needs. In most offshore financial centers these local needs are insufficient to control foreign direct investment provided via offshore IBC’s. Consequently, this infrastructure makes a jurisdiction vulnerable to abuse and susceptible to international intervention. This may eventually lead to penalties and sanctions that have disproportionate effects on privately owned financial institutions that cater non-resident customers. There is then a real possibility of the financial institution having to close at the expense of legitimate account holders.

Bank Failure and Deposit Insurance

Retail deposits and shareholder capital are used to fund financial institutions. As a result, when a bank runs into financial difficulties, the treatment of account holders and other creditors becomes increasingly important. Once the bank is placed under statutory administration it must be determined whether failure is systemic or institutional. Systemic failure of financial institutions is interconnected with the public interest doctrine and considerations over tax payer funded rescue missions. It must be decided whether the bank should be recapitalized or dissolved. All other bank failures are treated as an internal and private matter paid by creditors and shareholders. While resolution plans are being drafted, deposit protection provides eligible account holders with a refund of their insured deposits.

Deposit insurance is intended to protect the stability of the domestic financial sector while minimizing the risk of loss of retail deposits. It protects and supports account balances up to a predetermined amount and leaves the surplus on the account as risk capital. The cap on deposit protection reduces the possibility that depositors implicitly subsidize excessive risk taking by financial institutions, thus reducing moral hazard. Depositors therefore purport to discipline financial institutions by withdrawing their uninsured deposits when they perform poorly and commit wrongdoing. The problem, however, is that most bank customers are unaware of the hidden challenges within financial institutions. They are therefore caught by surprise when their bank fails, account facilities are restricted and their assets remain blocked.

Privately owned (offshore) banks play a significant role in the global financial industry. For local economies however, these financial institutions are sporadically of systemic importance. It is therefore likely that institutional failure is governed by national law, insolvency regulation and resolution frameworks. This is to ensure that losses are absorbed by shareholders and creditors via mandatory burden sharing or bail-in. As a result, bank account holders and other creditors must pay very close attention to the resolution plan for the bank to minimize risk and maximize repayment.

How is Money Repaid, Even When the Account Balance Exceeds the Insured Limits?

Lawmakers seek to strike a balance between market discipline and financial system protection. As a result, the market has the responsibility of inducing financial institutions to conduct their business effectively and efficiently. Regulators require financial institutions to have a strong financial architecture. Minimum capital requirements, mandatory participation in a local deposit insurance fund and supervisory review are among these requirements. Regulators may intervene when markets fail to punish misbehavior, excessive risk-taking, and regulatory violations of the applicable financial institution. As a result these very regulators may initiate statutory administration and resolution.

All different stages of bank resolution benefit international creditors. In general, these include statutory administration, deposit insurance, and bank liquidation. Creditors can also join collective civil action against wrongdoers they find responsible for their damages. Because this is their money, these very creditors owe it to themselves to identify superior recovery strategies and do all the right things they can to ensure that their belongings are returned within reasonable time. Their main concern is how to cut through the clutter and avoid inefficient, useless and expensive methods that do not bring them closer to the desired result.

With the goal of minimizing risk and maximizing repayment potential, a multi-sided recovery strategy increases the probability of success. It is imperative to take different disciplines into account in order to achieve the desired objective. These include:

  • Statutory Administration: A responsible regulator, often the central bank, may assume control of a supervised financial institution to manage the bank on its behalf. The public is not notified in advance about the decree and an initial freeze on financial holdings, bank accounts and transfers is established. The administrator may allow restricted access to bank facilities or outgoing payments while imposing capital controls. Simultaneously, a resolvability assessment determines the future of the bank and deposit insurance provides for a repayment function for retail depositors.

  • Deposit Insurance: bank deposit protection reduces the risk of eligible account holders losing money. It helps maintain financial stability. Deposit insurance schemes vary by jurisdiction and cover retail deposits up to a certain amount. For claims to be considered valid, they must be filed within a predetermined timeframe and backed by evidence. The claim form can be submitted and verified in person or by affidavit, depending on the rules of the jurisdiction. A claim is then verified for eligibility, while rejections can be appealed.

  • Bank Liquidation: if a bank is declared insolvent or cannot continue to operate by statutory decree, it is liquidated and dissolved. Privately owned offshore banks may be well capitalized, but their maturity and asset-liability mismatch continues to exist. Bank liquidation follows local laws, and account holders are governed by the appropriate creditor or insolvency hierarchy. Accounts with balances exceeding the insured limits are considered unsecured and are thus ranked lower in these hierarchies. Almost always, this results in a write-down or haircut on remaining balances.

Creditors are protected by several provisions of bank resolution frameworks. Account holders whose contractual rights have been violated or who feel wronged in any other way are entitled to pursue individual legal action or collective civil action. In order to mitigate losses, account holders should always explore such alternatives. If you would like to learn about alternative resolutions for asset and fund recovery, as well as DGS claim filing procedures, please contact Legal Floris LLC.

Deposit Protection Schemes Have a Limited Time Span – Don’t Be Left Out!

In a nutshell, deposit insurance protects depositors against the consequences of insolvency of credit institutions. It therefore contributes to the stability of the financial system. Each eligible account holder receives the same level of protection. In addition to ensuring legal certainty and transparency, this fixed extent simultaneously holds the financial institution accountable for the unsecured portion of a bank deposit. Deposit protection is therefore the backbone of a reliable and predictable recovery strategy for account holders.

Local lawmakers draft and govern deposit protection schemes. There are different guarantee schemes with different characteristics that lead to gaps and overlaps but also enable opportunities. But there are some things that all deposit protection schemes have in common. These are:

  • Not all bank deposits are considered eligible for deposit protection. There can be exclusions of coverage for activities, account ownership, currency, and source of funds.
  • The application process involves submitting a claim form to the administrator of the deposit protection scheme. Submission must also include a certified government ID, a proof of debt, a proof of claim, and a request for repayment of the insured deposit.
  • Claims must be submitted and verified within a predefined and limited timeframe. After this time, account holders will no longer be able to file a claim with a local deposit protection scheme. A claim made after this time is subject to the terms of the future liquidation, according to local law.

When submitting a DGS claim, account holders cannot afford to make false assumptions that lead to costly mistakes. In every bank resolution, there are claimants who miss deadlines, file erroneous and incomplete claims, or get involved in unnecessary appeal procedures for initial claim rejections. For several years already, this website is considered the place where international bank account holders go to get their DGS claim approved. We were retained by hundreds of account holders in different countries to help them recover their account balance from international banks. These individual and corporate account holders have one thing in common: they want their money back without much hassle. And that is what we help them with!

What to Do Now..? Your DGS Claim!

You have read this far for a reason. Like every other account holder you need effective and efficient strategies to get your account balance repaid. That is what we at Legal Floris LLC, together with our clients want to achieve. Therefore, we take you by the hand, guide you through all recovery options available (collective civil action included) and ensure compliance with all requirements to file successful claims for account balance repayment.

Who we are: Deposit Guarantee Claim is an initiative of Legal Floris LLC. This boutique firm was built on the foundations of specialized education, real-life experience, and a genuine desire to help our clients.  Legal Floris LLC specializes in the financial and legal challenges faced by individuals and corporations in the international financial industry and offshore jurisdictions in particular. You can read more about us here and here.

What we do: we help international bank account holders to recover their account balance held at foreign financial institutions when these are forced to close. Our results-oriented service packages provide straightforward done-with-you systems that save time, frustration and uncertainty and allow our customers to reclaim as much of their money as quickly as possible. These recovery packages are crafted for just one purpose: to ensure that creditors understand what is expected from them and take the appropriate actions to get their money repaid. So if you want to replace stress, worry, anxiety and unpredictability with cutting edge, tested and proven asset recovery strategies in bank failure, then this is for you!

Who we work for: Our customers are individuals and business professionals who hold a bank account abroad. The bank stops operating and they have no access anymore to their account balance and bank facilities. They want, and often need, their money back. Most of our customers are as we say, ‘too large for the napkin and too small for the tablecloth’. They cannot afford to hire an overly expensive high-ticket firm but also cannot retain a generalist. Legal Floris LLC fills this gap as we are specialized in asset recovery for creditors of failed foreign banks.

Our performance based guarantee: we are confident that our recovery strategies deliver results. They are based on a thorough understanding of the applicable legal frameworks, real-life experience and repetitive success. In most bank failures we represent a few hundred account holders, with peaks to over a thousand. As a result we leverage examples and experiences from real claimants for the benefit of others. This is why we can confidently charge our clients for the DGS claim procedures only when their claim is approved and the repayment of their insured account balance is made.

Why we can help you: there is a fairly sizeable group of people like you who we helped in getting their money back from failed banks. By doing so, we are able to understand the scope and interpretation of deposit insurance in various countries. Our customers benefit from this knowledge and experience. This advantage is furthered by a cost-efficient approach so that you pay our reasonable fees only after the insured account balance is repaid to you. Therefore, we are incentivized to assist you in complying with the deposit insurance rules. Our team will be on site to assist with submitting, verifying and settling DGS claims. Your DGS claim will be submitted when the case is strong enough to prove that you are eligible for reimbursement. Depending on your needs, we can help you reactivate your company, open a bank account to receive reimbursements, complete the claim forms, and provide proof of deposit ownership. If the DGS administration requires more information or if claims need to be resubmitted, we help you provide the required information. All of this on the basis of No Cure No Pay…!

As you can see, we have done everything we can to protect your position and assume most of the risk. The next step is yours. When you are ready, here is how to learn more:

  1. Visit:
  2. Call: 00357 25 057 544 or 001 646 513 2855
  3. Email: [email protected]
  4. Complete the contact form: