All our clients’ funds are safeguarded in segregated accounts with top-tier banks.
This means that in the unlikely event that we become insolvent, the administrator will be able to identify the funds that belong to these customers and these customers claims will be paid from these funds in priority over all other creditors (minus the cost of distributing the funds to meet the customers claims).
Our banking services provide customers an account located in one or multiple of the following locations: United States of America, Europe, United Kingdom.
Funds held in United Kingdom / Europe
These funds have been appropriately safeguarded as required by The Electronic Money Regulations 2011 and The Payment Services Regulations 2017.
Funds held in United States of America
These funds are held with Cross River Bank; FDIC member and a United States of America chartered and regulated financial institution, that is regulated by the U.S. Security and Exchange Commission.
What is FDIC insurance?
The Federal Deposit Insurance Corp. (FDIC) is the agency that insures deposits at member banks in case of a bank failure. FDIC insurance is backed by the full faith and credit of the U.S. government.
The FDIC insures up to $250,000 per depositor, per FDIC-insured bank, per ownership category. This guarantees that their money is safe, as long as it’s within the limits and guidelines.
What does FDIC insurance cover?
FDIC insurance covers traditional bank deposit products, including checking accounts, savings accounts, certificates of deposit and money market deposit accounts.
The insurance covers up to $250,000 in deposits, per depositor, per FDIC-insured bank, per account ownership category. If an account holder has more than $250,000 on deposit across several accounts at a single bank, in their name alone, anything over $250,000 is not insured.
How the FDIC pays you back after a bank fails?
Depositors do not need to file insurance claims to recoup their deposits. Nor do they need to apply for deposit insurance when they open up a bank account at an FDIC-insured institution.
When a bank fails, the FDIC pays depositors by giving them an account at another insured bank in the amount equal to what they had at the failed bank, up to the insurance limits. Or, it simply issues the depositor a check.
This usually happens the next business day or within a few days. In some cases, the FDIC has to review an account to determine how much is covered before it reimburses the account holder.
It can take a few years to recover deposits that exceed the insurance limit. As the FDIC sells off a failed bank’s assets, it issues periodic payments to depositors. Funds that exceed insurance limits are repaid on a cents-on-the-dollar basis.
More information can be found on the FDIC website: www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance/