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FAQs
Learn More About Deltec Below
What is Deltec's History?
Deltec was founded in 1946 in Brazil, as a spin-off of Kidder-Peabody, at the initiative of Albert H. Gordon (1901-2009), the rebuilder of Kidder-Peabody as a force in the investment banking world after the Great Depression. He selected Clarence Dauphinot, an innovator and unconventional builder of businesses, to form and lead Deltec. He remains very present within the Deltec Group’s spirit, some 75 years later.
In Brazil, Deltec did the first ever IPO in the country and achieved significant successes in investment banking that, as a result, attracted other businesses, entrepreneurs, and builders. The business soon evolved into an ‘investor’s club’, the precursor of today’s ‘family office’.
In 1957, Deltec moved its operations to The Bahamas and in 1959, Deltec became regulated as a bank in The Bahamas. In 1961, Deltec Bank’s license was extended to become a Trust company, resulting in a renaming to Deltec Bank & Trust Limited.
Deltec’s shareholders, in the early days, included a number of prominent U.S. investment banks and European financial institutions (including Morgan Stanley and Goldman Sachs), each of whom had a small shareholding to express their interest in the financing activities of Deltec. Given its origin and ongoing appetite for innovative business, Deltec forged a reputation as an innovator in structuring solutions and investment opportunities.
From 1961 to 1995, under the leadership of Clarence Dauphinot, Deltec helped to grow many businesses, with a special focus on developing markets, especially South America. As such, Deltec has a long history of financing, private equity, investment banking, trade-finance, trading, private banking, and corporate banking globally.
From 1989 to 1995, Deltec became one of the largest worldwide holders and traders of Brady Bonds, participating actively in the restructuring of the Latin American debt owed to the USA. During this same period Deltec extended its operations to New York, Tokyo, Hong Kong, Milan, London, alone or in partnership with groups such as Nomura (Japan).
Unfortunately, in 1995 Clarence Dauphinot passed away suddenly, leaving the company orphaned and in need of a real-time pivot in leadership transition. From 1995 to 2010, in the absence of a true innovative leadership spirit, the activities slowly reduced to traditional private banking, centered mostly on funds allocation and management. The company either closed or sold all of its non-Bahamas based entities, culminating with the sale of Atlas Capital, a UK based fund-of-funds. In 2010, Deltec had only 300 remaining clients, with less than $1.7b in total AUM.
From 2011 onward, driven by a few key shareholders, Deltec introduced new management and initiated a development strategy to renew the spirit of innovation that had contributed to its notable successes, strong reputation, and goodwill in the past. This effort surpassed the thriving Deltec of old.
Today, the group manages directly or indirectly over $5b in AUM/AUA and growing. It has over 100 employees at present.
Where is Deltec Bank Located?
Deltec Bank is headquartered in Nassau, Bahamas. It’s office is located in the western district of Lyford Cay in Nassau.
Is Deltec Bank Regulated?
Deltec Bank is regulated by the Central Bank of the Bahamas the Securities Commission of The Bahamas.
Who owns and runs Deltec Bank?
Deltec Bank & Trust Limited is 100% owned by Deltec International Group and its employees.
All direct and day-to-day operations of Deltec Bank are managed by CEO, Odetta Morton.
Where are client assets held?
In a trust and custody bank model such as ours, client assets are held in a fiduciary capacity. This means that we owe our clients, the beneficiaries, the highest standard of care under the law, placing their interests ahead of our own.
As such, these deposits are not reflected on the balance sheet and are protected from any threats and are fully disclosed in annual auditors’ reports. This differs from commercial bank models, which are driven by on-balance-sheet customer deposits.
How Does Deltec Bank prevent fraud?
As a leading financial institution operating from within The Bahamas, Deltec Bank has an unwavering commitment to good corporate governance practices, regulatory compliance, and unparalleled risk management in the course of conducting its business. Deltec Bank is FATCA and CRS compliant, having a robust AML/CFT/PF framework which incorporates stringent KYC, due diligence and onboarding processes.
Additionally, Deltec’s approach to AML/CFT/PF does not end with proper onboarding but carries throughout the lifespan of client relationships with ongoing monitoring of transactions and relationships, frequent KYC, and risk reviews as well as daily screening of its client database against financial crime databases, such as ComplyAdvantage and WorldCheck.
Deltec Bank is fully regulated and audited, and its conservative strategy and commitment to clients still serve as two of its many advantages – well-capitalized and no debt. These prudent practices and strong governance ensure that there is no threat to the Bank’s sustainability, safety, and soundness.
Deltec Bank works with its regulators on a continuous basis and has strong internal AML/CFT and Know-Your-Client (KYC) procedures, applied without compromise, to preserve the financial and reputational integrity of Deltec Bank and its supervising jurisdiction, The Bahamas.
