Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Money Laundering and AML Compliance

bitsaboutmoney.com

Post reply on HN
Print view View original

101–110 of 218 posts

Re: Money Laundering and AML Compliance

#101

Post by patio11 »

datavirtue wrote: post #93

Nowhere these articles written by chatGPT? If an editor were involved the articles would be about a paragraph each or they they would have been put through the shredder. I have been in the industry for years. The author said nothing enlightening or important.

Thank you for taking the time to provide your feedback. I appreciate your perspective and years of experience in the industry. ... I apologize if the articles did not meet your expectations. Thank you for your comment, and I hope you will continue to engage with the content in the future.

Re: Money Laundering and AML Compliance

#102

Post by wpietri »

pjkundert wrote: post #2

Governor Tarkin: Princess Leia, before your execution, you will join me at a ceremony that will make this battle station operational. No star system will dare oppose the Emperor now. Princess Leia: The more you tighten your grip, Tarkin, the more star systems will slip through your fingers. Every government and central bank in the world is tightening their grip around the tiniest transactions of their citizenry. In t…

I think it's appropriate you open with Star Wars, as this is mainly fantasy.

> burdening 8 billion law-abiding Citizens with impossibly complex and arduous KYC/AML requirements

Not sure if you read the article, but they just aren't a significant burden for most people. They could be better, sure.

And I think the "driven to use Cryptocurrency" example does not pair at all well with FTX. The massive wave of cryptocurrency failures from Mt Gox to FTX demonstrate beautifully why an unregulated financial system is a terrible idea.

Re: Money Laundering and AML Compliance

#103

Post by JumpCrisscross »

irusensei wrote: post #23
JumpCrisscross wrote: post #14

Earlier quoted context omitted.

> annoy him so much with retarded requirements he will leave by himself This is rare. It may be the effect. But plenty of financial institutions openly deny risky accounts; no need to needlessly spin wheels. Your broader point is correct, however. Because of the risk, a lot will be demanded. Because of the reward, nobody is motivated to push back on compliance.

> This is rare. I have a funny passport so some institutions are often probing my life and the source of my funds. The criminal records translated to english (I’m not from an english speaking country, I don’t live or work on an english peaking country) happened to me. I also had a chat with a polish woman who told me that UK banks required documents about her grandparents nationality when she went there for study cir…

Point is nobody is generating meaningless requests to push someone away. They can just push them away. The tediousness arises from not giving a shit, not outright malice.

Re: Money Laundering and AML Compliance

#104

Post by wpietri »

exbanker wrote: post #30
timerol wrote: post #20

Earlier quoted context omitted.

> burdening 8 billion law-abiding Citizens with impossibly complex and arduous KYC/AML requirements TFA notes that "This will affect the typical user of the financial system precisely zero times during their lives." It is very much not a complex and arduous situation in most instances, only in very few edge cases. (Which patio11 wants us to pay closer attention to.) I had occasion to unexpectedly transfer $10k over A…

This is just factually untrue. AML policies unjustly affect millions of Americans. At US Bank, you can’t deposit cash without an ID which is standard post 2018 or so. Yet go to a US Bank in a low income area, deposit $100 in a family member’s account and they will ask for ID, social security number and your job. US Bank has been involved in multiple money laundering scandals leading to deferred criminal prosecution.…

> This is just factually untrue. AML policies unjustly affect millions of Americans.

If it's that clearly untrue, presumably you can document this?

And I'll note that even if you can, it doesn't necessarily contradict what you're replying to, which was, "This will affect the typical user of the financial system precisely zero times during their lives."

With 330 million residents, millions of people could have KYC/AML problems and patio11 still could be right. I've never had a problem like that, and have only heard one person ever mention it. And he was an Australian trying to open a US bank account to get around certain Australian import taxes, so I suspect he was somebody who should have been having problems.

Re: Money Laundering and AML Compliance

#105

Post by patio11 »

wcunning wrote: post #15

The best thing I've read on this topic is from Matt Levine at Bloomberg, restated in his newsletter on Wednesday: "In general, the chief compliance officer at any company has a dial in front of her that she can turn to get More Crime or Less Crime, and at a normal company — a bank, for instance — her job consists of (1) turning it most of the way toward Less Crime, but (2) not all the way, and (3) acting very contrit…

I also think this is a very important mental model for the job to be done of Compliance departments, and I think I cited it in the KYC piece.

Re: Money Laundering and AML Compliance

#106

Post by alliao »

pyuser583 wrote: post #18
irusensei wrote: post #4

It is expensive to keep a crime and corruption department on your banking institution. If you are dealing with a millionaire who is related to some oil mogul in Russia you can do your due diligence and Vladimirovich can hire a team of accountants to prove that his business is legit and not at all related to the corporativist oligarchy his uncle runs. Or it might be, but the risk vs reward is good enough to turn a bli…

There’s a really great book called Kleptopia by T. Burgis. It’s about how wealthy oligarchs use the Western legal and banking systems. He points out that the US financial system is squeaky clean. Oligarchs wind up in prison because they think they can pull the crap in New York that they pull in London. But outside the financial sector it’s the 100% opposite. Americas permissive corporate transparency lets assets vani…

ever since US broke Switzerland by snooping via UK's help US determined to harbour all the world's dirty money... big fries only though and AML is just an extension to this..

SWIFT and Swiss don't just give up client data easily and yet they did due to US had exact names and details of every transaction, I recall some said fibre optic was tapped. too bad I left London soon after GFC there was a tonne of high quality gossip fun times.

Re: Money Laundering and AML Compliance

#107

Post by Our_Benefactors »

notch898a wrote: post #77
JusticeJuice wrote: post #72

Earlier quoted context omitted.

> Ban the US gov from the finance system At the cost of what, cutting of millions of people from benefits? Public servants not getting paid?

Do you protest when a hitman can't do another hit or access his corrupted proceeds to pay his maid or or pay his kid's dental bills? If you are an employee or dependent of a violent organization, the 'unfortunate' effect is someday people may no longer want to do businesses with that organization or its corrupted money.

> Do you protest when a hitman can't do another hit or access his corrupted proceeds to pay his maid or or pay his kid's dental bills?

No, I would not protest freezing the account of a hitman. Now please show me how I can hire a govt sponsored hitman with USD and I’ll lend your argument some credence.

Re: Money Laundering and AML Compliance

#108

Post by patio11 »

skybrian wrote: post #82
psobot wrote: post #3

Every post from patio11 is such a joy to read: precise, exact, descriptive, and entertaining. I'd love to understand where his writing style comes from and how to emulate it.

I think it's a witty and knowing but rather opaque writing style that's designed to make you work. Often worth the effort, but he could use an editor or beta tester to help dial it back a bit. There were a few times when I almost sent him a tweet that he got some logic backwards, but after rereading, I realized that I had misread it, that it's right but confusing.

I hope to hire an editor one of these days, but some of my characteristic style is intentional and some is just a reflection that the production function is "Crikey I've put the kids to bed and now have checks watch four hours to write prior to my effective deadline."

Re: Money Laundering and AML Compliance

#110

Post by e28eta »

> In part this is because some Americans in the financial industry will involve HR if you describe money as having a color other than green. There are, of course, many speakers of English for whom the history and current relevance of U.S. race relations do not pose strong concern relative to, for example, domestic public corruption

I’m disappointed this is the way patio11 chose to summarize why we’re reducing the usage/connotations of “white = good; black = bad” in various contexts.

Post reply on HN