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Money Laundering and AML Compliance

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Re: Money Laundering and AML Compliance

#131

Post by habinero »

pjkundert wrote: post #117
wpietri wrote: post #102

Earlier quoted context omitted.

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 cryptocurre…

No, you aren’t burdened. The bulk of humanity is, though. The compliance costs in terms of effort/time/money expended per dollar of revenue affected is probably 10x to 100x for them, as it is for you. This has been my experience, and my observation across many life stories. I taught basic finance to hundreds of mid- to low-income families in the 2000’s. So again - a “let them eat cake” admonishion. And FTX was just a…

Well, there was that entire huge NFT crypto scam bubble.

To a first and probably second approximation, crypto is only good for getting scammed and scamming others. There's a lot of overly credulous people in the field, which just attracts crime like a moth to a flame.

Re: Money Laundering and AML Compliance

#132

Post by AlbertCory »

yieldcrv wrote: post #122
AlbertCory wrote: post #66

Earlier quoted context omitted.

Do you mean KYC now, or what passed for KYC in the 20s? Before he got busted by the Feds, he went to baseball games and posed for pictures, and "respectable" people might be seen with him. I don't think he'd ever have been invited to the White House, though. As someone else here said: no, the "reputational risk" would doom him now.

this is so cute I dont even want to bother explaining it How are we on a KYC thread, with people that actually do KYC, believing their koolaid They see the accounts They know the gaps in the regulatory framework, or should They should know the pointlessness of this exercise but apparently the idealism (or a couple internal examples I’m unaware of) is convincing still and masquerades as reality KYC is as strong as the…

no idea what you're talking about, but anyway: bye!

Re: Money Laundering and AML Compliance

#133

Post by etherael »

wpietri wrote: post #126
etherael wrote: post #121

Earlier quoted context omitted.

So crime was not at a manageable level prior to say 1970, when none of these AMLKYC laws existed? And crime has not been at a manageable level after say 2008 when crypto came into existence and made it impossible to actually enforce? Man, for that brief shining window we really had perfection.

Yes, actually, the American mafia has declined severely since its heyday. There are surely many reasons, as it's part of a broader decline in crime in recent decades, but the increased difficulty of cleaning dirty money is part of it. And crime has definitely gone up because of cryptocurrency. I'm not sure how much it has affected the more traditional sorts of crime, as I don't think it's much of a help in turning di…

Specific instances in the decline in power of particular organised criminal enterprises is much more believable than "crime", I'll grant that much.

Re: Money Laundering and AML Compliance

#134

Post by throwaway4341 »

habinero wrote: post #127
icelancer wrote: post #90

Earlier quoted context omitted.

I'm also debanked, but sporadically, and weirdly at only some investment institutions. Fidelity outright banned me and demanded I call in to withdraw my money between absurd hours. I sent them an intent to file a lawsuit and I got my money wired within 48 hours. Vanguard and TD Ameritrade have no problem taking my money. I'm also banned at Zelle, but Venmo and CashApp and Paypal are all fine. What a weird world. Of c…

I'm sure you know exactly what shady thing you did to get yourself banned.

[flagged]

Re: Money Laundering and AML Compliance

#135

Post by pjkundert »

habinero wrote: post #131
pjkundert wrote: post #117

Earlier quoted context omitted.

No, you aren’t burdened. The bulk of humanity is, though. The compliance costs in terms of effort/time/money expended per dollar of revenue affected is probably 10x to 100x for them, as it is for you. This has been my experience, and my observation across many life stories. I taught basic finance to hundreds of mid- to low-income families in the 2000’s. So again - a “let them eat cake” admonishion. And FTX was just a…

Well, there was that entire huge NFT crypto scam bubble. To a first and probably second approximation, crypto is only good for getting scammed and scamming others. There's a lot of overly credulous people in the field, which just attracts crime like a moth to a flame.

Ah, I think I’m beginning to understand…

Selling worthless copies of GIFs to people by claiming they’re totally gonna appreciate in value: Crypto

Immutable, unforgeable and universally provable transmission of proof of ownership of real valuable consideration/property: Crypto

Perhaps one of these is a scam, and the other is a valuable business transaction?

Nah.

Re: Money Laundering and AML Compliance

#136

Post by quelltext »

super256 wrote: post #84
pyuser583 wrote: post #18

Earlier quoted context omitted.

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…

The USA is the only economically significant country that opts out of participating in the Common Reporting Standard (CRS) data exchange. The USA claim that FACTA is enough. This puts the USA in the unique position where it only receives information from other countries through FACTA and its IGAs, without providing any information in return. Why doesn't it provide information in return? Well, only specific bank accou…

    Well, only specific bank accounts are subject to FACTA:
    
    ...
    
    Investment accounts and custodial accounts (of individuals and entities), even when they are a resident in the FACTA partner country. This is true, as long as the custody account doesn't have income flows into this accounts (eg dividends or interests).
You say that investment accounts are subject to FACTA, but not anymore if dividends or interest earnings flow in? I'm confused.

Re: Money Laundering and AML Compliance

#137

Post by [deleted] »

notch898a wrote: post #44
ClumsyPilot wrote: post #42

Earlier quoted context omitted.

> good technology like Monero remains marginalized instead of replacing the USD as it should. Imagine you achieve your Crypto-dream, known mass murderers like the head of Wagner or Kadyrov will move money with impunity. Current system is problematic, but I don't fancy the idea of money being conpletely untouchable by the system of justice

Yeah then law enforcement would actually have to catch Kadyrov for you know, murdering civilians rather than for moving money. That sounds awful.

[deleted]

Re: Money Laundering and AML Compliance

#138

Post by EVa5I7bHFq9mnYK »

AML and KYC really took ground around 2001. The 9/11 was the pretext, but the real reason was because there was now a technical possibility to electronically track all the transactions.

How we managed to live and fight crime without it for the previous millennia is a mystery.

Re: Money Laundering and AML Compliance

#139

Post by EVa5I7bHFq9mnYK »

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.

Stopped reading those articles long ago. Straight to the comments section.

Re: Money Laundering and AML Compliance

#140

Post by szszrk »

A bit of a quick side story: A bank I worked for set up a lock for all business sites on their firewalls and WAF for any IP geolocalized as Russian. It just dropped or rejected all network packets completely. Individuals could still use their service, though.

It was like that since at least a decade ago, since original Russian attack on Ukraine and I have not heard of any issues they run into with that approach.

The just went "no".

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