>Why is any attempt at financial privacy deemed money laundering? Why does making any tool that help law abiding citizens have financial privacy, also guilty of money laundering?
These are untrue absolutes.
These are untrue absolutes.
You could store cash/gold in an anonymous safe deposit, but FBI raid and steal this. You cant fly with large cash because again feds steal it. You can't carry it out the country in large without reporting it.
Crypto, same story, KYC at the exits and P2P offramp actors getting treated as 'unlicensed money transmitter' etc which again triggers KYC.
Quickly you realize it's about shutting off all the exits of privacy, not money laundering which only has increased cost consolidating power to more dangerous organizations.
Non sequitur. Banks generally have to have KYC to do business, though there are famous exceptions in history. There is no jurisdiction I know of in which as a customer not providing KYC is itself a crime.
The law here notes even some CFRs are criminally binding, the CFRs explicitly require certain identification.
What happens if the banks don't close it?
Example? Every one I can think of involved the bank not doing KYC, criminals taking advantage of it, and evidence at least some people at the bank knew what was happening. (Usually because authorities told the bank they were doing business with criminals and the bank responded by shuffling things around so they could continue doing that business.)
The difference is if the bank does KYC and the criminal uses a dark identity, the bank will likely get away with it. If the bank just gives each person a random number as their only identifier like the old swiss accounts, then they'll be warned sanctioned entities are using it and ultimately prosecuted when they fail to KYC (i.e. similar but but identical to CZ).
What is a dark entity? Have you worked in finance? Because if you collect KYC and accepted forged or faulty documents, the moment you figure out what's going on is the moment you call your personal lawyer.
Sure. If you're at a financial institution and accept that documentation, you're personally in for a world of hurt. Doesn't mean it doesn't happen, either due to someone being negligent, overworked or happy to look the other way. But if it's caught, it's not great for the individual. (The bank will survive after paying a fine unless it's systemic.)
Sure. But if the addict you mentioned's account goes from overdrafting every few weeks to holding millions of dollars, that should set off internal alarms.
Otherwise, what are you expecting? Direct taxation isn’t really compatible with ‘financial privacy’ and never was.
So you will fail the disclosure and the bank will flag you in the shared blacklist DBs, they close your accounts and you are out of the system. This is happening enmasse to people who invested in and cashed out of real estate abroad(asia/africa/sa) some time ago. I imagine it's the same with foreign stock markets. And you never know what will be required 20 years in the future, thus most financial advisors discourage "moving money around". They even have a whitelist of brokers, stocks and jurisdictions, anything outside that is uninvestable for normal people just because of KYC/AML paperwork requirements.