Good article explaining some of the backend procedures behind KYC (which @Stripe likely doesn't conduct). In this case, they likely had some sort of false positive and should have had a better resolution, but either way shows tools fintech has (and often doesn't use re: nazis)https://twitter.com/theMetz/status/1040810154239844352 …
Stripe is a payments processor, it’s not on them to perform KYC. In any case their customer is the service, not the user. KYC is a per-account matter, not per transaction
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Do the restrictions of e.g. PATRIOT act apply at this level? It is my understanding that the state level laws are not so restrictive, but I may be wrong.
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In any case, the eminent concern is not that the Nazis are laundering money. It’s that they are openly fundraising to support violent acts.
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The article itself was going into unregulated reputational risk to fintect companies. There's proactive non transactional level systems in play now that are prempting patriot act etc banks are implementing without being imposed. Step in the right direction and vie based regs
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And Adam is making a point that also sounds legit which I don't know enough about. My take is that it needs to be thought about re cutouts but Friday night...
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The argument is good but I don’t see it used in practice. And like I’m fairly certain all but a handful of these Nazi fucks could walk into BofA any day and open an account. And that’s the most important check right there.
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When you're right, you're right, cc:
@WellsFargopic.twitter.com/ZfFm3QL10q
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Emily you’re correct in stating that there is a regulatory gap on PPs, and that transaction laundering funds terrorist and hate groups. However, 12 states now have transaction laundering laws with large fines ($2-250k). Fed enforcement is changing fast.
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Yes but we’re talking about deplatforming terror-participating Nazis, not money laundering.
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Yes, it’s called hate group laundering and it’s well known in banking because conventional banks will not accept these customers
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Interesting. I wasn’t aware that was part of the state laws. But I am pretty sure that normal banks do still have these customers. Maybe we should look there.
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It’s definitely the legal responsibility of the banks holding the accounts, and probably on PayPal or whatever intermediary, but not on the network that shuffles transactions
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