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Ironically, I stopped using Western Union ten years ago because of all the completely inappropriate and personal questions they would ask whenever I tried to do

Ironically, I stopped using Western Union ten years ago because of all the completely inappropriate and personal questions they would ask whenever I tried to do a transaction. Questions that I would expect during airline screening and international travel - but not for a company who wants to win customers and business. It happened in enough destinations and different offices that I feel it had to be a policy.

digler999 10y ago
I just used WU 2 months ago for a $400 international transaction and I wasn't asked anything other than to whom and where I wanted to send it. My beef is with paypal: the company that wants to look and act like and do everything that a bank does, but without all those pesky bank regulations designed to protect the customer. I quit using them 10 years ago.
- tananaev 10y ago
  I guess it depends on the country. For example, in Russia PayPal is registered as a bank, so it has to comply with all regulations.
olegkikin 10y ago
It's not WU's fault. If it were up to them, they would let you transfer your money to whoever, and take their (massive) cut. It's the KYC (CIP) and AML laws. https://en.wikipedia.org/wiki/Know_your_customer https://en.wikipedia.org/wiki/Know_your_customer https://en.wikipedia.org/wiki/Customer_Identification_Program https://en.wikipedia.org/wiki/Customer_Identification_Progra... https://en.wikipedia.org/wiki/Money_laundering#Anti-money_laundering_measures_by_region https://en.wikipedia.org/wiki/Money_laundering#Anti-money_la...
- AnthonyMouse 10y ago
  Whether it's their fault or not, they're still going to lose legitimate business because of it.
  - dmix 10y ago
    But think of the money laundering it's stopping! > The Economist estimated the annual costs of anti-money laundering efforts in Europe and North America at US$5 billion in 2003, an increase from US$700 million in 2000. > There is no precise measurement of the costs of regulation balanced against the harms associated with money laundering, and given the evaluation problems involved in assessing such an issue, it is unlikely that the effectiveness of terror finance and money laundering laws could be determined with any degree of accuracy. > One commentator wrote that "[w]ithout facts, [anti-money laundering] legislation has been driven on rhetoric, driving by ill-guided activism responding to the need to be "seen to be doing something" rather than by an objective understanding of its effects on predicate crime. The social panic approach is justified by the language used—we talk of the battle against terrorism or the war on drugs". https://en.wikipedia.org/wiki/Money_laundering https://en.wikipedia.org/wiki/Money_laundering I'm curious if the drug war ended how much utility it would provide...
cm2187 10y ago
Recently I wanted to transfer money to my broker account to make some investments. The branch manager of my bank got involved and locked the funds until I provided them some proof that I would indeed use these funds for an investment. How do I do that? Do I get a letter from my mom certifying that I have the honest intention to buy amazon shares???
- sbov 10y ago
  When my bank makes me jump through some extra hoops it makes me sleep a little better at night knowing that its a little harder for people to steal my life savings. Even with these hoops it's scary to me how easy it is to transfer tens, or hundreds of thousands of dollars.
  - mixmastamyk 10y ago
    Nice perspective, thanks.
- digler999 10y ago
  did you do it via wire or ACH and did you initiate it through your broker or your bank? Perhaps what happened is your bank saw this other bank (your brokerage that you maybe rarely use) try to make a huge ACH withdrawal to your account. The amount is probably way bigger than you normally transfer so they're trying to protect you. If thats the case, what might be easier is tell your bank "ok cancel the transfer", then get your brokerage's bank wire information, physically go to your bank, and initiate a "fed wire transfer" to your brokerage. Fed wire is like moving physical cash, it hits your account in minutes (not overnight like ACH usually is, and no "available balance" vs pending deposit bs)and is absolutely final. And if your bank refuses to move your money when you walk up in line and show them your ID, get a new bank.
  - cm2187 10y ago
    No in this case it was KYC, not fraud prevention. They wanted to check I wasn't going to use the funds for bad activities. But they backed down when I mentioned the note from my mum and they realised they were being unreasonable.

digler999 10y ago

I just used WU 2 months ago for a $400 international transaction and I wasn't asked anything other than to whom and where I wanted to send it. My beef is with paypal: the company that wants to look and act like and do everything that a bank does, but without all those pesky bank regulations designed to protect the customer. I quit using them 10 years ago.

tananaev 10y ago
I guess it depends on the country. For example, in Russia PayPal is registered as a bank, so it has to comply with all regulations.

olegkikin 10y ago

It's not WU's fault. If it were up to them, they would let you transfer your money to whoever, and take their (massive) cut. It's the KYC (CIP) and AML laws. https://en.wikipedia.org/wiki/Know_your_customer https://en.wikipedia.org/wiki/Know_your_customer https://en.wikipedia.org/wiki/Customer_Identification_Program https://en.wikipedia.org/wiki/Customer_Identification_Progra... https://en.wikipedia.org/wiki/Money_laundering#Anti-money_laundering_measures_by_region https://en.wikipedia.org/wiki/Money_laundering#Anti-money_la...

AnthonyMouse 10y ago
Whether it's their fault or not, they're still going to lose legitimate business because of it.
- dmix 10y ago
  But think of the money laundering it's stopping! > The Economist estimated the annual costs of anti-money laundering efforts in Europe and North America at US$5 billion in 2003, an increase from US$700 million in 2000. > There is no precise measurement of the costs of regulation balanced against the harms associated with money laundering, and given the evaluation problems involved in assessing such an issue, it is unlikely that the effectiveness of terror finance and money laundering laws could be determined with any degree of accuracy. > One commentator wrote that "[w]ithout facts, [anti-money laundering] legislation has been driven on rhetoric, driving by ill-guided activism responding to the need to be "seen to be doing something" rather than by an objective understanding of its effects on predicate crime. The social panic approach is justified by the language used—we talk of the battle against terrorism or the war on drugs". https://en.wikipedia.org/wiki/Money_laundering https://en.wikipedia.org/wiki/Money_laundering I'm curious if the drug war ended how much utility it would provide...

cm2187 10y ago

Recently I wanted to transfer money to my broker account to make some investments. The branch manager of my bank got involved and locked the funds until I provided them some proof that I would indeed use these funds for an investment. How do I do that? Do I get a letter from my mom certifying that I have the honest intention to buy amazon shares???

sbov 10y ago
When my bank makes me jump through some extra hoops it makes me sleep a little better at night knowing that its a little harder for people to steal my life savings. Even with these hoops it's scary to me how easy it is to transfer tens, or hundreds of thousands of dollars.
- mixmastamyk 10y ago
  Nice perspective, thanks.
digler999 10y ago
did you do it via wire or ACH and did you initiate it through your broker or your bank? Perhaps what happened is your bank saw this other bank (your brokerage that you maybe rarely use) try to make a huge ACH withdrawal to your account. The amount is probably way bigger than you normally transfer so they're trying to protect you. If thats the case, what might be easier is tell your bank "ok cancel the transfer", then get your brokerage's bank wire information, physically go to your bank, and initiate a "fed wire transfer" to your brokerage. Fed wire is like moving physical cash, it hits your account in minutes (not overnight like ACH usually is, and no "available balance" vs pending deposit bs)and is absolutely final. And if your bank refuses to move your money when you walk up in line and show them your ID, get a new bank.
- cm2187 10y ago
  No in this case it was KYC, not fraud prevention. They wanted to check I wasn't going to use the funds for bad activities. But they backed down when I mentioned the note from my mum and they realised they were being unreasonable.