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As ar as I know PayPal in Europe is a bank with a Luxembourg banking license. I'm wondering if they could pull the same shitty here. Considering that any bank,

As ar as I know PayPal in Europe is a bank with a Luxembourg banking license. I'm wondering if they could pull the same shitty here. Considering that any bank, which freezes your account, doesn't provide you with any reason and actually refuses to talk to you may draw quite some ire from their respecive regulator.

manuelmagic 7y ago
Where is it "here"?
- Arnt 7y ago
  Any location where a Luxembourg bank license applies, ie. most of Europe, from Iceland to Greece.
NeedMoreTea 7y ago
Which is exactly what banks do if they decide someone is on the terrorism blacklist, or you are "risky" - often on absurdly weak grounds. Mistaken identity or not, guilty or not, it seems to leave the customers with no options. Freezing funds only seems to happen with terrorism related closures, but it does happen, and the bank is judge, jury and executioner. One instance from search: https://www.theguardian.com/money/2018/feb/03/natwest-closed-my-account-with-no-explanation https://www.theguardian.com/money/2018/feb/03/natwest-closed...
- CaptainZapp 7y ago
  Not quite the same thing. From the article you link to : You’ve been a loyal customer for years, but then a letter arrives saying your bank has decided it will shut your accounts, and you will have to take your business elsewhere. No reason is given and the decision is final. So, yeah; a bank can get rid of you for any and no reason at all. But they can't just keep your money and stop talking to you. That's nothing really new. Ask any American citizen trying to open an account abroad. They may be having an unusual hard time thanks to FATCA.[1] [1] https://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act https://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance...
- mcs_ 7y ago
  > Freezing funds only seems to happen with terrorism related closures Try add the word Bet next time in the transfer's detail...
  - Double_a_92 7y ago
    Or Cuba
- blunte 7y ago
  But as a "bank" there must be some requirement to provide a human interface for resolving these cases.
- elliekelly 7y ago
  Banks only do this because the Bank Secrecy Act/USA PATRIOT Act makes it exceedingly risky for them not to. In addition to the bank's regulatory risk there's also potential personal liability for the individual serving as Anti-Money Laundering Officer. That strongly incentivizes an AML program that's overly cautious. It might seem like the bank is "judge, jury, and executioner" but that's really not the case. In addition to freezing your funds the bank has to alert the federal government of the account. The government then decides whether to move forward and try to seize the funds or whether the bank can release them to the account owner.
SilasX 7y ago
In sharp contrast with spammers, which are given such free reign under GDPR? (In the comments it turns out it's a spam service.)

manuelmagic 7y ago

Where is it "here"?

Arnt 7y ago
Any location where a Luxembourg bank license applies, ie. most of Europe, from Iceland to Greece.

NeedMoreTea 7y ago

Which is exactly what banks do if they decide someone is on the terrorism blacklist, or you are "risky" - often on absurdly weak grounds. Mistaken identity or not, guilty or not, it seems to leave the customers with no options. Freezing funds only seems to happen with terrorism related closures, but it does happen, and the bank is judge, jury and executioner. One instance from search: https://www.theguardian.com/money/2018/feb/03/natwest-closed-my-account-with-no-explanation https://www.theguardian.com/money/2018/feb/03/natwest-closed...

CaptainZapp 7y ago
Not quite the same thing. From the article you link to : You’ve been a loyal customer for years, but then a letter arrives saying your bank has decided it will shut your accounts, and you will have to take your business elsewhere. No reason is given and the decision is final. So, yeah; a bank can get rid of you for any and no reason at all. But they can't just keep your money and stop talking to you. That's nothing really new. Ask any American citizen trying to open an account abroad. They may be having an unusual hard time thanks to FATCA.[1] [1] https://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act https://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance...
mcs_ 7y ago
> Freezing funds only seems to happen with terrorism related closures Try add the word Bet next time in the transfer's detail...
- Double_a_92 7y ago
  Or Cuba
blunte 7y ago
But as a "bank" there must be some requirement to provide a human interface for resolving these cases.
elliekelly 7y ago
Banks only do this because the Bank Secrecy Act/USA PATRIOT Act makes it exceedingly risky for them not to. In addition to the bank's regulatory risk there's also potential personal liability for the individual serving as Anti-Money Laundering Officer. That strongly incentivizes an AML program that's overly cautious. It might seem like the bank is "judge, jury, and executioner" but that's really not the case. In addition to freezing your funds the bank has to alert the federal government of the account. The government then decides whether to move forward and try to seize the funds or whether the bank can release them to the account owner.

SilasX 7y ago

In sharp contrast with spammers, which are given such free reign under GDPR? (In the comments it turns out it's a spam service.)