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What forces do you think are capable of causing leaders at financial institutions to internalize the cost of criminal banking activity such that they adequately
by montagg 6y ago
What forces do you think are capable of causing leaders at financial institutions to internalize the cost of criminal banking activity such that they adequately prevent it?
- SpicyLemonZest 6y agoI don't agree with the premise. The way to fight criminal banking activity is to write clear, straightforward, and consistently enforced laws. No system of incentives is going to meaningfully reduce financial crime in a world where grey areas are gigantic and almost all cases end with a settlement.
- bitcoinbutter 6y agoYou can try to write all the laws you want, eventually it boils down to manually reviewing a ton of transactions and everyone loses. The bank needs to pay for growing compliance departments, customers are scrutinized on a growing number of transactions. Small businesses who are in higher risk industries, however that is chosen to be defined, become inundated with KYC tasks. Every transaction needs an accompanying stack of documents showing the entire trail. Finance is becoming a bureaucratic hellhole which disproportionately affects lower income people and small businesses. If you don't have a hired compliance agent you will spend your time as a business owner complying to endless demands for onboarding/KYC/transaction reporting.