5 ms·

It is not useless. Countries love money laundering when the money is coming from overseas and the crime happened not in their jurisdictions. It's free money tha

by csomar 6y ago

It is not useless. Countries love money laundering when the money is coming from overseas and the crime happened not in their jurisdictions. It's free money that circulates in the economy, pays some taxes and help their exchange rate. The only reason some of these money laundering hot spots (like Hong Kong or the Emirates) started clamping down on these operations is that the USA and Europe pressured them to. Switzerland removed its secrecy because of FATCA, not because they wanted to. This law passed because 1. The regulator do not care about small guys; 2. They don't think small guys are moving that much money and are more trouble than profit; and 3. It looks like they are doing something. It also helps employ some people and maintain big cities real-estate by fake restaurants or shops. Ever wondered how some of these joints are able to pay rent and employees with so little customers?

danenania 6y ago
"Ever wondered how some of these joints are able to pay rent and employees with so little customers?" I have always wondered about this. In Manhattan, for example, you fairly frequently hear about restaurants that seem to be popular and busy all the time closing because they couldn't keep up with rent increases. And yet it's also somehow full of corner stores, gift shops, laundromats, pizza places, Chinese restaurants, lunch buffets, etc. etc. that no one ever seems to go into and have 2 stars on Yelp, but are still there year after year. I figured that in some cases it could be a family that owns the building or a sweetheart lease deal or whatever, but there are just so many that it doesn't seem to add up.
- coliveira 6y ago
  In many cases they own the location and think it is a reasonable way to defer property costs, which maintaining ownership. But you're right, there are also shady operators that are making money in illegal ways.
giardini 6y ago
"small guys" ? Like the Roman Catholic Church, which likely has been moving it's money and holdings, just as it moves its guilty priests around, to hide them all so the pedophile lawsuits cannot get to it? Exempting churches was a terrible, terrible mistake.
- kenned3 6y ago
  Exempting churches was a terrible, terrible mistake. especially from a country with clear "separation of church and state" rules, except "in god we trust" on the money. No surprise they granted the churches the exemption, and stronly agree they should NOT have gotten the exemption given their own well documented corruption.
  - ianai 6y ago
    It probably wouldn’t get bipartisan support without the exception though. It’s not perfect legislation and none is, but at least it’s a start.
    - coliveira 6y ago
      Of course, evangelicals are the biggest beneficiaries of church fraud. They open a new "church" every day, for the purpose of hiding their money producing assets: seminar companies, show business, book publishing, TV and radio.
  - TheCoelacanth 6y ago
    There's a pretty simple reason why churches and other non-profits are exempt. They don't have any owners, so they can't disclose who their owners are.
- coliveira 6y ago
  Completely agree, especially because in this country is so each to open a new "church". One thing is to have legitimate churches, like the catholic or the protestant (whatever you think of them), another is to allow the creation of new "churches" so easily. It is a recipe for money laundering and a platform for con men (most of them are known as TV preachers).

by csomar 6y ago

danenania 6y ago

"Ever wondered how some of these joints are able to pay rent and employees with so little customers?" I have always wondered about this. In Manhattan, for example, you fairly frequently hear about restaurants that seem to be popular and busy all the time closing because they couldn't keep up with rent increases. And yet it's also somehow full of corner stores, gift shops, laundromats, pizza places, Chinese restaurants, lunch buffets, etc. etc. that no one ever seems to go into and have 2 stars on Yelp, but are still there year after year. I figured that in some cases it could be a family that owns the building or a sweetheart lease deal or whatever, but there are just so many that it doesn't seem to add up.

coliveira 6y ago
In many cases they own the location and think it is a reasonable way to defer property costs, which maintaining ownership. But you're right, there are also shady operators that are making money in illegal ways.

giardini 6y ago

"small guys" ? Like the Roman Catholic Church, which likely has been moving it's money and holdings, just as it moves its guilty priests around, to hide them all so the pedophile lawsuits cannot get to it? Exempting churches was a terrible, terrible mistake.

kenned3 6y ago
Exempting churches was a terrible, terrible mistake. especially from a country with clear "separation of church and state" rules, except "in god we trust" on the money. No surprise they granted the churches the exemption, and stronly agree they should NOT have gotten the exemption given their own well documented corruption.
- ianai 6y ago
  It probably wouldn’t get bipartisan support without the exception though. It’s not perfect legislation and none is, but at least it’s a start.
  - coliveira 6y ago
    Of course, evangelicals are the biggest beneficiaries of church fraud. They open a new "church" every day, for the purpose of hiding their money producing assets: seminar companies, show business, book publishing, TV and radio.
- TheCoelacanth 6y ago
  There's a pretty simple reason why churches and other non-profits are exempt. They don't have any owners, so they can't disclose who their owners are.
coliveira 6y ago
Completely agree, especially because in this country is so each to open a new "church". One thing is to have legitimate churches, like the catholic or the protestant (whatever you think of them), another is to allow the creation of new "churches" so easily. It is a recipe for money laundering and a platform for con men (most of them are known as TV preachers).