5 ms·

Doesn't the law block PayPal from being involved in such a transaction?

by monkeybutton 5y ago

croes 5y ago
Not the EU branch. Global boycott laws, like US ones, are forbidden.
- cptskippy 5y ago
  PayPal LU, the bank that makes PayPal EU possible is a Subsidiary of PayPal Holdings Incorporated in the US. > All US persons, including US-incorporated entities, their foreign branches (including non-US entities owned or controlled by a US person that are also subject to US sanctions with respect to certain sanctions programs, such as the US's Iran, Cuba, and North Korea sanctions programs) and employees, are prohibited from transacting with sanctioned parties. - https://insightplus.bakermckenzie.com/bm/compliance-investigations_1/international-navigating-the-currents-of-us-and-prc-sanctions-compliance-and-best-practice-for-financial-institutions#cntAnchor1 https://insightplus.bakermckenzie.com/bm/compliance-investig... I am pretty sure the EU and US have treaties requiring them to respect one another's sanctions.
  - croes 5y ago
    Paypal has already lost in german court. And global sanctions are still invalid. Paypal explicitly violates applicable EU law, namely the EU Blocking Regulation. This EU directive was explicitly issued in response to the US embargo against Cuba. It prohibits European companies from complying with the embargo and threatens all those who engage in the US blockade with severe penalties. And PayPal (Europe) S.à r.l. & Cie, S.C.A. is a european company.
    - cptskippy 5y ago
      Are the penalties worse than what they would face from US authorities? How do you balance that?
      - CogitoCogito 5y ago
        That should be up to Paypal EU. The EU should revoke their operating licenses until they come into compliance with EU law.
        cptskippy 5y ago
        > PayPal (Europe) S.à r.l. et Cie, S.C.A. is a credit institution (or bank) authorised and supervised by Luxembourg’s financial regulator So PayPal "EU" is actually just the Luxembourg Bank PayPal LU which is a subsidiary of the US Holdings. I'm not a lawyer but it seems PayPal LU just facilitates transfer of funds from EU accounts to PayPal Holdings US. Once the funds are in the US, they are subject to US law. The blocking statue protects EU Operators from having to comply with 3rd party regulations. But since PayPal LU is simply facilitating transfer of money from the EU to your PayPal account which is in the US, PayPal isn't a 3rd party to the transaction and thus has to comply with US sanctions.
pstrateman 5y ago
Anybody that wants to interact with the US banking system must enforce US sanctions. Pretty sure PayPal EU wants to be able to send money to people in the US.

Doesn't the law block PayPal from being involved in such a transaction?

croes 5y ago

Not the EU branch. Global boycott laws, like US ones, are forbidden.

cptskippy 5y ago
PayPal LU, the bank that makes PayPal EU possible is a Subsidiary of PayPal Holdings Incorporated in the US. > All US persons, including US-incorporated entities, their foreign branches (including non-US entities owned or controlled by a US person that are also subject to US sanctions with respect to certain sanctions programs, such as the US's Iran, Cuba, and North Korea sanctions programs) and employees, are prohibited from transacting with sanctioned parties. - https://insightplus.bakermckenzie.com/bm/compliance-investigations_1/international-navigating-the-currents-of-us-and-prc-sanctions-compliance-and-best-practice-for-financial-institutions#cntAnchor1 https://insightplus.bakermckenzie.com/bm/compliance-investig... I am pretty sure the EU and US have treaties requiring them to respect one another's sanctions.
- croes 5y ago
  Paypal has already lost in german court. And global sanctions are still invalid. Paypal explicitly violates applicable EU law, namely the EU Blocking Regulation. This EU directive was explicitly issued in response to the US embargo against Cuba. It prohibits European companies from complying with the embargo and threatens all those who engage in the US blockade with severe penalties. And PayPal (Europe) S.à r.l. & Cie, S.C.A. is a european company.
  - cptskippy 5y ago
    Are the penalties worse than what they would face from US authorities? How do you balance that?
    - CogitoCogito 5y ago
      That should be up to Paypal EU. The EU should revoke their operating licenses until they come into compliance with EU law.
      - cptskippy 5y ago
        > PayPal (Europe) S.à r.l. et Cie, S.C.A. is a credit institution (or bank) authorised and supervised by Luxembourg’s financial regulator So PayPal "EU" is actually just the Luxembourg Bank PayPal LU which is a subsidiary of the US Holdings. I'm not a lawyer but it seems PayPal LU just facilitates transfer of funds from EU accounts to PayPal Holdings US. Once the funds are in the US, they are subject to US law. The blocking statue protects EU Operators from having to comply with 3rd party regulations. But since PayPal LU is simply facilitating transfer of money from the EU to your PayPal account which is in the US, PayPal isn't a 3rd party to the transaction and thus has to comply with US sanctions.

pstrateman 5y ago

Anybody that wants to interact with the US banking system must enforce US sanctions. Pretty sure PayPal EU wants to be able to send money to people in the US.