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It's not anyone elses business where the money came from! If you were engaged in crime then the investigations of the actual crimes can eventually catch up wit
by nullc 5y ago
It's not anyone elses business where the money came from! If you were engaged in crime then the investigations of the actual crimes can eventually catch up with you. Expecting crime to get caught by surveilling your finances when you have no reason to be suspected of a crime is like expecting to scan your private correspondence for evidence of a crime.
- kube-system 5y agoThat's a fair opinion, but the law conflicts with that opinion in many places: https://en.wikipedia.org/wiki/Know_your_customer#Laws_by_country https://en.wikipedia.org/wiki/Know_your_customer#Laws_by_cou...
- beervirus 5y agoKYC doesn’t mean you have to interrogate your customer about how they earned their money.
- miohtama 5y agoYou are correct. What you describe is called proof of source of funds and also should be required for high value transactions.
- kube-system 5y agoIt depends on the jurisdiction and the particular transaction. In the US, for instance: > financial institutions covered by the final rule must take reasonable steps to: [...] (3) determine the source(s) of funds deposited into the private banking account and the purpose and expected use of the account; https://www.fincen.gov/fact-sheet-section-312-usa-patriot-act-final-regulation-and-notice-proposed-rulemaking https://www.fincen.gov/fact-sheet-section-312-usa-patriot-ac...
- nullc 5y ago> financial institutions covered being key...
- kube-system 5y agoYep. For instance: > banking institutions;
- tomc1985 5y agoIt does, actually. FinCEN does not fuck around. Source: just finished renewing my AML training
- dnautics 5y agoIt does. I was cautioned that due to FINcen "you cannot buy a house with crypto", luckily all of the gains I had made were tracked by a "sufficiently reputable" platform that it wasn't an issue.
- cryptohousethwy 5y agoWait, was that for a mortgage? I bought a house outright with cash that had been moved from Gemini (US crypto exchange) to Schwab less than two weeks before and the title company never had any questions about it. Throwaway for obvious reasons.
- dnautics 5y agoYes, sorry, I should have specified, that is what my lender said for banking operations. I presume you can buy a house with cash from crypto.
- stouset 5y agoIt is quite literally the lender’s business, as their decision to lend to you is absolutely contingent upon their confidence that the money came from a legitimate, stable source.
- cryptohousethwy 5y agoNot to nitpick, but the "stable" part isn't necessarily true. If the money is just being used for a down payment, and not being cited as recurring income, they wouldn't care whether it's stable. Side note: I still can't make sense of why lenders care about the money's source being legitimate but the title company doesn't, per my experience: https://news.ycombinator.com/item?id=28163885 https://news.ycombinator.com/item?id=28163885
- stouset 5y agoWell, I was conflating two things for simplicity’s sake. They care that the down payment came from legitimate savings with a documented history, to ensure it’s not from another loan they’re not aware of. And they care that your reported income is stable (you’re reliably employed with a reasonably predictable income stream) so they can reasonably expect you’ll continue to be able to make monthly payments.
- tim333 5y ago>It's not anyone else's business where the money came from! Oh yes it is - that's pretty much the definition of anti money laundering and many many people are involved in trying to figure that.