4 ms·

If your business deals with double digit percentage of criminal activity, it's called fencing and it's a crime.

superkuh 5y ago
At least until you do it at a scale large enough to make significant campaign contributions like, say, Bank of America or Wells Fargo. And those companies not only processed large relative amounts of criminal proceeds as companies they literally committed fraud themselves against their own customers.
- deleted 5y ago
  [deleted]
- KptMarchewa 5y ago
  In absolute amounts, yes. In relative to their total operations? No.
tombert 5y ago
Fair enough! As I said, I don't know a ton about this stuff, so always good to have knowledge shed for me. Out of curiosity, what do regular banks (e.g. BOA in my example) do to avoid this problem? Just basic background checks and reporting suspicious behavior to the FBI or SEC or something?
- geofft 5y ago
  Yup, there's a thing called a "suspicious activity report": https://www.occ.treas.gov/topics/supervision-and-examination/bank-operations/financial-crime/suspicious-activity-reports/index-suspicious-activity-reports.html https://www.occ.treas.gov/topics/supervision-and-examination... https://en.wikipedia.org/wiki/Suspicious_activity_report https://en.wikipedia.org/wiki/Suspicious_activity_report https://www.fincen.gov/reports/sar-stats https://www.fincen.gov/reports/sar-stats Millions of these are filed per year. Obviously not all of these - probably not even most of these - are about actual crimes or end up in actual prosecutions, but the banks still have to file them.
  - tombert 5y ago
    Ah, I learned something today! Well then I think that cryptocurrency exchanges should probably have to do the same thing (and it's possible that some of the more reputable ones like Gemini and Coinbase already do).
- dmoy 5y ago
  There is are reams of various regulations on this, including the various "Know Your Customer" stuff. Some of that came in with the USAPATRIOT Act. > Just basic background checks and reporting suspicious behavior to the FBI or SEC or something? yes that's part of it (FinCEN though I think, not necessarily direct to the fbi/sec)

At least until you do it at a scale large enough to make significant campaign contributions like, say, Bank of America or Wells Fargo. And those companies not only processed large relative amounts of criminal proceeds as companies they literally committed fraud themselves against their own customers.

deleted 5y ago
[deleted]
KptMarchewa 5y ago
In absolute amounts, yes. In relative to their total operations? No.

tombert 5y ago

Fair enough! As I said, I don't know a ton about this stuff, so always good to have knowledge shed for me. Out of curiosity, what do regular banks (e.g. BOA in my example) do to avoid this problem? Just basic background checks and reporting suspicious behavior to the FBI or SEC or something?

geofft 5y ago
Yup, there's a thing called a "suspicious activity report": https://www.occ.treas.gov/topics/supervision-and-examination/bank-operations/financial-crime/suspicious-activity-reports/index-suspicious-activity-reports.html https://www.occ.treas.gov/topics/supervision-and-examination... https://en.wikipedia.org/wiki/Suspicious_activity_report https://en.wikipedia.org/wiki/Suspicious_activity_report https://www.fincen.gov/reports/sar-stats https://www.fincen.gov/reports/sar-stats Millions of these are filed per year. Obviously not all of these - probably not even most of these - are about actual crimes or end up in actual prosecutions, but the banks still have to file them.
- tombert 5y ago
  Ah, I learned something today! Well then I think that cryptocurrency exchanges should probably have to do the same thing (and it's possible that some of the more reputable ones like Gemini and Coinbase already do).
dmoy 5y ago
There is are reams of various regulations on this, including the various "Know Your Customer" stuff. Some of that came in with the USAPATRIOT Act. > Just basic background checks and reporting suspicious behavior to the FBI or SEC or something? yes that's part of it (FinCEN though I think, not necessarily direct to the fbi/sec)