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> funds the most depraved regimes I would also push back against this idea. The two biggest "rogue regimes," Iran and Russia, generate hundreds of billions in

by from 4y ago

> funds the most depraved regimes I would also push back against this idea. The two biggest "rogue regimes," Iran and Russia, generate hundreds of billions in clean money and substantial portions of their budget from oil/gas sales. Iran just has to have somewhat unique financial relationships with Turkey/China/UAE due to sanctions and their removal from SWIFT but I don't think that's really what you or most people mean by organized crime. They don't need financial crimes to make money. In fact their governments are often the victims of massive financial crimes and looting (Russia during privatization, Russia today with corrupt government contracts, Iran with subsidized goods like gasoline being smuggled out of the country on a massive scale, etc). North Korea is maybe an example of what you're talking about but as a percent of total financial crimes its activities are small. They're also aren't doing structured cash deposits in bank accounts or whatever. They're stealing money through phishing and wire transfers or crypto hacks. After stolen money has been sent through 3 or so jurisdictions the amount of international cooperation needed to recover it will take at least a year.

themacguffinman 4y ago
Transaction identification is essential for sanctions and trade enforcement. While countries like Iran & Russia do a lot of legitimate oil/gas sales, their oligarch leaders evade sanctions that cut them off from enjoying Western luxuries they crave. Transaction records also ensure hiding domestic sanction violations is extraordinarily difficult (unless you're state-backed like Swiss or Chinese banks). You won't see these countries rely on financial crime because these transaction systems already largely prevent them, few organizations really think they can get away with it. For example, North Korea cannot use cash to transfer large amounts of money because that's not even allowed in the first place, it has to use things like wire transfers. They are already subject to a monitored financial system that blocks major undocumented cash transactions. Once the records are mandatory, international data search & coordination can be made more efficient independently.

by from 4y ago

themacguffinman 4y ago

Transaction identification is essential for sanctions and trade enforcement. While countries like Iran & Russia do a lot of legitimate oil/gas sales, their oligarch leaders evade sanctions that cut them off from enjoying Western luxuries they crave. Transaction records also ensure hiding domestic sanction violations is extraordinarily difficult (unless you're state-backed like Swiss or Chinese banks). You won't see these countries rely on financial crime because these transaction systems already largely prevent them, few organizations really think they can get away with it. For example, North Korea cannot use cash to transfer large amounts of money because that's not even allowed in the first place, it has to use things like wire transfers. They are already subject to a monitored financial system that blocks major undocumented cash transactions. Once the records are mandatory, international data search & coordination can be made more efficient independently.