5 ms·

People seriously underestimate how much easier it is to open a bank account in the US compared to most other countries. Especially with how many states give ou

People seriously underestimate how much easier it is to open a bank account in the US compared to most other countries. Especially with how many states give out government-issued IDs to non-residents/non-citizens (16 states + Washington DC). It's estimated that between $250 billion and 500 billion is laundered through US banks every year, though some portion of that is via correspondent banking and not just individual account money muleing. And this just collects that information. It doesn't actually stop people from opening these accounts or shut them down.

giantrobot 6mo ago
The money laundering won't go away. It'll just move to administrations-approved money laundering vehicles like crypto. And needlessly disrupt or ruin the lives of millions. Neat.
- hrimfaxi 6mo ago
  What's the solution, no laws? Since laws just shift the venue for the crime in your view?
bonsai_spool 6mo ago
> It's estimated that between $250 billion and 500 billion is laundered through US banks every year, though some portion of that is via correspondent banking and not just individual account money muleing. The money laundering is not happening through consumer deposit accounts (I've never heard your term money mueling and it's almost definitely not people moving $10,000 at a time if that's what you are suggesting). It is wanton disingenuity to think that the goal of this rule is prevention of money laundering.
- busterarm 6mo ago
  I didn't say that was the goal. I explicitly said that it wouldn't do anything about it. Just that it happens. And absolutely it happens, particularly with networks of accounts connected to China. Just because you've never heard of it doesn't mean that it doesn't happen. FinCEN has been publicly chasing this down for years. Although hawala networks are also a big source of that not mainly personal banking. Also you're missing the forest for the trees here. Money laundering will most often happen through business bank accounts but a large number of business account holders also have personal accounts at the same bank and link them out of convenience. Personal ID is also required to open a business bank account. This requirement will likely apply to those as well.
  - bonsai_spool 6mo ago
    > Also you're missing the forest for the trees here I see what you're saying - I am just trying to convey that the $250 billion dollars being laundered is commercial. It's hard to imagine how anyone can come close to those figures by using consumer accounts, linked or not.
bix6 6mo ago
So why doesn’t existing AML catch this? You also mention FinCen which Trump paused so why not just reinstate that?
- busterarm 6mo ago
  He didn't "pause FinCEN", he stopped the reporting requirement of BOI for US Citizens/Companies.
  - bix6 6mo ago
    Ok agreed. So why? If there is an issue with foreigners then why is anyone exempted from reporting BOI? I have foreigners in my entities, surely the gov wants to know about them?

giantrobot 6mo ago

The money laundering won't go away. It'll just move to administrations-approved money laundering vehicles like crypto. And needlessly disrupt or ruin the lives of millions. Neat.

hrimfaxi 6mo ago
What's the solution, no laws? Since laws just shift the venue for the crime in your view?

bonsai_spool 6mo ago

> It's estimated that between $250 billion and 500 billion is laundered through US banks every year, though some portion of that is via correspondent banking and not just individual account money muleing. The money laundering is not happening through consumer deposit accounts (I've never heard your term money mueling and it's almost definitely not people moving $10,000 at a time if that's what you are suggesting). It is wanton disingenuity to think that the goal of this rule is prevention of money laundering.

busterarm 6mo ago
I didn't say that was the goal. I explicitly said that it wouldn't do anything about it. Just that it happens. And absolutely it happens, particularly with networks of accounts connected to China. Just because you've never heard of it doesn't mean that it doesn't happen. FinCEN has been publicly chasing this down for years. Although hawala networks are also a big source of that not mainly personal banking. Also you're missing the forest for the trees here. Money laundering will most often happen through business bank accounts but a large number of business account holders also have personal accounts at the same bank and link them out of convenience. Personal ID is also required to open a business bank account. This requirement will likely apply to those as well.
- bonsai_spool 6mo ago
  > Also you're missing the forest for the trees here I see what you're saying - I am just trying to convey that the $250 billion dollars being laundered is commercial. It's hard to imagine how anyone can come close to those figures by using consumer accounts, linked or not.

bix6 6mo ago

So why doesn’t existing AML catch this? You also mention FinCen which Trump paused so why not just reinstate that?

busterarm 6mo ago
He didn't "pause FinCEN", he stopped the reporting requirement of BOI for US Citizens/Companies.
- bix6 6mo ago
  Ok agreed. So why? If there is an issue with foreigners then why is anyone exempted from reporting BOI? I have foreigners in my entities, surely the gov wants to know about them?