In many cases, Paypal is complying with the law, not the other way around. Paypal spends a lot of time/money on risk management. If they see a lot of money bein

In many cases, Paypal is complying with the law, not the other way around. Paypal spends a lot of time/money on risk management. If they see a lot of money being funneled into the US, they are required to report and/or take action. It's as simple as that. My business account just got similarly flagged and we provided all necessary documentation that proves we are a real business. They removed the flag in 24 hours.