4 ms·

Is the DOJ Forcing Banks to Terminate the Accounts of Porn Stars?

8 points by markmassie 12y ago

mschuster91 12y ago
Selling tobacco now a high-risk activity? What fucking joke is this?
- esbranson 12y ago
  > illegal sale of tobacco products on the Internet > Financial institutions should implement policies and procedures that reduce the likelihood of establishing or maintaining a relationship with payment processors through which unscrupulous merchants can access customers' deposit accounts. http://www.fdic.gov/regulations/examinations/supervisory/insights/sisum11/managing.html http://www.fdic.gov/regulations/examinations/supervisory/ins... Edit: illegal, Internet, unscrupulous merchants
  - mschuster91 12y ago
    I can see the risks linked with gambling, loans and pharma stuff (hello Chinese Viagra fraudsters), but where's the risk in tobacco?
esbranson 12y ago
For a discussion of the relevant law: http://dealbook.nytimes.com/2014/01/26/justice-dept-inquiry-takes-aim-at-banks-business-with-payday-lenders/ http://dealbook.nytimes.com/2014/01/26/justice-dept-inquiry-... https://www.courthousenews.com/2014/01/09/64360.htm https://www.courthousenews.com/2014/01/09/64360.htm https://www.courthousenews.com/2014/01/09/USvFourOaks.pdf https://www.courthousenews.com/2014/01/09/USvFourOaks.pdf > all banks in the United States [are] required by law to have an effective program in place to assure that the Bank understands the identities of its customers and the nature of their business activities > [all banks in the United States are] required to have an effective compliance program to prevent illegal use of the banking system by the Bank's customers > By conducting a meaningful "know-your-customer" analysis, [banks are] required to collect information sufficient for the Bank to determine whether a client pose a threat of criminal or other improper conduct. > information required to be collected includes purpose of the account, actual and anticipated activity in the account, the nature of the client's business, the client's location, and the types of products and services the client intended to offer > See generally Bank Secrecy Act, 31 U.S.C. § 5311 et seq.; USA Patriot Act, § 326, 31 U.S.C. § 5318; 31 C.F.R. § 1020 et seq. http://www.law.cornell.edu/cfr/text/31/chapter-X http://www.law.cornell.edu/cfr/text/31/chapter-X The gist is that all banks (etc.) are required to spy on you. Which is why we need Zerocoin (anonymous Bitcoin) or Zerocash. http://zerocoin.org/ http://zerocoin.org/

8 points by markmassie 12y ago

mschuster91 12y ago

Selling tobacco now a high-risk activity? What fucking joke is this?

esbranson 12y ago
> illegal sale of tobacco products on the Internet > Financial institutions should implement policies and procedures that reduce the likelihood of establishing or maintaining a relationship with payment processors through which unscrupulous merchants can access customers' deposit accounts. http://www.fdic.gov/regulations/examinations/supervisory/insights/sisum11/managing.html http://www.fdic.gov/regulations/examinations/supervisory/ins... Edit: illegal, Internet, unscrupulous merchants
- mschuster91 12y ago
  I can see the risks linked with gambling, loans and pharma stuff (hello Chinese Viagra fraudsters), but where's the risk in tobacco?

esbranson 12y ago

For a discussion of the relevant law: http://dealbook.nytimes.com/2014/01/26/justice-dept-inquiry-takes-aim-at-banks-business-with-payday-lenders/ http://dealbook.nytimes.com/2014/01/26/justice-dept-inquiry-... https://www.courthousenews.com/2014/01/09/64360.htm https://www.courthousenews.com/2014/01/09/64360.htm https://www.courthousenews.com/2014/01/09/USvFourOaks.pdf https://www.courthousenews.com/2014/01/09/USvFourOaks.pdf > all banks in the United States [are] required by law to have an effective program in place to assure that the Bank understands the identities of its customers and the nature of their business activities > [all banks in the United States are] required to have an effective compliance program to prevent illegal use of the banking system by the Bank's customers > By conducting a meaningful "know-your-customer" analysis, [banks are] required to collect information sufficient for the Bank to determine whether a client pose a threat of criminal or other improper conduct. > information required to be collected includes purpose of the account, actual and anticipated activity in the account, the nature of the client's business, the client's location, and the types of products and services the client intended to offer > See generally Bank Secrecy Act, 31 U.S.C. § 5311 et seq.; USA Patriot Act, § 326, 31 U.S.C. § 5318; 31 C.F.R. § 1020 et seq. http://www.law.cornell.edu/cfr/text/31/chapter-X http://www.law.cornell.edu/cfr/text/31/chapter-X The gist is that all banks (etc.) are required to spy on you. Which is why we need Zerocoin (anonymous Bitcoin) or Zerocash. http://zerocoin.org/ http://zerocoin.org/