[HN Gopher] Moving Bricks: Money-laundering practices in the onl...
       ___________________________________________________________________
        
       Moving Bricks: Money-laundering practices in the online scam
       industry
        
       Author : speckx
       Score  : 195 points
       Date   : 2024-09-27 13:03 UTC (9 hours ago)
        
 (HTM) web link (globalchinapulse.net)
 (TXT) w3m dump (globalchinapulse.net)
        
       | teddyh wrote:
       | Hit piece on Telegram?
        
         | eitland wrote:
         | No, not as far as I have seen.
         | 
         | It seems they only describe that Telegram has been used
         | extensively by criminals for the same reasons everyone else use
         | it:
         | 
         | Great ux, reasonable privacy (for what we needed).
         | 
         | Note: all that is in a flux now. Personally I trust Telegram
         | less now as it seems the same exceptions the French has made
         | for themselves can also be used by russia or any other
         | terrorist regime.
        
           | goatsi wrote:
           | The assumption has been that Telegram provided significantly
           | more access to Russia years ago, as it remains unblocked
           | (with channels even run by the government), and Pavel Durov
           | wasn't arrested when he visited Russia after laws were passed
           | that would apply to Telegram but he claims they were refusing
           | to follow.
        
             | skinkestek wrote:
             | That is a good argument.
             | 
             | I have however thought that the actual reason was because
             | Russia depends on it.
             | 
             | They seriously even use it to coordinate artillery strikes
             | although lately I have seen evidence they now sometimes use
             | Discord.
             | 
             | I am not sure, and being convinced that Pavel Durov has
             | actually visited Russia several times the last few years
             | make me question my assumptions.
             | 
             | However I still see Russian opposition being more scared
             | now after Pavels visit to France because now the terms of
             | service has been updated to tell us that they will ahare
             | our ip address and phone number with law enforcement if
             | they feel compelled to or something to that effect.
        
           | nullorempty wrote:
           | What criteria do you use when calling regime a terrorist
           | regime?
        
             | MSFT_Edging wrote:
             | Targeting civilians, destroying civilian infrastructure
             | such as schools, hospitals, places of worship, water
             | supplies, food supply lines, etc for the purposes of
             | instilling fear in a civilian population to push a
             | particular stance.
        
               | aethalus wrote:
               | To clarify, is it still a terrorist regime when it's not
               | actually targeting civilians, but only by coincidence
               | civilians and civilian infrastructure are close to the
               | regime's military targets?
        
               | airstrike wrote:
               | Traditionally, no. Terrorism is the deliberate targeting
               | of civilians
        
               | toss1 wrote:
               | When the targets, as a matter of publicly stated policy,
               | engage in war crimes of using human shields to both
               | attack civilians and defend themselves, store war
               | munitions and setup command centers in hospitals,
               | schools, etc., and when the country defends itself
               | against those war crimes adhering to legal
               | proportionality rules, then no.
               | 
               | If it is actual indiscriminate bombing or targeting of
               | civilian targets not used in war crimes, human shields,
               | storing military equipment & munitions, command& control,
               | etc., then yes.
        
               | skinkestek wrote:
               | No.
               | 
               | This is rather clearly described in the laws of war.
               | 
               | If militants hides behind civilians or use civilians as
               | shields for military infrastructure, the lives of the
               | civilians is their responsibility.
               | 
               | This might seem counterintuitive at first but is
               | perfectly obvious once you stop and think:
               | 
               | If it was legal to use civilians as human shields and it
               | would shield your military infrastructure everyone would
               | do it.
               | 
               | Because the laws of the war is so clear about it nobody
               | does it except Hamas and they only do it because they
               | know western media and commentators will blame Israel
               | despite international laws being very _very_ clear in
               | this matter.
        
               | JumpCrisscross wrote:
               | > _Because the laws of the war is so clear about it
               | nobody does it except Hamas_
               | 
               | Everyone does it. We just call it espionage. That said,
               | when a Western espionage mission goes awry and it results
               | in collateral damage, the government doing the fuckery is
               | properly blamed.
        
               | skinkestek wrote:
               | Not sure if we are talking about the same thing?
               | 
               | I'm talking about Hamas literally
               | 
               | a) putting missile ramps and ammo depots in busy areas
               | 
               | b) preventing civilians from leaving after Israel has
               | dropped leaflets, called phones in the area and dropped
               | noise bombs
               | 
               | I don't see how the west does anything similar.
        
               | JumpCrisscross wrote:
               | Sure, Hamas dials the tactic to eleven. Point is hiding
               | merchant raiders [1] and clandestine activities ( _e.g._
               | the CIA 's fake vaccine campaign to verify Bin Laden [2])
               | operate on the same principle. And when those go wrong,
               | we properly blame the people using civilians for cover.
               | 
               | [1] https://en.wikipedia.org/wiki/Merchant_raider
               | 
               | [2] https://www.scientificamerican.com/article/how-cia-
               | fake-vacc...
        
           | rangerelf wrote:
           | > Note: all that is in a flux now. Personally I trust
           | Telegram less now as it seems the same exceptions the French
           | has made for themselves can also be used by russia or any
           | other terrorist regime.
           | 
           | What made you believe that Russia hasn't had a firehose into
           | Telegram's backend for the longest time?
        
             | eitland wrote:
             | For one the fact that Ukraine used it for a long time and
             | Russia even back before Ukraine told people to shun
             | Telegram for work didn't seem to have very good
             | intelligence.
             | 
             | Also because I see over time how hopelessly incompetent
             | Russian authorities are.
             | 
             | Also (but this is more shaky, I never verified) because
             | supposedly a good number of Telegram employees are
             | Ukrainian.
        
           | blendergeek wrote:
           | > Telegram's encryption and anonymity provide a readymade
           | technological platform for illicit activity, helping people
           | to overcome information barriers and gaps in the circulation
           | of information
           | 
           | That sentence is definitely in the "services like Telegram
           | should not exist" camp. I wouldn't call the entire article a
           | "hit piece" but the author is definitely trying to sway minds
           | in favor of more government crackdowns on apps like Telegram.
        
             | hughdbrown wrote:
             | I am not conversant in this field, but this portion of the
             | author's profile made me think that she favors the money
             | launderers on some libertarian grounds:
             | 
             | > Her dissertation explores how the illicit market
             | intersects and coexists with Cambodia's political and
             | economic systems in the cybercrime sector, breaking the
             | sovereign state's monopoly on violence and intersecting
             | with transnational business networks to form a global
             | illicit network.
             | 
             | "Breaking the sovereign state's monopoly on violence" would
             | seem a good thing only if you think that distributing
             | violence more widely should be a social goal.
        
               | skinkestek wrote:
               | > "Breaking the sovereign state's monopoly on violence"
               | would seem a good thing only if you think that
               | distributing violence more widely should be a social
               | goal.
               | 
               | I think that a reasonable and useful distinction can be
               | made between                  "Breaking the sovereign
               | state's monopoly on violence"
               | 
               | and                  distributing violence more widely
               | should be a social goal.
               | 
               | The first would be every ideological 2nd amendment
               | supporter (as opposed to criminal, practical, contrarian
               | or stick-it-to-the-libs 2nd amendment supporters).
               | 
               | The second would be criminals.
        
               | hughdbrown wrote:
               | Here is a fuller expansion of the thinking behind my
               | sentence you quote.
               | 
               | The usual construction is:
               | 
               | - in order to have a peaceful and ordered society,
               | citizens renounce the use of violence and interact only
               | by peaceful means
               | 
               | - citizens of a city/region/country delegate the use of
               | violence to the government (the "sovereign state")
               | 
               | - the government's use of violence is carefully
               | circumscribed by laws and use of governmental laws
               | outside these circumstances is forbidden
               | 
               | Which ends up defining government as the agent with the
               | exclusive authority to use violence in a geographic
               | region. And by extension has a monopoly on the use of
               | violence, for the safety and freedom of all concerned.
               | 
               | "Breaking the sovereign state's monopoly on violence", in
               | this interpretation, would be to say that some or all
               | people have recourse to violence, and in the worst case
               | are not restrained by law or government. It's in this
               | sense that I think that "breaking the sovereign state's
               | monopoly on violence" amounts to distributing access to
               | violence more widely.
               | 
               | The consistent application of these ideas would require
               | that citizens not have the right to resist government
               | application of force. In my view, the second amendment is
               | not a carve-out of (i.e. an exception to) this doctrine
               | if it is understood to be applicable to resisting force
               | applied by other citizens, not by government.
        
               | skinkestek wrote:
               | Edit: just saw this now, and I think I understand what
               | you mean: https://news.ycombinator.com/item?id=41672534
               | 
               | Sorry, English is not my first language :-)
               | 
               | -----------
               | 
               | To try to explain were I come from in this discussion:
               | 
               | I live in one of the Nordic countries in the suburbs.
               | 
               | From what I know two of my immediate neighbors have
               | firearms. I suspect there are a lot more nearby because
               | gun ownership is very common and most people don't talk
               | about it - I only know they have guns because they
               | sometimes go hunting.)
               | 
               | Growing up I knew about three houses with complete,
               | working assault rifles and emergency depots of ammo.
               | (This was completely normal until a spectacular robbery
               | were the robbers used stolen assault rifles early in the
               | 2000s.)
               | 
               | Switzerland and Austria I understand is the same.
               | 
               | All three known as very peaceful countries.
               | 
               | From what I read most of the absolute worst crimes
               | against humanity has happened by the government against
               | the citizens, not by citizens against citizens.
               | 
               | I am aware of the risks of pervasive weapons ownership
               | but I think of it as an insurance policy against much
               | much worse problems.
               | 
               | So I feel quite confident that there is a huge difference
               | between having access to violence and using violence.
        
               | JumpCrisscross wrote:
               | > _first would be every ideological 2nd amendment
               | supporter_
               | 
               | Owning a gun doesn't break the government's monopoly on
               | violence because owning a gun isn't violent. Firing a gun
               | at a shooting range isn't violent. (Most people don't
               | consider hunting violence.)
               | 
               | Reasonable 2nd Amendment supporters grant the state its
               | monopoly on violence. They just want the means by way to
               | revoke it. (Or, more realistically, make its abuse more
               | difficult.)
        
               | ronsor wrote:
               | I would argue that the government's monopoly on violence
               | is more about its power to engage in violence than
               | literal acts of violence.
        
               | skinkestek wrote:
               | Ahh. Good point.
               | 
               | Around here people are often very well armed but only
               | military and politice are allowed to use firearms.
        
               | JumpCrisscross wrote:
               | > _the government 's monopoly on violence is more about
               | its power to engage in violence than literal acts of
               | violence_
               | 
               | Power being capability and willingness. Guns give a
               | private citizen capability, same as anyone who can make a
               | fist. They do not extend to signalling a willingness to
               | shoot someone. (Threats, on the other hand, are illegal.
               | Partly because they're no fun for anyone involved. Partly
               | because that crosses from potential to actual.)
        
             | heisenbit wrote:
             | My understanding is that groups in Telegram are not
             | encrypted and the document mostly refers to groups. When it
             | comes to e2e encryption of one-to-one chats Telegram is not
             | unique in that space.
        
               | paulryanrogers wrote:
               | Telegram encryption is opt in, even for one on one chats.
               | That's unlike What's App, Facebook Messenger (as of
               | 2024-03), Signal
        
               | eitland wrote:
               | Telegram encryption is not opt in. End-to-end encryption
               | however is.
               | 
               | Also this always get mentioned and everyone confuses
               | encryption and end-to-end encryption.
               | 
               | What seems to never get mentioned here unless I do is
               | that there is more to security than end-to-end encryption
               | or not:
               | 
               | WhatsApp would (will? I don't use it since years ago)
               | happily upload your data unencrypted (actually
               | unencrypted not not-end-to-end-encryted!) to the biggest
               | data harvester of all -Google if you or anyone you chat
               | with enabled cloud backups.
               | 
               | Signal had months I think where they had a weird bug were
               | tje client would send pictures to people without the user
               | triggering it.
               | 
               | Facebook Messenger besides leaking all your communication
               | patterns to the second largest data harvester also have
               | this nifty feature were if someone reports your message
               | an unencrypted message goes to Facebook.
               | 
               | Facebook was also the ones that suggested people uploaded
               | nudes so the could "know what they should remove", wasn't
               | it?
               | 
               | Signal also had a nasty exploit that would let anyone who
               | sent a specially crafted message take control over the
               | signal users computer if they opened the message in the
               | desktop client.
               | 
               | Telegram is also the only one that I am aware of that has
               | reproducible builds for both Android and IOS. For every
               | other client you have to trust them. With Telegram you
               | can (could at least last I checked) check out the source,
               | build it and compare it to the version on the App Store.
               | 
               | What I mean is not that one should trust Telegram (there
               | are things I use Signal for), only that when it comes to
               | security engineering there is a lot more to consider than
               | end-to-end encryption and HN really struggles to see
               | this.
        
               | sulandor wrote:
               | seems like meta and google jump thru a lot of hoops to
               | maintain the sharade of e2e-privacy whereas with telegram
               | you know upfront that everything goes to someone else's
               | computer and call it a day
        
               | eitland wrote:
               | I agree.
               | 
               | Signal I think is very good with the two major
               | exceptions:
               | 
               | - AFAIK they don't publish reproducible builds
               | 
               | - They've (IIRC and AFAIK) _at times_ had lower quality
               | when it came to the non cryptographic parts.
               | 
               | So if someones lives depend on e2e-encryption Signal is
               | the only recommended messenger IMO.
               | 
               | For following public news channels from Ukraine and the
               | Middle East there is no alternative to Telegram.
               | 
               | And if I have to organize something and not everyone is
               | ready to install Signal (i.e. all the time around here) I
               | try to use Telegram. That way I'm at least not
               | spoonfeeding Google and Meta at the same time.
               | 
               | If FSB sits on my weekend plans that is annoying but no
               | big deal.
               | 
               | (I was however rather annoyed when I realized local
               | police used Telegram a while ago. I think that was very
               | irresponsible.)
        
               | chrisfosterelli wrote:
               | It's not even considered a good implementation. It's opt-
               | in instead of by default and uses non-standard
               | cryptographic techniques.
               | 
               | People who are critical of encrypted apps like to use
               | Telegram as the chief boogyman but the real reason that
               | Telegram is preferred by criminals isn't the encryption,
               | it's that Telegram has a history of not moderating at
               | all, allowing huge private groups, and refusing any
               | cooperation with law enforcement or CSAM reporting
               | groups.
        
             | teractiveodular wrote:
             | The author is a Taiwanese university student studying
             | anthropology. Not everything is a submarine (planted PR).
        
         | pbreit wrote:
         | Is the issue the stealing or the laundering?
        
       | alephnerd wrote:
       | Along with Chinese organized crime, these marketplaces and
       | brokers are protected and linked to Cambodia's ruling family [0]
       | who themselves are ethnic Teochow/Nanyang.
       | 
       | [0] - https://www.wired.com/story/pig-butchering-scam-crypto-
       | huion...
        
         | Jerrrrrrry wrote:
         | drugs, crime, fin-laundering, and china capital outflow (all of
         | the above)
         | 
         | these are the epitome of all the use-cases of all the cryptos
        
       | andriesm wrote:
       | The imaginary crime of money laundering. If the underlying
       | activity is a crime, we already have laws to deal with that. Why
       | is any attempt at financial privacy deemed money laundering? Why
       | does making any tool that help law abiding citizens have
       | financial privacy, also guilty of money laundering?
       | 
       | Of course, now that most people have bought into money
       | laundering, the goal posts are now getting moved that any attempt
       | at privacy can be considered illegal.
       | 
       | You use or provide a messaging service that has unbreakable
       | privacy - we'll make this a crime too!
       | 
       | Why should it be illegal to use a crypto tumbler/mixer service?
       | 
       | Oh because some people use it for crimes.
       | 
       | Then arrest the CEOs of gun companies, because guns can be used
       | to commit crimes!
        
         | beaglessss wrote:
         | While AML regulations likely have an impact, imo their main
         | secret motive is financial surveillance.
        
           | earnesti wrote:
           | This kind of legislation is crafter by big masses of lawyers,
           | lobbyists, politicians, whatever. Additionally they change
           | all the time. There are many different motivations at play.
           | Maybe it is surveillance, maybe something else, in the end
           | who cares, because it is impossible to read minds.
        
         | goatsi wrote:
         | The "money laundering" at focus in the article is receiving
         | money directly from people who are being scammed, and moving it
         | quickly enough that the police cannot freeze or recover it when
         | the scam is discovered. That's different from usual money
         | laundering.
        
         | mandibles wrote:
         | If cash were invented today, it would be illegal.
        
           | JumpCrisscross wrote:
           | > _If cash were invented today, it would be illegal_
           | 
           | Based on what? Is 2008 not "today," because last I checked
           | cryptocurrencies aren't illegal.
        
             | badsandwitch wrote:
             | Bitcoin is the furthest thing from cash, every single
             | transaction is transparent on input and output.
             | 
             | On the other hand...
             | 
             | Tornado Cash was made illegal. Pressure is put on exchanges
             | not to service Monero.
             | 
             | Odd that it only happens to actual cash-like crypto?
        
         | jjulius wrote:
         | >Why is any attempt at financial privacy deemed money
         | laundering? Why does making any tool that help law abiding
         | citizens have financial privacy, also guilty of money
         | laundering?
         | 
         | These are untrue absolutes.
        
           | beaglessss wrote:
           | There is still an element of truth. If you don't provide KYC
           | for a bank account there is now a crime if it is knowingly
           | allowed. You could go offshore but now you need to report the
           | account. You could form an anonymous LLC but law recently
           | changed an now must report UBO to fincen.
           | 
           | You could store cash/gold in an anonymous safe deposit, but
           | FBI raid and steal this. You cant fly with large cash because
           | again feds steal it. You can't carry it out the country in
           | large without reporting it.
           | 
           | Crypto, same story, KYC at the exits and P2P offramp actors
           | getting treated as 'unlicensed money transmitter' etc which
           | again triggers KYC.
           | 
           | Quickly you realize it's about shutting off all the exits of
           | privacy, not money laundering which only has increased cost
           | consolidating power to more dangerous organizations.
        
             | earnesti wrote:
             | Not providing KYC is definitely not a crime. It happens all
             | the time. What usually happens is that the bank just
             | terminates the account, after a while.
        
               | beaglessss wrote:
               | I suspect a lot of people would be eager to know the
               | names of these banks that let customers operate without
               | KYC for awhile.
        
               | JumpCrisscross wrote:
               | > _a lot of people would be eager to know the names of
               | these banks that let customers operate without KYC for
               | awhile_
               | 
               | Non sequitur. Banks generally have to have KYC to do
               | business, though there are famous exceptions in history.
               | There is _no_ jurisdiction I know of in which as a
               | customer not providing KYC is itself a crime.
        
               | beaglessss wrote:
               | The customer isnt charged, it is the bank/entity or
               | persons there. Not legal advice but failure if AML and
               | not collecting identifying information is charged under
               | 31 USC 5322 under indictment I'm reading.
               | 
               | The law here notes even some CFRs are criminally binding,
               | the CFRs explicitly require certain identification.
        
               | johngladtj wrote:
               | You're so close, but so far.
               | 
               | What happens if the banks don't close it?
        
               | earnesti wrote:
               | Later they might get a fine, which is just the cost of
               | doing business for them.
        
               | beaglessss wrote:
               | Unless someone dislikes them, in which case they will
               | unwittingly accept a sanctioned entity and then the
               | indictment will scream bloody murder that this was
               | basically all about not doing KYC (even though we all
               | know sanctioned entities operate on white market using
               | dark identity, so regular banks guilty too).
        
               | JumpCrisscross wrote:
               | > _in which case they will unwittingly accept a
               | sanctioned entity and then the indictment will scream
               | bloody murder that this was basically all about not doing
               | KYC_
               | 
               | Example? Every one I can think of involved the bank not
               | doing KYC, criminals taking advantage of it, and evidence
               | at least some people at the bank knew what was happening.
               | (Usually because authorities told the bank they were
               | doing business with criminals and the bank responded by
               | shuffling things around so they could continue doing that
               | business.)
        
               | beaglessss wrote:
               | Banks are always doing business with criminals and
               | sanctioned entities and they know that, although not
               | always when and where.
               | 
               | The difference is if the bank does KYC and the criminal
               | uses a dark identity, the bank will likely get away with
               | it. If the bank just gives each person a random number as
               | their only identifier like the old swiss accounts, then
               | they'll be warned sanctioned entities are using it and
               | ultimately prosecuted when they fail to KYC (i.e. similar
               | but but identical to CZ).
        
               | JumpCrisscross wrote:
               | > _difference is if the bank does KYC and the criminal
               | uses a dark identity, the bank will likely get away with
               | it_
               | 
               | What is a dark entity? Have you worked in finance?
               | Because if you collect KYC and accepted forged or faulty
               | documents, the moment you figure out what's going on is
               | the moment you call your personal lawyer.
        
               | beaglessss wrote:
               | One example is criminal pays a heroin addict for their
               | real ID and then basically uses them as pass through
               | nominee on the account.
        
               | JumpCrisscross wrote:
               | > _criminal pays a heroin addict for their real ID and
               | then basically uses them as pass through nominee on the
               | account_
               | 
               | Sure. If you're at a financial institution and accept
               | that documentation, you're personally in for a world of
               | hurt. Doesn't mean it doesn't happen, either due to
               | someone being negligent, overworked or happy to look the
               | other way. But if it's caught, it's not great for the
               | individual. (The bank will survive after paying a fine
               | unless it's systemic.)
        
               | beaglessss wrote:
               | I imagine they usually don't know. Some fraction of
               | identities are real IDs taken advantage of by sanctioned
               | entities. If you bank at all you knowingly accept some
               | level of sanctioned entities, but often don't know what
               | identity they operate.
        
               | JumpCrisscross wrote:
               | > _Some fraction of identities are real IDs taken
               | advantage of by sanctioned entities_
               | 
               | Sure. But if the addict you mentioned's account goes from
               | overdrafting every few weeks to holding millions of
               | dollars, that should set off internal alarms.
        
             | ywvcbk wrote:
             | Is most of that an issue if you declare your income and pay
             | any relevant taxes? Outside of some unnecessary annoyances
             | it generally wouldn't be too complicated to move your money
             | around.
             | 
             | Otherwise, what are you expecting? Direct taxation isn't
             | really compatible with 'financial privacy' and never was.
        
               | beaglessss wrote:
               | My response is civil rights should drive the tax man's
               | behavior and not the other way around. I will accept a
               | loss in efficiency of taxation.
        
               | vladimirralev wrote:
               | It depends. Some banks will ask for root origin of funds.
               | Say you earned some money 20 years ago, invested them
               | with various brokers into stocks all over the world, real
               | estate etc. And then cashed a large sum into your
               | account. If any one of those transactions is flagged they
               | will require you to go back 20 years and collect those
               | invoices that you earned and then you have to collect
               | every transaction from the brokers, this may involve
               | foreign jurisdictions where record keeping and querying
               | is not available from 20 years ago.
               | 
               | So you will fail the disclosure and the bank will flag
               | you in the shared blacklist DBs, they close your accounts
               | and you are out of the system. This is happening enmasse
               | to people who invested in and cashed out of real estate
               | abroad(asia/africa/sa) some time ago. I imagine it's the
               | same with foreign stock markets. And you never know what
               | will be required 20 years in the future, thus most
               | financial advisors discourage "moving money around". They
               | even have a whitelist of brokers, stocks and
               | jurisdictions, anything outside that is uninvestable for
               | normal people just because of KYC/AML paperwork
               | requirements.
        
         | soco wrote:
         | The underlying is one thing and the overlying another thing.
         | It's one thing to not declare your money and thus be tried for
         | tax evasion only, and another thing putting said money in
         | financial tricks (as we both know that's the only goal of
         | mixers) in order to commit tax evasion. If you want, think like
         | the difference between murder and manslaughter - which also
         | have many degrees and associated crimes like assault, arson,
         | rape... we always try for those as well.
        
           | smeej wrote:
           | > (as we both know that's the only goal of mixers)
           | 
           | Do "we" know that's the _only_ goal?
           | 
           | I've reported every digital currency-related gain or loss
           | I've ever had on my taxes, but that doesn't mean I wanted the
           | guy I bought my llama wool socks from to be able to trace my
           | whole holdings. I know how easy it is to do. I learned how to
           | do it _in an afternoon._
           | 
           | Believe it or not, some of us just really don't think the
           | world needs an indelible record of what kind of socks we
           | wear, not because we actually think anybody will _care,_ but
           | because we reject the principle that buying socks should
           | require a data record for third parties.
           | 
           | We might be weirder than you, but that doesn't make us
           | dishonest cheats.
        
             | soco wrote:
             | Fair enough, I take that generalization back.
        
         | dataflow wrote:
         | > Why is any attempt at financial privacy deemed money
         | laundering?
         | 
         | Is it? I thought laundering money is only illegal if it's
         | covering up illegal activity. Otherwise how is that different
         | from e.g. the shell corporations that mask the sources of their
         | funds.
        
           | beaglessss wrote:
           | Almost all large financial transactions or storage useful and
           | active in commerce require KYC or reporting so the magic is
           | the very act of privacy makes it illegal.
        
             | dataflow wrote:
             | It sounds like you're mixing up a bunch of things. To be
             | clear: do you have a single example of a person who was
             | convicted of the crime of money laundering despite it being
             | proven in court that the underlying activity wasn't
             | illegal?
        
               | beaglessss wrote:
               | In criminal law people aren't expected to prove what they
               | did wasn't illegal, it is the other way around. What did
               | happen in the case of CZs conviction is the state alleged
               | that lack of KYC allows some actors with illegal funds to
               | pass through, making weak KYC checks an element of money
               | laundering.
        
               | dataflow wrote:
               | > In criminal law people aren't expected to prove what
               | they did wasn't illegal, it is the other way around.
               | 
               | I very much understand that, but you missed my point with
               | that constraint: the point was that if your objection is
               | that _legal_ underlying activity can constitute money
               | laundering, then to prove your objection you need to show
               | an example of provably legal underlying activity.
               | 
               | On the other hand, if your complaint is that innocent-
               | before-proven-guilty isn't being upheld by courts, that's
               | a fine complaint, but an entirely separate one from money
               | laundering.
               | 
               | > What did happen in the case of CZs conviction is the
               | state alleged that lack of KYC allows some actors with
               | illegal funds to pass through, making weak KYC checks an
               | element of money laundering.
               | 
               | In other words he _did_ conceal illegal activity. Hence
               | my point.
        
               | beaglessss wrote:
               | Every single bank and person conceals illegal activity by
               | your final sentence. You probably have sold something for
               | cash bought by a drug dealer and unknowingly laundered
               | drug money.
               | 
               | The point here is that an unwitting actor is somehow
               | guilty if they did not do KYC. By your standard basically
               | every gas station near the border is a money launderer,
               | since they know damn well much of the cash they take and
               | transmit is drug and cartel money.
               | 
               | And that's the genius of this line of reasoning. There is
               | nary a dollar in circulation that hasnt been used in
               | crime.
        
               | dataflow wrote:
               | Again, you're mixing things up and moving goalposts. I
               | wasn't trying to make a case for what money laundering
               | is, only what (as I understand it) it _definitely isn
               | 't_. The example you cite clearly covered up underlying
               | criminal activity, whereas the claim was that you can be
               | guilty of money laundering _without any illegal
               | underlying crime_. Hence it fails to support the premise.
               | That is all.
        
               | beaglessss wrote:
               | >Again, you're mixing things up and moving goalposts
               | 
               | No you're mixing things. I said acts of privacy (with
               | listed examples of reporting large transactions) are made
               | illegal, then you went to only money laundering.
               | 
               | >he example you cite
               | 
               | You asked for an example of proving something not illegal
               | in court. You know damn well that's not the standard used
               | in criminal law, it was a trick question which I tried to
               | answer how I thought you meant to ask until I realized
               | you were being duplicitous.
               | 
               | >without any illegal underlying crime.
               | 
               | This is a false understanding of money laundering. It
               | isn't sufficient that there be illegal money involved,
               | there should be mens rea of such. Your premise is a lie
               | designed to mislead the audience. Good day.
        
               | dataflow wrote:
               | > No you're mixing things. I said acts of privacy (with
               | listed examples of reporting large transactions) are made
               | illegal, then you went to only money laundering.
               | 
               | How did _I_ move to money laundering? Are we reading the
               | same thread? The comment I initially replied to
               | _specifically_ said,  "Why is _any attempt at financial
               | privacy_ deemed _money laundering_ "?
               | 
               | > you were being duplicitous. Your premise is a lie
               | designed to mislead the audience.
               | 
               | It's quite the opposite, but your personal swipes are
               | pretty uncalled for, so I won't continue.
        
             | JumpCrisscross wrote:
             | > _all large financial transactions or storage useful and
             | active in commerce require KYC_
             | 
             | Not at all. I have authorised large wires without providing
             | KYC or collecting KYC from the other party. My bank knows
             | who I am. And I colloquially know the person I'm sending
             | money to. But I haven't _e.g._ run them through OFAC.
        
               | beaglessss wrote:
               | Your counterparty was almost certainly KYCd if the
               | receiving bank deals in USD or receive from a bank in us
               | jurisdiction.
        
               | JumpCrisscross wrote:
               | I've wired non-USD from my U.S. bank and wired U.S.
               | dollars overseas. I presume their bank is doing KYC. But
               | I don't know.
               | 
               | You claimed "all large financial transactions or storage
               | useful and active in commerce require KYC." That's simply
               | untrue. It's advisable to ensure someone is doing their
               | KYC. But not necessary.
        
               | beaglessss wrote:
               | Yes if you cutoff the first word it becomes untrue, how
               | ridiculously disinguine.
               | 
               | Here's an exercise, look at the FATF black list and then
               | start asking your bank about the process for wiring large
               | sums there. A lot of this compliance is driven through
               | FATF actions that drive any country that wants access to
               | anyone touching dollars or us banks to comply.
        
               | JumpCrisscross wrote:
               | > _look at the FATF black list and then start asking your
               | bank about the process for wiring large sums there_
               | 
               | So you've moved the goalpost from all large transactions
               | to transactions with explicitly sanctioned (EDIT: listed)
               | entities.
        
               | beaglessss wrote:
               | No I haven't. For instance the nation of Myanmar is in
               | the list. OFAC as far as I know would permit transmission
               | to most people there
               | 
               | The black list is nominally about weak AML and other
               | factors. It's an example I used because it's a list of
               | places on the shit list in part because they may have
               | weak controls on KYC.
               | 
               | FATF is a big driver if imposing KYC everywhere that
               | wants to interact with a US bank or USD. I'm trying to
               | show you if you actually try to wire somewhere with bad
               | KYC I think you're going to have issues.
        
               | JumpCrisscross wrote:
               | > _if you actually try to wire somewhere with bad KYC I
               | think you 're going to have issues_
               | 
               | Sure. There are three black list countries: North Korea,
               | Myanmar and Iran. "Almost all large transactions" do not
               | happen with people in these countries.
        
               | beaglessss wrote:
               | Are you at least open to the idea that the major reason
               | why many other nations like Bahamas, Cayman Islands,
               | Panama, St Kitts came off the black list and into AML and
               | KYC compliance is so they would have low friction wire
               | transfers and banking in USD?
               | 
               | I think you're missing connecting the dots here.
               | Countries with large USD transaction dependence comply
               | with KYC precisely because otherwise they'd not be able
               | to easily accept your wire transfer. They were pressured
               | into it, this KYC requirement that is largely invisible
               | to you. And the threat is well if they don't they end up
               | like Myanmar which I promise your bank will be getting to
               | know what the purpose and identity of any transaction you
               | have with them is.
               | 
               | KYC dominates because of a worldwide regulatory effort,
               | do this or you'll be cut off and it will be a nightmare
               | to trade USD. Almost all large transactions go through
               | KYC or reporting because it's been made difficult and
               | usually illegal not to. Were this not the case you WOULD
               | likely see lots of large transactions to Myanmar as
               | various rich people use it as a haven for stashing funds
               | anonymously ( although I think Panama etc would quickly
               | steal the competitive edge).
        
         | ETH_start wrote:
         | In this case, the people are actually laundering money.
         | 
         | So-called anti-money laundering laws criminalize far more than
         | money laundering, like financial privacy.
         | 
         | In any case, I would argue that the focus should be entirely on
         | the crime that generates the illicit revenue, and not the
         | after-the-fact laundering of the proceeds. When the focus is on
         | the latter, laws are inevitably passed that mandate people to
         | submit to warrantless surveillance of their financial
         | transactions. The populace at large should not be made to
         | sacrifice freedom and privacy in a largely futile attempt to
         | track illicit criminal gains after the fact.
         | 
         | No useful money -- i.e. no money that is unencumbered enough to
         | be practical to use, and that provisions people with a modicum
         | of protection against arbitrary state seizure -- will give the
         | state the ability to significantly prevent criminals from
         | profiting from the proceeds of their crimes, merely by tracking
         | and policing its flows.
        
         | ajross wrote:
         | > Then arrest the CEOs of gun companies, because guns can be
         | used to commit crimes!
         | 
         | So, obviously people know this, but it's important to spell
         | out:
         | 
         | There is an _explicit protection_ for keeping and bearing arms
         | in the constitution. No such language exists for  "financial
         | privacy", in fact the fourth amendment explicitly says the
         | government _can_ search and investigate citizens ' property,
         | just that they have to get a warrant based on probable cause.
        
           | potato3732842 wrote:
           | It's probably only a matter of time until the SC extends
           | "papers and effects" to mean "your stuff on other people's
           | hard drives" in some capacity. That will probably trigger a
           | bunch of re-litigation around the financial side of things
           | though I have no idea what the consequences would be.
        
             | ajross wrote:
             | It... already does. You can get a warrant for whatever
             | evidence you need already, no need for any new legislation.
             | The constitutional requirement is for judicial supervision,
             | and that's been pretty solid (not perfect, but good) for
             | almost three centuries now.
             | 
             | I'm just saying that there is no "right to financial
             | privacy" anywhere. You have a _general_ right to privacy as
             | granted by the fourth amendment. And courts take that
             | seriously. But it 's not absolute and the government is
             | allowed to unmask things for law enforcement.
        
         | valicord wrote:
         | You're exaggerating of course, but as a matter of principle, if
         | X is a crime, then obscuring the evidence of having done X must
         | surely also be a separate crime in its own right? Otherwise
         | someone would do X, then destroy the evidence and be in the
         | clear, since original X is now impossible to prove.
        
           | mistrial9 wrote:
           | no - this assumes the absolute existence of an unspecified
           | crime, so the question has incomplete context and poisonous
           | assumptions. There are rights of privacy for individuals and
           | groups in mature systems of law. The extremes of "everything
           | I do is my own information" and the opposite "we enforcers
           | have a right to all information at any time" are both
           | explicitly not allowed, for real reasons.
        
           | samatman wrote:
           | No, it very much should not be. We have an existing sort of
           | crime for _knowing participation_ in that kind of thing, it
           | 's called being an accessory.
           | 
           | If someone buys, let's say a bike, off an online marketplace,
           | and it turns out to be stolen, they're out the price of the
           | bike. It never belonged to them and gets returned to the
           | owner. But it must be proven that they knew it was stolen for
           | that to qualify as accessory to theft.
           | 
           | If you make any action which _has the effect_ of obscuring
           | evidence of crime, regardless of mens rea, into a crime, you
           | will end up prosecuting innocent people. That 's why this
           | legal doctrine works the way it does.
        
             | JumpCrisscross wrote:
             | > _If you make any action which has the effect of obscuring
             | evidence of crime, regardless of mens rea, into a crime,
             | you will end up prosecuting innocent people_
             | 
             | Sure. This isn't how aML law works. Money laundering is
             | specifically disguising the proceeds of illicit activity.
             | If there is no illicit activity, it's not money laundering
             | and it isn't illegal. Using a mixer or running your life
             | exclusively on cash is not illegal.
        
             | ljf wrote:
             | Not in the UK - there is a crime of handling stolen goods -
             | where you can be asked to prove the steps you took to
             | ensure they aren't stolen, or risk forfiting the good and
             | the money you made selling them. Hence why KYC is so
             | important for pawn shops etc. here.
             | 
             | Another UK example - a boat maker made incredibly high
             | powered speedboats - that happened to be very popular with
             | drugs runners. How how was he supposed to know what would
             | be done with them? But still they end up on the most wanted
             | list: https://www.eadt.co.uk/news/21291272.high-speed-
             | boats-sold-d...
        
               | rangestransform wrote:
               | it's incredibly authoritarian to have to affirmatively
               | prove that one is not committing a crime to the
               | government
               | 
               | burden of proof should be squarely on the prosecution,
               | period, end of story, don't force people to create
               | evidence against themselves
        
               | JumpCrisscross wrote:
               | > _it 's incredibly authoritarian to have to
               | affirmatively prove that one is not committing a crime to
               | the government_
               | 
               | Nit: it's oppressive and quasi totalitarian, not
               | authoritarian.
        
             | ChrisKnott wrote:
             | Does any money laundering offence not have a mens rea,
             | though? You typically have to have at least suspected that
             | you were dealing with the proceeds of crime.
        
               | timdev2 wrote:
               | Structuring (splitting up cash deposits to a bank so that
               | they don't trigger the bank to file a CTR) comes to mind.
               | It does have a mens rea component, but the money being
               | entirely clean doesn't make the act not-structuring,
               | IIUC.
        
             | derefr wrote:
             | A casino isn't a "knowing participant" to any _specific_
             | crime -- no criminal comes up to them and makes a deal to
             | launder money through the casino.
             | 
             | But casinos (for example) have a _tacit agreement_ with the
             | "criminal industry" in general, that criminals will be able
             | to inherently launder money through the cash-in/cash-out
             | mechanisms of the casino, in exchange for having to play
             | some table games (and therefore lose at least a small
             | percentage of their money, i.e. give a percentage of their
             | ill-gotten gains to the casino) to make everything look
             | legitimate.
             | 
             | If a given business has a business model where it _would
             | not possibly stay afloat over the long term, if not for
             | some appreciable fraction of its customer base making use
             | of the business for money laundering_ -- then the business
             | is a  "knowing participant" to the _general concept_ of
             | money laundering, even if they have never shaken hands with
             | any specific criminals. Their MBAs knowingly _design_ the
             | business around _enabling_ money laundering.
             | 
             | Come to think of it, this is a bit like the argument the US
             | DOJ used to take down Napster -- which actually, finally
             | somewhat convinces me of the logic they used.
             | 
             | The Napster company's business model depended upon some
             | appreciable fraction of its clientele being IP pirates. For
             | everyone else, Napster was a vitamin; but for pirates,
             | Napster was a painkiller. Napster would never have achieved
             | spread without a core base of pirates to spread it. The
             | Napster company's business model (presumably something like
             | "make the software widely used, then sell ads that display
             | in the client" or something) depended on -- was planned
             | around -- piracy. Thus, Napster was in _tacit collusion_
             | with pirates; just as most money launderers are in _tacit
             | collusion_ with gangsters.
        
               | joncrocks wrote:
               | Isn't that the reason that (at least in the US) cashing
               | out over a certain size requires ID? So that large
               | amounts of cash can't be laundered easily in this way?
        
               | derefr wrote:
               | Yes, and the point where that became enforced, was pretty
               | much the point where casinos in the US were sold off from
               | the gangs that generally owned them up to that point, to
               | "entertainment tycoons" who turned them into the "arcades
               | for adults" / "cruise ships on land" they're known as
               | today.
               | 
               | The US just got uniquely "lucky" here, in that the people
               | who bought up the casinos from the gangs, had a business
               | plan that involved making Las Vegas et al "family
               | friendly", which required moving as far away from the
               | casinos' previous "gang-affiliated" image as possible. As
               | such, they had no plans related to continuing to tacitly
               | launder money for the gangs; instead looking specifically
               | for that kind of signature and stopping it when they
               | notice it. (The shared Vegas-casino blacklist exists 1%
               | to stop card counters, and 99% to stop organized
               | criminals.)
               | 
               | Elsewhere in the world, this particular story didn't play
               | out the same way, though. So casinos elsewhere are still
               | mostly money-laundering fronts. Not always operated _by_
               | gangs, but often operated under the implicit business-
               | model assumption _of_ gangs.
               | 
               | What you'll see in your average casino-allowing country
               | -- Australia, say -- are casino businesses run by regular
               | people, who get very little traffic from regular gamblers
               | (nobody travels to Australia to gamble), who do zero
               | investment into making the casino _attractive_ to regular
               | people... and who instead concentrate all their effort on
               | making sure that gangs -- some even state-affiliated,
               | apparently! -- can continue to launder money through the
               | casinos with ease.
               | 
               | Though, for an example of very _explicit_ gang-casino
               | involvement, there 's the Golden Triangle, containing
               | casinos owned directly by a particular gang -- where it
               | isn't the gang members themselves (or their proxies)
               | cashing in and out to wash money; but instead, customers
               | of the gang's drug business, cashing in at the casino,
               | and then proceeding to lose all their money at the table,
               | as their way of making payment for a drug shipment from
               | the gang.
        
             | duped wrote:
             | I was under the impression that you don't need an
             | underlying act to charge or convict someone with
             | obstruction/other crimes of concealment because if they
             | were so good at concealing the crime you wouldn't be able
             | to prove the underlying act, even if you could prove that
             | they concealed it.
             | 
             | For example if a court subpoenaed a document while
             | investigating a crime but then the suspect destroyed the
             | document, you don't need to prove that the underlying crime
             | happened to prove that the suspect attempted to conceal it.
        
               | samatman wrote:
               | If a court subpoenas evidence, and someone destroys that
               | evidence, that's destruction of evidence, which is a
               | specific crime. My point is more general than that. The
               | reason someone could be prosecuted for that, even though
               | it leads to a lack of conviction for the originally-
               | investigated crime, is that destruction of evidence is
               | itself criminal behavior.
               | 
               | One could construct situations where a third party with
               | no knowledge of the subpoena destroys a document for
               | ordinary reasons, after the subpoena is issued. That
               | person is going to be very closely scrutinized, possibly
               | charged, but it's entirely possible to be found innocent
               | of a crime there. Say a corporation employs a document
               | warehouse and the contract says that documents are to be
               | destroyed after 60 days. A court orders on day 58 that
               | those documents be remanded, but the corporation doesn't
               | tell the warehouse, and the court is not aware that the
               | documents are in that warehouse, so they don't send the
               | subpoena to the warehouse.
               | 
               | The operator of the warehouse is not guilty of
               | destruction of evidence in this case. The party at the
               | corporation whose duty it was to produce the documents is
               | guilty. Assuming this is a high-profile case, there will
               | absolutely be additional subpoenas to demonstrate that
               | the operator was not informed of the need to retain the
               | documents, but mens rea must be demonstrated because
               | shredding documents is not _per se_ illegal behavior.
        
         | yieldcrv wrote:
         | Hey actually there is good news! I follow this topic and the
         | broken dragnet of AML/KYC a lot
         | 
         | The US federal law of Money laundering relies on there being an
         | _illicit origin_ , which means it is impossible to be charged
         | with _just_ money laundering and it can only be a tacked on
         | charge (but it may be the only charge that sticks). Merely
         | obfuscating the origin is not a crime, it's just stigmatized.
         | 
         | Ironically, if you are successful with money laundering, the
         | origin looks licit.
         | 
         | The government acts like that never happens, DOJ always issues
         | these pompous press releases about how nobody can hide in our
         | financial system, but they dont know anything.
        
         | ywvcbk wrote:
         | > any attempt at financial privacy deemed money laundering
         | 
         | If by privacy you mean concealing it from the government then
         | yeah, that's generally illegal in pretty much any place that
         | has income/capital gains/wealth taxes.
        
           | navigate8310 wrote:
           | > generally illegal in pretty much any place that has
           | income/capital gains/wealth taxes
           | 
           | Authoritarian governments typically enforce fiat currency to
           | monitor citizens, especially those with financial ties to
           | anti-establishment entities. They couldn't care less if
           | you're trading tomatoes.
        
             | JumpCrisscross wrote:
             | > _Authoritarian governments typically enforce fiat
             | currency to monitor citizens_
             | 
             | Example? Despotic governemnts in the real world are
             | kleptocracies. They use all manners of currencies because
             | their elites spend what they can steal. To the extent we
             | have highly-surveillable money systems, it's ones people
             | freely engage with, _e.g._ the U.S. dollar and crypto.
        
               | trompetenaccoun wrote:
               | That isn't generally true, what real world autocratic
               | regime do you have experience with? You can have less
               | government theft than in more democratic countries,
               | because favorable economic conditions are one way of
               | buying compliance. Take the largest dictatorship in the
               | world: China. The CCP does not take "what they can". The
               | tax burden is much lower than basically in any liberal
               | democracy in the West. A lot of taxes that you may think
               | are normal simply do not exist, property tax for example
               | is not a thing. They have heavy foreign exchange
               | restrictions, to keep money in the country. Many people
               | working in China are able to save a lot more of their
               | income than they would if they were in Europe or North
               | America. The catch is you can't freely use all manners of
               | currency, you can't even easily exchange to USD as a
               | Chinese. Foreign stock ownership is restricted.
               | Cryptocurrency is banned. It's basically the complete
               | opposite of what you described.
        
               | JumpCrisscross wrote:
               | > _take the largest dictatorship in the world: China_
               | 
               | China has semi-effective capital controls, at least on
               | the _hoi polloi_. (There is _massive_ leakage via Hong
               | Kong and Macau, but that 's for the _hoi olligoi_.) China
               | also has a thriving cash culture, which undermines your
               | tracking motivation argument.
               | 
               | Look at authoritarian countries broadly, however, and you
               | find a mix of strict capital-control regimes to maybe
               | something on paper but zero enforcement [1]. To the
               | extent they _have_ capital controls, it 's generally to
               | defend the value of the currency. Not for surveillance.
               | Conversely, thriving democracies have enforced capital
               | controls (again to defend their currency).
               | 
               | Capital controls are not an authoritarian-only policy
               | tool. And the principal motivation for capital controls,
               | _i.e._ requiring the use of domestic currency, across
               | history, has been economic.
               | 
               | > _CCP does not take "what they can". The tax burden is
               | much lower than basically in any liberal democracy in the
               | West_
               | 
               | Straw man--nobody claimed the CCP or anyone else takes
               | "what they can." Your metapoint is correct: China is the
               | 34th lowest (7.7%) and the U.S. 184th (12.2%) [2]. But
               | that number doesn't include what the elites extract [3].
               | 
               | [1] https://worldpopulationreview.com/country-
               | rankings/what-coun...
               | 
               | [2] https://en.wikipedia.org/wiki/List_of_sovereign_state
               | s_by_ta...
               | 
               | [3] https://www.icij.org/investigations/offshore/leaked-
               | records-...
        
           | AnthonyMouse wrote:
           | This doesn't explain why surveillance is required on the
           | buyer's side. Why can't you go to a retail store, buy an
           | anonymous prepaid debit card for cash and then use it to make
           | purchases over the internet without giving anyone your social
           | security number? The cash you're using has already been
           | taxed.
        
             | adwhdj wrote:
             | To protect the kids of course! How ever could the
             | government prevent all of these awful crimes against
             | children unless we surveil everything. Like I always say,
             | if you have nothing to hide. . .
             | 
             | Is what I imagine some spook told the lawmakers. Sarcasm
             | aside, I believe it is control.
        
             | JumpCrisscross wrote:
             | > _Why can 't you go to a retail store, buy an anonymous
             | prepaid debit card for cash and then use it to make
             | purchases over the internet_
             | 
             | Because when this is made available in practice like 99% of
             | the volume is tied to crime. 99% of _users_ aren 't
             | criminals. But criminals use it at scale in a way that
             | dwarfs licit activity. (Without tracking how much each
             | person is using it, you can't cut off the scale users.)
        
         | JumpCrisscross wrote:
         | > _If the underlying activity is a crime, we already have laws
         | to deal with that_
         | 
         | This is like complaining about DUIs being illegal because we
         | already have laws banning manslaughter.
         | 
         | > _Why is any attempt at financial privacy deemed money
         | laundering?_
         | 
         | It's not. Layering _per se_ isn 't illegal. It's suspicious but
         | legal, in the same category as carting a semi-automatic into a
         | grocery store in an open-carry state.
         | 
         | > _Why does making any tool that help law abiding citizens have
         | financial privacy, also guilty of money laundering?_
         | 
         | It doesn't. Practically every prosecution of money-laundering
         | services included evidence of knowledge by the operator that
         | their customers included people committing crimes.
        
           | AnthonyMouse wrote:
           | > This is like complaining about DUIs being illegal because
           | we already have laws banning manslaughter.
           | 
           | The premise of DUIs is to punish a person acting recklessly.
           | The premise of KYC is to punish a third party for not
           | conducting mass surveillance on predominantly innocent people
           | in case one of them commits a crime. It's hard to see how
           | these are analogous.
           | 
           | > Practically every prosecution of money-laundering services
           | included evidence of knowledge by the operator that their
           | customers included people committing crimes.
           | 
           | This is quite a fig leaf for any entity operating at scale.
           | The customers of any major bank will obviously include people
           | committing crimes -- they have millions of customers. They
           | also have thousands of employees, and then some percentage of
           | them will be criminals as well. Expecting the intersection of
           | these to be literally zero is an unreasonable standard.
           | 
           | More to the point, the underlying problem is what it
           | incentivizes them to do, i.e. manufacture some opaque and
           | arbitrary indicators and then conduct mass surveillance and
           | punish innocent people for running afoul of secret rules.
        
             | JumpCrisscross wrote:
             | > _premise of DUIs is to punish a person acting recklessly.
             | The premise of KYC is to punish a third party for not
             | conducting mass surveillance on predominantly innocent
             | people in case one of them commits a crime. It 's hard to
             | see how these are analogous_
             | 
             | You don't see how a bank not doing KYC and thereby
             | financing terrorists and Pyongyang could be seen as
             | behaving recklessly?
             | 
             | > _quite a fig leaf for any entity operating at scale_
             | 
             | Sure. It's why a lot of anti-money laundering isn't
             | prosecuted and why OP's complaint strikes me as silly.
             | 
             | > _conduct mass surveillance_
             | 
             | U.S. AML law is actually somewhat terrible for mass
             | surveillance. Records are held at each private institution.
             | This is why, if you've ever been party to wire fraud, it
             | takes the Feds hours to days to gather records. It's pull,
             | not push.
             | 
             | The practical arms of mass surveillance are the
             | credit/debit card rails. (And, increasingly, crypto.)
        
             | s1artibartfast wrote:
             | Drivers under the influence isn't necessarily reckless, but
             | is banned due to a strong association with reckless action.
             | 
             | The crime of DUI is not contingent on the actual facts,
             | risk, and danger presented in a given situation.
             | 
             | The association with realized harm is probabilistic in
             | nature.
        
               | iphoneisbetter wrote:
               | I agree. The problem isn't drunk driving. The problem is
               | drunk crashing.
        
               | s1artibartfast wrote:
               | Both can be a _problem_ , depending on the problem
               | statement, but the harm clearly occurs with the crashing.
               | 
               | Drunk driving is an upstream pre-requisite to drunk
               | crashing.
        
               | dpig_ wrote:
               | All skills require practice, but they simply won't let us
               | get good.
        
               | haswell wrote:
               | > _Drivers under the influence isn 't necessarily
               | reckless, but is banned due to a strong association with
               | reckless action_
               | 
               | I'm trying to understand this. It is well documented that
               | consuming alcohol impairs thinking, reaction time, motor
               | function, etc. How is the decision to drive a multi-
               | thousand pound vehicle in the proximity of other humans
               | while in that state not itself reckless?
               | 
               | You seem to be arguing that the problem primarily exists
               | when some percentage of impaired drivers start to drive
               | recklessly. But given the baseline impairment, how is the
               | act of driving not inherently reckless?
               | 
               | Drunk driving crashes don't just happen because someone
               | decided to go crazy and drive 130mph or something
               | similar. They also happen because the impaired person
               | fails at basic aspects of driving like staying in their
               | lane, stopping in time, seeing pedestrians, etc.
               | 
               | > _The crime of DUI is not contingent on the actual
               | facts, risk, and danger presented in a given situation._
               | 
               | DUI is a crime based on the fact that people driving
               | under the influence are significantly more likely to harm
               | others, and the baseline risk is high enough to make
               | driving in such a state unacceptable. Even with laws in
               | place banning it, alcohol is a leading cause of vehicle
               | related deaths and there are quite a few of them every
               | year.
               | 
               | It seem problematic to argue that these laws aren't based
               | on actual facts and real danger when both are well
               | documented.
               | 
               | > _The association with realized harm is probabilistic in
               | nature_
               | 
               | The same could be said about almost every kind of harm
               | you can think of. It's unclear what someone is supposed
               | to take from this statement.
        
               | s1artibartfast wrote:
               | My point is that the law doesn't actually look at
               | situational risk or recklessness. It is a rough heuristic
               | to approximate it. Im not even necessarily arguing
               | against it, but highlighting the common conflation
               | between harm, actual risk, and heuristically approximated
               | risk.
               | 
               | A cop or the law makes no pretension of trying to
               | evaluate if a driver actually put someone at risk in a
               | given scenario. A judge doesn't care if you were alone on
               | the road or how far you were going. A judge doesn't even
               | care if the car is on or moving.
               | 
               | >alcohol is a leading cause of vehicle related deaths and
               | there are quite a few of them every year. It seem
               | problematic to argue that these laws aren't based on
               | actual facts and real danger when both are well
               | documented.
               | 
               | I would say there is little systemic logic to the rate
               | and severity of penalties. In 33% of pedestrian
               | fatalities, the pedestrian was drunk. In 16%, the driver
               | was drunk.[1]
               | 
               | Similarly, the common DUI threshold is 0.08 BAC.
               | 
               | Being awake for 17 hours (working late) is similar to
               | having a BAC of 0.05%. [2]
               | 
               | Being awake for 24 hours (working a double shift) is
               | similar to having a BAC of 0.10%
               | 
               | Simply talking on a phone while driving has been shown to
               | be similar to a BAC of 0.08%.
               | 
               | Texting while driving is equivalent to a BAC of 0.19%!
               | [3]
               | 
               | The fine for texting while driving starts $20, but the
               | total cost can be over $162 due to court costs.
               | 
               | >The same could be said about almost every kind of harm
               | you can think of. It's unclear what someone is supposed
               | to take from this statement.
               | 
               | Im just making the point that we we criminalize isnt as
               | clear cut as one might think, and people often conflate
               | actual harm, actual risk, and heuristically approximated
               | risk.
               | 
               | More generally, I think the intersection with probability
               | and criminal justice is fascinating, particularly the
               | criminalizing risk factors. e.g. if we took a similar
               | approach, what percent confidence would we need that
               | someone will commit murder to preemptively lock them up
               | based on risk.
               | 
               | https://www.ghsa.org/sites/default/files/2020-02/GHSA-
               | Pedest...
               | 
               | https://www.cdc.gov/niosh/work-hour-training-for-
               | nurses/long...
               | https://facilities.uw.edu/blog/posts/2016/07/26/texting-
               | and-...
        
               | singleshot_ wrote:
               | How do you figure drivers driving under the influence
               | aren't reckless? Are they not aware of the risk? Are they
               | not consciously disregarding it? Or are you using some
               | weird definition of recklessness?
        
               | s1artibartfast wrote:
               | I think what I find interesting in the application of
               | statistics, and how a population characteristic can be
               | different from individual circumstance. Real world risk
               | isnt categorical, it variable.
               | 
               | On average, drunk driving obviously poses more risk than
               | regular driving. However, drunk driving isnt _always_
               | risky, and does not necessarily or uniformly put others
               | at risk at the factual case by case level.
               | 
               | I think this makes it an interesting intersection between
               | probability, heuristics, and criminal justice
        
               | xboxnolifes wrote:
               | The point is that drunk driving is illegal even if you
               | are driving perfectly fine.
               | 
               | Hell, being drunk just sitting in a parked, no ignition
               | driver seat is illegal in some places.
               | 
               | Not sure how the second one is reckless in this context.
        
             | stickfigure wrote:
             | > Expecting the intersection of these to be literally zero
             | is an unreasonable standard.
             | 
             | Nobody expects the intersection to be zero - not the banks,
             | not the regulators. The rule is that banks must take
             | prudent measures, and the definition of that has evolved
             | over time (as financial crime has evolved over time).
             | 
             | Google "risk-based anti-money laundering approach" or if
             | you'd like a more thorough introduction, listen to the Dark
             | Money Files podcast.
             | 
             | I have libertarian sympathies too, especially since most
             | AML rules were originally established to fight the war on
             | drugs (my sympathies lie with the dealers, sorry). But I'm
             | pretty happy to make life hard for terrorists, bad
             | governments, and kleptocrats - who, unlike the characters
             | in Reefer Madness, are not just bogeymen.
        
           | soulofmischief wrote:
           | > It's suspicious but legal, in the same category as carting
           | a semi-automatic into a grocery store in an open-carry state.
           | 
           | Any suspicion toward a US citizen for open-carrying a semi-
           | automatic weapon (which you realize is like half of the
           | handguns in circulation, right?) is entirely due to one's own
           | prejudice and misconceptions. It is objectively not
           | suspicious. The individual is openly carrying it, not hiding
           | it. Concealed carry should not be suspicious either, but open
           | carry should be _less_ suspicious.
           | 
           | This would be a good moment to examine your biases against a
           | fundamentally protected human right as recognized by our
           | constitution.
        
             | gambiting wrote:
             | >> It is objectively not suspicious.
             | 
             | It literally couldn't be any more suspicious. Carrying a
             | jar of bees into a public space isn't illegal either but
             | I'd be _very_ suspicious of anyone doing it, and it doesn
             | 't even need any special protection in the constitution.
             | 
             | Just because something is legal doesn't mean you have to be
             | completely and unquestionably accepting of it in public
             | spaces.
        
             | ectospheno wrote:
             | I lived in a state for half my life where a concealed carry
             | permit was one page of paper and $100. I knew a lot of
             | people who exercised that right.
             | 
             | I wouldn't describe any of them as legal scholars. Their
             | knowledge extended to two amendments and not much more. I
             | wouldn't describe many of them as confident or brave
             | either.
             | 
             | They could angry post with the best of them though. Loved
             | arguments.
        
         | legitster wrote:
         | > Why is any attempt at financial privacy deemed money
         | laundering?
         | 
         | Ummm. Taxes?
         | 
         | Money laundering is very clearly accounting fraud. If
         | embezzlement is a crime, then money laundering is just
         | embezzlement in reverse.
         | 
         | I feel like you are down an absolutist rabbithole about
         | privacy. There are certain practical limits to privacy. You
         | cannot blight yourself from other people's vision. You cannot
         | operate in a society (whether it be grocery shopping, owning
         | property, driving a car) without existing in some form.
         | "Privacy" only makes sense in the context and is not some
         | maximalist ideal that you can apply to any situation.
        
         | bdjsiqoocwk wrote:
         | > If the underlying activity is a crime, we already have laws
         | to deal with that.
         | 
         | Why should guns be illegal, we already have a crime against
         | killing.
         | 
         | Breathtakingly idiotic.
        
           | lcnPylGDnU4H9OF wrote:
           | That's actually a good argument against outlawing guns. What
           | point are you trying to make?
        
         | vkou wrote:
         | > The imaginary crime of money laundering
         | 
         | There's nothing imaginary about trying to hide money that you
         | stole from someone, so that it can't be taken back from you.
        
       | tempodox wrote:
       | I never knew it could be so interesting to be an anthropologist!
       | 
       | And I love how the article gives the Chinese words for all the
       | terms involved. It feeds my fascination for everything that is
       | Language.
       | 
       | > The Chinese word tongdao, which we chose to translate as
       | 'gateway', parallels the English word 'channel'--a linguistic
       | coincidence that shows the intermediary nature of these
       | businesses, which act as a channel for the circulation of both
       | information and money.
       | 
       | Exposition like this is so rare. I cannot upvote this article
       | enough.
        
       | frozenlettuce wrote:
       | Here in Brazil, I've seen some people starting to suspect on web
       | influencers for money laundering. Pick your niece/nephew, start a
       | social media account, buy followers/likes then start laundering
       | the money on fake ads and partnerships.
        
       | Animats wrote:
       | So that's what keeps USDT going.
        
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