Topic: AML/KYC Explained - page 22. (Read 473818 times)
Thanks for sharing,
But i think that Aml/Kyc it's just a formality & does Not protect anyone from being scammed. As you all must be knowing about MtGox, the biggest fraud done under Bitcoin World, and even it was complied with Aml/Kyc laws. But this Aml/Kyc does nothing other than shutting down the small Enterprises and other small minded Business who trying to survive here & there. Its just a LOOPHOLE to Escape.
Chase is getting worse with cash deposits. They now request your ID when putting cash into your own account. It's a business account, businesses take cash for work. Oddly enough if I use the ATM and do a cash deposit no ID is required. Or a night deposit. Go to a teller and they'll need an ID. I tried to ask why big brother was so bothersome, the last teller had no idea what I was referring to by big brother.
The ID is not required because
they have a camera there and they can send your picture to a service that can identify you from a image
if required.
Also if you have some card or magnet key that you have to sweep over
some sensor to open the ATM box for depositing cash
then you are already identified.
You don't have to wary is all done for "your safety"
I'd like to propose some changes to KYC/AML rules. Criminals have been known to use their ill gotten gains to eat at restaurants and shop in grocery stores. I guess criminal activity can work up an appetite. It is incumbent upon restaurants to ensure that the money their customers are paying has come from legitimate sources. All restaurants should ask for ID and a utility bill before serving customers. They also need to ask their customers for their employer information and annual income. Self employed customers can produce a business license or other such documentation to prove the legitimacy of their income. Grocery stores also need to comply with these rules but in addition, grocery stores should ask for social security numbers as well. Maybe then we can protect children and fight Al Qaeda ISIS.
Government AML regulations put the burden on financial institutions, not regular businesses. Many banks are choosing not to accept anonymous cash deposits into bank accounts... such as JP Morgan Chase, which now only allows people to deposit cash into their own account.
Any cash deposit or cash withdrawal of more than $10,000 is required to be reported to the Federal government.
This is such a nonsense, you're really controlled at the end of the day, i hope we will not get same issues with coinbase or other exchanges operation in USA or EU
Chase is getting worse with cash deposits. They now request your ID when putting cash into your own account. It's a business account, businesses take cash for work. Oddly enough if I use the ATM and do a cash deposit no ID is required. Or a night deposit. Go to a teller and they'll need an ID. I tried to ask why big brother was so bothersome, the last teller had no idea what I was referring to by big brother.
I'd like to propose some changes to KYC/AML rules. Criminals have been known to use their ill gotten gains to eat at restaurants and shop in grocery stores. I guess criminal activity can work up an appetite. It is incumbent upon restaurants to ensure that the money their customers are paying has come from legitimate sources. All restaurants should ask for ID and a utility bill before serving customers. They also need to ask their customers for their employer information and annual income. Self employed customers can produce a business license or other such documentation to prove the legitimacy of their income. Grocery stores also need to comply with these rules but in addition, grocery stores should ask for social security numbers as well. Maybe then we can protect children and fight Al Qaeda ISIS.
Government AML regulations put the burden on financial institutions, not regular businesses. Many banks are choosing not to accept anonymous cash deposits into bank accounts... such as JP Morgan Chase, which now only allows people to deposit cash into their own account.
Any cash deposit or cash withdrawal of more than $10,000 is required to be reported to the Federal government.
This is such a nonsense, you're really controlled at the end of the day, i hope we will not get same issues with coinbase or other exchanges operation in USA or EU
If you trade on exchanges, your coins are always at risk as far as your anonymity goes. If the exchange suddenly changes their AML and KYC laws, and you cannot comply, say goodbye to your money. Many people told others to just use a fake id number on okcoin, but now sometimes they require you to upload and verify to withdraw, which they know many can't do since they numbers don't match up. Bitflyer has seized my funds and won't let them go 
I'd like to propose some changes to KYC/AML rules. Criminals have been known to use their ill gotten gains to eat at restaurants and shop in grocery stores. I guess criminal activity can work up an appetite. It is incumbent upon restaurants to ensure that the money their customers are paying has come from legitimate sources. All restaurants should ask for ID and a utility bill before serving customers. They also need to ask their customers for their employer information and annual income. Self employed customers can produce a business license or other such documentation to prove the legitimacy of their income. Grocery stores also need to comply with these rules but in addition, grocery stores should ask for social security numbers as well. Maybe then we can protect children and fight Al Qaeda ISIS.
Government AML regulations put the burden on financial institutions, not regular businesses. Many banks are choosing not to accept anonymous cash deposits into bank accounts... such as JP Morgan Chase, which now only allows people to deposit cash into their own account.
Any cash deposit or cash withdrawal of more than $10,000 is required to be reported to the Federal government.
This is such a nonsense, you're really controlled at the end of the day, i hope we will not get same issues with coinbase or other exchanges operation in USA or EU
Reading the main post, I realized that here in my country many financial institutions are now implementing the same procedures. Even small pawnshops here have their own Know Your Pawner which is the same as KYC. I think this really has something to do with money laundering issues especially connected with drugs and terrorism, among many other factors.
That's the argument the government uses, don't fall for it. It's actually all about control. In the USA the Department of Justice created the modern asset forfeiture in the 80s with the intent to actually get large drug lords. This has turned into a nightmare of even local police able to confiscate nearly anything they want and force the citizens to have to fight to get their own property back - at their expense! It's so bad that the head of the department that created asset forfeiture as we know it, and his successor, have spent years trying to stop the practice. I view the KYC rules in the same light... far overreaching rules that hinder the rights of the average citizen.
https://www.washingtonpost.com/opinions/abolish-the-civil-asset-forfeiture-program-we-helped-create/2014/09/18/72f089ac-3d02-11e4-b0ea-8141703bbf6f_story.html
Also even our own government didn't use KYC when they were giving suitcases of money - 12 billion USD - to who knows who in various hotspots around the world....
https://www.theguardian.com/world/2007/feb/08/usa.iraq1
The guide is very an easyt-to-understand one. I saw KYC and AML terms in white papers and then I made google search about them. But the results were not simple. Your explanation is nicely done thank you.
Can someone be imprison in making Laundering Fiat money and converting it to cryptocurrencies .What if your country is not in the lists of this AML/KYC the one who will commit it will not be punishable by law?
If you are a big enough fish, they can find you. I would venture to say if you are doing those type of transactions, on a regular basis and catch their attention they will go to great lengths to find and lock your funds up. The US treasury can lean on any country in any way they deem appropriate. KYC/AML is a big deal. Dont fuck with them.
is there any web provide all security tools for any bitcoin exchange business website ? eg.
1 - id verification manual and api
2 - sms verification
3 - 2 factor auth
i know there many websites like jumio charge per check. i am looking for cheapest solution under 1 roof or are there free sources available ?
please guide
1 - id verification manual and api
2 - sms verification
3 - 2 factor auth
i know there many websites like jumio charge per check. i am looking for cheapest solution under 1 roof or are there free sources available ?
please guide
Dont even look for this kind of service. KYC is common procedure for all online business related services.I faced with this rules when i opened my first gambling account. Sometimes they ask for selfie with your id. For example Cex.io exchange has really disturbing KYC rules for new customers. They ask for tons of documents and selfie with your documents which in front of monitor have to be cover of this exchange
That's really "more" compared to other exchanges.
There is a very serious risk associated with trading on exchanges.
If an exchange suddenly updates its KYC rules, and you can no longer meet those requirements (for whatever reason), then your funds will be permanently seized.
Good luck to any foreigners trying to get BTC out of Bitflyer in Japan.
My BTC on Bitflyer has been seized for over a month, with seemingly no way to withdraw it in any form, and no explanation from Bitflyer (they haven't answered my last 5 messages).
If an exchange suddenly updates its KYC rules, and you can no longer meet those requirements (for whatever reason), then your funds will be permanently seized.
Good luck to any foreigners trying to get BTC out of Bitflyer in Japan.
My BTC on Bitflyer has been seized for over a month, with seemingly no way to withdraw it in any form, and no explanation from Bitflyer (they haven't answered my last 5 messages).
Just yesterday a French startup was punished (80K€) by ACPR to not identify 34 customers for the use of bitcoin exchange services. 
AML is a Anti-Money Laundering it is use by the bank or other financing institution to know if it is the cash/BTC where from the legal/illegal job.
KYC is Know Your Client it is use to verify the identity of your client.
KYC is Know Your Client it is use to verify the identity of your client.
Thanks for this explanation. Helpful stuff.
is there any web provide all security tools for any bitcoin exchange business website ? eg.
1 - id verification manual and api
2 - sms verification
3 - 2 factor auth
i know there many websites like jumio charge per check. i am looking for cheapest solution under 1 roof or are there free sources available ?
please guide
1 - id verification manual and api
2 - sms verification
3 - 2 factor auth
i know there many websites like jumio charge per check. i am looking for cheapest solution under 1 roof or are there free sources available ?
please guide
Regarding the list of stricter KYC compliance, you can add www.Quebex.com. (Canadian p2p Bitcoin exchange)
Can someone be imprison in making Laundering Fiat money and converting it to cryptocurrencies .What if your country is not in the lists of this AML/KYC the one who will commit it will not be punishable by law?
Of course it can be and again it depends on the law in that country.
If there is not any law that regulates the issue than it won't be because in this case this won't be a crime.
For example take look at this:
https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country
In some countries is forbidden to even use crypto currencies while in others is legal or not restricted.
Also person could be punished to do money laundering or being a "financial mule" by using his own bank account(s)
to transfer money to 3rd parties.
Can someone be imprison in making Laundering Fiat money and converting it to cryptocurrencies .What if your country is not in the lists of this AML/KYC the one who will commit it will not be punishable by law?
I don't get it, so If I use a service that has AML, and I use it to transfert BTC into EUR.
My government get the infos ?
For exemple : If with mining I get like 5000$/year, does I will be asked to pay tax because the trading service will have send the infos to my country government ?
My government get the infos ?
For exemple : If with mining I get like 5000$/year, does I will be asked to pay tax because the trading service will have send the infos to my country government ?
They could get the info.
Depends on the tax law and other laws that you have in your country.
I doubt that they send info automatically for every transaction that people make.
Usually banks and other financial institution have software that tracks the incoming and outgoing transactions of the account.
So if the software detects a strange transaction pattern on the account than this account could get reported to
tax or other state authorities.
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