Topic: Bitcoin’s Affect on US Banks Money Laundering (Read 364 times)

I think it is just a false news spreading over the internet. It is to confused the mindset of the people connected to bitcoin.

this is because of the anonymous nature of bitcoin. of course the decline in confidence in bitcoin is further shrinking with the many bad news. but clearly BTC will never bubble

 I think this polemic that makes price movements continue to experience correction, many negative news that hit crypto currencies including bitcoin, many issues that bitcoin is often used as a tool for money laundering, it is difficult to get rid of the presumption because it is the priority of bitcoin, one can know wherever the bitcoin flows but the bitcoin is known to come from and to whom

For me you're not answering the claim at all.

What the article says is that banks already are laundering a hell amount of money.
Businesses are deep in that too.
In fact the more money you have the more likely you are to be deep in laundering.

But it doesn't change the fact that it's one of the main uses of btc. Saying "there are other ways to do money laundering" doesn't change the fact that btc is used for that, a lot.

Anyone who is of the opinion that bitcoin is created for money laundering is either deceiving himself or being economical with the truth and that is a fact. Long before now, the issue of money laundering has been a major concern and with the several controls put in place, I can say boldly it has reduced rather its just not announced in other to give credit to the various controls that have been put in place by the managers of the economy and encourage them to continue to do more. Bitcoin on the other hand is gradually losing its anonymity because of the KYCs policies which makes it even difficult to move huge amount of coin value without raising a dust.

Those penalties are way too low,for banks who operate with billions of dollars.I think that US government officials are involved into big money laundering schemes,but nobody can prove that,because nobody wants to "disappear".
The bitcoin money laundering bubble is bursted long time ago and we shouldn't continue talking about it.

It is funny to see how the media serves the purpose of the ones seeking to accumulate more bitcoin at low prices... these guys don't even get to the trouble of doing it in a low profile.
Bitcoin is money and the things people to with it are the same they have ever done with the other currecnies... mainly the USD... the tough part is that you can laundry your own money instead of using a bank, and judging by their behaviour, this appears to be a very good part of their income...
If the solution for illegal money would reside on taking down the currency itself, than I guess USD would have to be terminated as it is by far the type of currency more widely used in illegal deals globally...

The thing is money is also moving from Banks to fund political parties and this is why governments are looking the other way or giving small fines to Banks, when they step over the line. The ruling party would not have been in control of the government, if it was not for the contributions that these Banks were doing to these political parties.

Banks have a lot of leverage to use against governments and the governments cannot stay in power without them. Most political parties are also funded by criminal organizations and the Banks also help to obscure the transactions that are done by them to fund these politicians.

blaming crypto for money laundering for me is not fair because crypto has a blockchain and every trace will be traceable because it is ledger. If their government is smart, then it will be easy for them to catch all the money laundering perpetrators, because this evidence can be submitted to the court.
but I think the one who did this was an institution or politician who tried to cover up his lies and throw errors on crypto.

do you know if money laundering is already there before blockchain and crypto exists, and I'm sure the fiat also has a wash. why only today are you shouting loudly because of crypto?

It is undisputable that Bitcoin might serve as one of means of money laundering. The same applies to cash. And it doesn't mean we will restrict cash just because it could be used for money laundering. Big money will always find its way ...

The success of Bitcoin is closely related to money laundering. Money laundering by these banks has long been a driving force for Bitcoin. Bitcoin now has little impact on life, but it is a sacred coin to the capitalist. Bitcoin has shortcomings, but it will not affect future growth.

Money laundering accusations have been all around bitcoin but I think bitcoin has gone beyond this and have helped in the economic growth of countries. It has made some early adopters richer than they were. Transaction are also easy with bitcoin and banks are beginning to look into positive aspects of bitcoin too.

First, it was not part of the plan to make Bitcoin as tool to launder money. Remember it was designed to be a payment scheme. But as time goes by, criminals took advantage of its supposedly, (pseudo)anonymous nature and media misled the public for the last couple of years that Bitcoin is being used by to hide their wealth or conceal their illegally obtained money through it. But if you're going to look closely, its not the best way as everyone can be tracked in blockchain. Fiat is far more being used, and we all know, AML was put into place to at least suppressed or control or even prosecute bad actors. It is effective? We don't know. But we should understand that there's no way that Bitcoin or crypto should be look at another tool to laundered money.

The big money, especially the banks are laundering money longer than we could ever imagine. They are so good at not getting caught that it looks as if they aren't doing something fishy on the sidelines, yet the one who speaks most trash usually are the ones producing it. Bitcoin has been the target of diversion for these banks due to its pseudo-anonymous nature; for these guys in the banks, anything anonymous should raise a red flag, but for the most part bitcoin is used for investing and not really hardcore money laundering that they are doing for centuries. The recent news about Goldman Sachs is really not surprising anymore since they think they're high and mighty that they'll never be caught.

Before since Bitcoin has not yet developed and discover there is already a money laundering case made by those having illegal activities. But as of now based on the article I have read those money laundering had been lessened long time ago since Bitcoin was founded and discover, I think blockchain and the Bitcoin technology is not just an easy way to make a transaction that you can't trace, all transactions are recorded by the blockchain, probably Bitcoin can't use them because of that.

I would say that bitcoin is really a good thing to launder money but what they say about bitcoin and how they blame it, isn't right. Do they forget that banks are the most widely used for money laundering? They don't like bitcoin and the fact when others launder money? Only they want to launder as they wish?
I think this thread is a good reminder for them, who watchs bitcoin as a money laundering option: https://bitcointalksearch.org/topic/four-global-banks-involved-in-yet-another-money-laundering-scheme-5055518

It is wrong to say that bitcoin was created only for the purpose of money laundry. This is a way of spreading negative news. Long before 2009, the anti money laundry movement have been in place. This simply means that money laundry has been recognized long before bitcoin was developed.

For as today banks are getting more and more , i think if bitcoin will affect the bank i think it's better or should i say has a great effect but then again one of the factor that people like the most in bitcoin is that it's decentralized so i think , or in the future aspect , for what i believe is , maybe the correlation between banks and bitcoin would not gonna work.

The only thing that this keeps happen is because of the one features of bitcoin and that is the anonymity. Being anonymous takes one a courage to do abusive form of bitcoin like money laundering, scamming and promoting fraud projects that has run by a team. Thus, team member shown in their website may not be their real identity. It lacks screening on the team members to an organized third party.

But banks are more and more controlled for a few years, especially the 2008 crisis. It' a lot of harder to dance in the Money Laundering nightclub.
The citizens too are more and more controlled (i.e.: Big Data used by the Taxes ministry, algorithms used by banks),
The percentage of transactions related to illegal activity has dropped by more than half in the last five years, which means that they are no longer interested in using Bitcoin.

Banks have been laundering money for the longest time, what fox and others are saying about money laundering in crypto is that they can't really catch you do that if you are smart enough about it. Which means, even if you are the biggest bank in the world, when you launder money people can find you, IRS can find you and you will have to pay a fine for that. However, if you are doing it on crypto and use a privacy coin like xmr or whatever than you will not be caught and you will be easily laundering money.

The trouble here is not that crypto will be used for money laundering, of course it will be used for money laundering, of course it will be used for drug money, of course it will be used to hire hitman to kill someone, all bad things will be done. However does people think what humans used before crypto came out, before 2008 ? What were they using and currently using as well ?

Well, they used fiat to do all of that and currently still using fiat as well, crypto currency is just one more currency that gives that option, nothing extraordinary there.

You're kinda preaching to the choir here

I've said it before and I say it again -- most anti money laundering measures only hit the general populace. The big money is for the most part unaffected. Whether that's due to malice or incompetence is a different question and a tricky one at that.



...of course they do.

People who believe Fox News...
https://www.foxnews.com/tech/bitcoin-is-leading-to-a-huge-upswing-in-money-laundering-new-research-says

Who really says that Bitcoin was made for money laundering anyway? I mean, I guess it can make it easier, but it also potentially makes it easier for authorities to track you down. Whoever truly believes this statement is either ignorant or biased. I'm not sure where to place banks that say this, but they're certainly hyprocrites lmao.

A lengthy response to the claim that "bitcoin was only created to launder money"

Bitcoin’s Affect on US Banks Money Laundering

While the US banks are crying about over-regulation and Fox News reports that crypto increases money laundering to their viewers in America, we thought it would be fun to see how much money American banks have laundered over the last decade.

Since the taxpayers covered the $21bn cost to bailout the banks a decade ago, they’ve surely learned their lesson and changed their ways.

While there is dispute in the press and government about the cost of regulating the financial industry being between $1.2 trillion or $2 trillion annually, the costs could easily be brought down if taxpayers realized how much money laundering is continually being found in the banking system.

Money Laundering and Manipulation by US Banks

When JPMorgan paid $65 million for manipulating the benchmark for interest rate derivatives, it took regulators years to investigate and prove, while the bank was allowed to pay a fine and neither admit or deny the regulators “claims” of wrongdoing. Goldman Sachs paid $120 million for the same fraud investigated by regulators.

Bank of America paid $30m to settle charges it manipulated global interest rates for 6 years on customers purchased products from the bank.

In 2006, when Bank of America admitted to allowing $3 billion to be laundered through a single Manhattan branch, the bank claimed in a statement to “take seriously it’s anti-money laundering obligations.”

Years later Bank of America paid $17 billion in penalties for profiting off loans they knew would never be paid, while mocking the “due diligence” processes regulators required.

Their fine for not following money laundering procedures in 2017 was only $13 million. The “allegations” date back to 2010 and 2011, so the investigation and time for settlement negotiations must have cost the tax payers a lot for that one.

Citibanks Money Laundering Fines

Citigroup puts so much effort dealing with money laundering “allegations,” it’s hard to imagine they have time to manipulate global interest rates.

They still found the time to manipulate interest rates though and overcharge customers back in 2008 and 2009. Citibank paid a $100 million fine this year for the fraudulent activity. That’s almost ten years regulators and lawyers had to negotiate after a crime was committed for a settlement and story to tell the public.

They were also fined $70 million in 2018 for failure to comply with anti-money laundering laws.

In Ireland, Citibank was fined €1.33 million as well this year for loan breaches, we’ll stick to the US fraud with these global banking giants, for the most part though.

In 2015 Citibank were ordered to pay $700 million in consumer relief for illegal credit card add-ons charged to customers. If consumer fraud against 7 million banking customers isn’t a good way to market buying bitcoin, we don’t know what is.

In 2017 Citigroup kindly agreed to pay a $97 Million settlement for laundering money in Mexico after their Banamex USA federal investigation took years to uncover the banks misdeeds.

JPMorgans Illegal Activities

Some might say Citibank is just one bank that had some bad apples, it’s no reason to “bank on bitcoin” in the US. They never followed JPMorgan and their illegal activities over the last few years.

JPMorgan admitted no wrongdoing when paying $2.8 million in 2017, for eight years of lacking proper safeguards for customers.

In 2014 though, JPMorgan paid out whopping $2.6 billion to settle “allegations” that they helped Bernie Madoff rob people for 20 years. Then they settled other “claims” that they assisted Madoff with theft but it was only $218 million and $325 million to settle those.

Bernie Madoff’s Ponzi scheme was estimated to have cost investors between $12 and $20 billion. He was on the board of governors of the National Association of Securities Dealers, now called Finra. He also helped create the Nasdaq stock market, where JPMorgan earned the $3 billion it paid to settled for their connection to him.

That was only a couple of months after their 2013 settlement, where JPMorgan paid $13 billion for selling fraudulent loans to customers.

JPMorgans CEO earned $20 million in 2014, $18 million in restricted stock, for helping the shareholders stop worrying about all the “illegal activities” they were caught for.

Wells Fargo Fraud Scandals

Wells Fargo has been a nightmare since it was caught creating fake bank accounts using their customers details. Their recent SEC settlement for $5.1 million was from 2009 to June 2013 “allegations” (they never admit wrongdoing, ever) they stole fee’s from customers like other banks do.

The $1 billion fine Wells Fargo agreed to pay in 2018 for “bad acts against customers,” along with the $2 billion fine from the decade old mortgage financial crisis.

They were also one of banks that banned buying bitcoin in the US with their credit cards.

Perhaps bitcoin having a controlled supply of 21 million coins conflicts with the banks and federal reserve belief, to create money and never be audited are benefits to everyone who values the US dollar.

Bitcoin wasn't created to help money laundering anymore than banks were created to pay fines and admit no wrongdoing.


Source: https://www.bestbitcoinbuyers.com/2018/11/14/bitcoin-will-save-us-taxpayers-millions-wasted-investigating-and-regulating-the-banks-money-laundering-schemes/