Money Laundering Laws Force Banks to Spy on Us, But They Are Ineffective Against Crime
by Dan MitchellThe University of Basel’s Institute of Governance recently published a map showing the nations most linked to dirty money. What made the map interesting is that only one of the 28 nations listed was a so-called tax haven, thus exposing the left-wing lie that low-tax jurisdictions are somehow hotbeds of dirty money.
A more fundamental question is whether anti-money laundering laws are an effective way of fighting crime. The evidence is not encouraging. The system costs billions of dollars each year. Banks are forced to set up expensive monitoring systems to snoop on their customers. They are then required to send reports to the government for all large or unusual transactions. Theoretically, these reports are supposed to alert law enforcement to patterns of criminal activity, but since banks are compelled to send millions of reports every year, it is impossible to sift through haystacks of data to find needles of criminal activity. This is why conservatives, such as a former Reagan Justice Department official John Yoder, think the laws do more harm than good. This six-minute video from the Center for Freedom and Prosperity explains why the time has come for politicians to reconsider the current approach.
Libertarians (as well as some honest left wingers) also dislike anti-money laundering laws because they substantially undermine privacy. The Constitution guarantees a presumption of innocence and protection against unreasonable searches. Those freedoms are eroded, though, when banks are coerced into treating customers like criminal suspects and required to share millions of reports on the financial transactions of innocent Americans with the government.
It is said that the definition of insanity is doing the same thing over and over again while expecting a different result. So perhaps you won’t be surprised to learn that statist politicians such as John Kerry (D-MA) and Carl Levin (D-MA) want to make money laundering laws more onerous and intrusive. That won’t have much impact on the bad guys, but it will mean less freedom for everybody else.
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43 Comments
While I agree with the premise of the video, I find this line is contradictory:
" This is why conservatives, such as a former Reagan Justice Department official John Yoder, think the laws do more harm than good."
Then Tax Code was changed, and Money Laundering Laws were put on the books during Reagan's Administration. From that day forward, anyone dealing in large sums of cash, or anyone who had a transaction that "flagged" suspicion, was suspect, and was summarily guilty of "something" until proven innocent.
It is nothing more than Government intrusion.
The federal government understands that it cannot legally perform breaches of privacy, so they sub-contract if you will, the job to those they control and regulate. Crafty at best, but still illegal.
This is the same as the whole Cap-and-Tax scheme falling apart. If they can't control "greenhouse emissions" through legislation, then they will just force, in this case the EPA, to do the business for them. It's unmoral, illegal, and deceptive at least.
I can only imagine how things would be different over this last year, if the Attorney General of the United States of America, was not appointed by the POTUS. It's the same as ACORN doing a thorough, impartial, unbiased, report of the actions, from a committee selected by them! It's lunacy at it's finest.
My business got caught in this web of SNAFU. Two audits and a gazillion dollars later I've got a letter apologizing to me for their behavior – I've got it framed on my wall. This is why I advocate for a fixed one rate tax on all income other than that derived from interest or investment, and a consumption tax. The percentage on both less than 5%. No deductions, exemptions of any kind – thus no debate and no enforcement from the IRS that will forcefully delve into our lives. The IRS will be more focused on transactions that do not require debate.
Bailouts, monetizing debt, call it what it is… Money Laundering! http://www.youtube.com/watch?v=I4jnsSDRepo
Great post.
I have gone through similar unpleasant experiences with the IRS, Treasury, and the Comptroller of the Currency. They epitomize everything wrong with Government. I have always won, always prevailed, yet in the scheme of things, being right means "So What!". I have never recouped the loss of productive time, nor the man hours, and dollars necessary to comply with this nonsense.
Luckily though Joe, guys like us can laugh it off, instead of crashing small planes into IRS offices in Texas.
Fair Tax is the SOLUTION!
NO more Gov spying. NO more IRS!
Be advised I do not bear the IRS any animosity. I do not blame the Robot. I blame the programmer. Congress.
Nor do I.
It is all in ones perspective. Guys like us can go through that BS, and laugh it off as one of lifes little unpleasant experiences. other folks dwell on it, and go mad.
I do not blame the robot, nor the programmer. I blame We the People, for not only allowing it, but for tolerating it as long as we have.
Ask who owns the Federal Reserve: Several court cases have held, for the incidents before the court, that the Federal Reserve BANKS (of which there are twelve, each independent, and each controlled by a Board of Directors with nine directors) are owned by the commercial banks who are required to purchase non-transferable “stock” as determined by the Federal Reserve BOARD OF GOVERNORS (BOG). The BOG has absolute authority to remove any officer or director (Title 12, Section 248 (f)) with, or without, cause. They also have authority “To exercise general supervision over said Federal reserve banks.” 12 USC 248 (j). Courts have stated that power is supervisory and regulatory. Commercial banks have the image of owning the FR Banks. They appear, in fact, to have purchased a franchise. Control of the FR SYSTEM is vested in the BOG which is a separate legal entity. 12 USC #241. The BOG can charge the FR Banks any amount to cover costs and expenses, including “to acquire…a site or building…for the performance of the functions of the Board.” and the Board “shall have sole control of such building or buildings and space therein.” 12 USC #243. Who owns or controls the BOG ? Some people suggest that the government controls them, but the hearings before congress seem to belie that. Bernacke specifically declared he would resist any attempt by Congress to control the Fed. Some people read Eustace Mullins’ SECRETS OF THE FEDERAL RESERVE and believe the New York bankers, operating as shills for the European Rothchilds, control the Fed. Since the accounting records of the BOG are unavailable for scrutiny, except for a three page overview/gloss in the Annual Report to Congress, it is impossible to disprove the claim. An enlightening piece of journalism relating to this subject can be had at:
http://www.rollingstone.com/politics/story/322551...
I'm a happy warrior:) One of the funny moments during one nightmare was when the accountant, the lawyer and the IRS agent all agreed – that the cost of defending the attack on my business was tax deductible. I lost it, I could not stop laughing.
That should be Carl Levin (D-MI) not MA.
Read the Wall Street Bailout Hustle at Rollingstone.com for added insight for how your elected officials perpetuate and allow the continuance of the what is nothing more than ponzi-con-scams.
see: rollingstone.com the piece is politics/story/322551/wallstreetbailouthustle
I read Boortz's book too complex for Congress and the Robots.
In a democracy (or a democratic republic, such as we have here), the people as a whole get EXACTLY what they deserve. So your blame is correctly placed.
Monopolies and conglomerates, in most all cases, cause market disruption and create corrupt marketplaces.
The U.S. Media is a predominate mix of just 5 conglomerates, the majority of which is owned and controlled by foreign sources. Until such time the media monopoly is deregulated and broken-apart, expect more corruption.
The Federal government has reached the point of monopoly; its size and reach is such that there is nothing in the country [or in the world] that is able to effectively compete. The state governments have been relegated to "divisions of", rather than "independent operating units". Until such time the Federal government is brought back down to its Constitutional size and authorities, expect more corruption.
There are 300+M U.S. Adults. Only 110M U.S. Adults VOTE. It is estimated approximately 25M U.S. Adults hold accurate knowledge about the U.S. Constitution et al.
Given these realities, it seems, only an act of God will keep this ship from the abyss.
Boortz, as in Neal Boortz? Best Conservative radio program there is, in my opinion.
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The $10,000 transaction mentioned was changed after 9/11 was lowered to $5000 for banks to report, so
be warned. I no longer do any bank, retirement funds transactions, or cash withdrawals over $4500.
How many cops on the beat will would 15 billion employ? Cops catch bad guys, not tellers.
gzr,………do you know if your # is nation-wide or state by state. I remember reading 3K or 3500 for cash
trans. I assume it is fed law, can't figure out where I got the lower #'s.
How much damage does this gov't (and credit agency) snooping do the economy? I have been dodging parasitic relatives who LOVE being able to find out how much I make and where I keep my money. Result? I use mostly US money orders. (Can't buy more than, IIRC, $3000 per visit or cash. Both are good for keeping me from spending foolishly, or wisely for that matter.)
(Never been married, no child support. These are cousins, nephews, etc.)
Excellent article and yes, there is evidence that the Rothchild's are behind the Fed Reserve even today . A private institution that literally controls our destiny. It's time to get rid of this corruption.
Copies of your money orders are on file at the post office forever. Once your creditor cashes them they are scanned and stored automatically.
Money Laundering Laws Force Banks to Spy on Us, But They Are Ineffective Against Crime by Dan Mitchell: What a joke. Everything is done for a purpose and it is not for the good of "we the people," unless you mean the demonic politicians running our government! Everyday the Constitution is being broken in all departments of Government, especially in the House, Senate, and Judicial! Out and out treason and there is nothing that anybody can do about it because we the people literally gave this country over to those to have vowed to destroy us! Can't call it illegal because they (Satanists) control all avenues of government! There can be no other rational explanation!
[...] from: » Money Laundering Laws Force Banks to Spy on Us, But They Are … tags: defence, defence-secretary, institute, map-interesting, map-showing, most-linked, [...]
These laws can be disastrous for bankers, also. Had a relative who retired from banking, to the Txz
Hill Country, didn't like retirement, found a tiny bank, glad to have his expertise, to run. He could work
part time, set his own schedule. He OK'd a loan, his VP made to some real estate investors, Mexican
Nationals. Circumstances of the loan were not unusual for San Antonio & surrounding area banks.
You guessed it, they turned out to be drug dealers, DEA & Justice Dept ruined his retirement. Spent
a fortune & 10 yrs getting lose from the deal. Only lived about 5 years afterward, sad for him & his family.
I think the black mark on his reputation, was his death knell. Many acquaintances would never be 100%
sure he was innocent. He had run a small bank his entire career, without so much as a question on his
integrity.
Gave one of my kids $10K to help with purchasing a house and had to become a professional hoop jumper.
No more than 9.99 percent–my god only wants 10%.
The government doesn't want you to help your children. Heaven for bid. The welfare state will lose potential customers!
[...] See the original post here: » Money Laundering Laws Force Banks to Spy on Us, But They Are … [...]
Banks have gotten as paranoid as our government.I have had problems "giving" them money….
dwh, what banks are paranoid about is running afoul of how their regulators, FinCEN or the DOJ will come down on them for violations of AML laws. A monetary penalty running into the tens and even hundreds of millions of dollars is not without precedent. And not only that, when a bank files an application to expand or buy another bank, the approving federal agencies are required by law to consider the bank's compliance with AML laws. If the bank has a tarnished image, then the application might not be approved or approved with expensive and draconian conditions. So you see, banks are over a barrel to comply with AML rules, not doing so, can have serious repercussions in many different areas — not to mention shareholders upset at a lower stock price.
Thanks for your interesting post.
I should really expand my personal understanding of the financial associated fields.
I will look forward reading a lot more of your posts as soon as I can find the time.
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[...] » Money Laundering Laws Force Banks to Spy on Us, But They Are … [...]
ok so the government gets to spy on us. criminals stop putting more than 10k in cash into the bank per month. CONCLUSION: another law which imposes on my rights that i get NOTHING out of….
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