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Cryptocurrency discussions / Re: Block Inc. (formerly Square) is in big trouble
« on: Today at 08:52:02 PM »What makes this case so special to them though is because this is a financial company offering payment services, it can be easily abused for money laundering by all sorts of sanctioned entities and then the SEC gets invoked, OFAC gets involved, and so on. There are a lot more "sniper feds" with the targets on fintech than most other industries.
The problem itself is not that the system can be abused for money laundering, for that there are several mechanisms and filters that once applied would make it very difficult to commit these acts. The problem is that the system sometimes "invites" these acts. With very lax AML policies, with holes in the system depending on which countries the money comes from, with low commissions to attract more clients without applying the filters that I mentioned before... If AML policies were strictly enforced, the annual profit would be much, much lower than the current percentage, and logically, companies that process payments are not interested in that.