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Wealth & Economics > Anti-money laundering

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message 1: by Nik (new)

Nik Krasno | 16030 comments This entire notion is pretty fresh, maybe 20 years old, but it engulfed the global banking system, sometimes so much that it becomes pain in the ass even for pretty trivial transactions. Sums lacking sufficient substantiation can be frozen or denied crediting or returned to the remitting bank. The slogan is nice - fighting black and illegal capital.
But on the deeper level, can it be a guise for 'old' money, part of which was 'laundered' centuries/decades ago, preventing 'new' money from entering the game and thus obstructing amassing of assets by new players? What do you think?

message 2: by Ian (new)

Ian Miller | 11762 comments I am not sure, Nik. I have always thought it as much an exercise in political power as anything. The countries that have the power can freeze assets of people they don't like, especially assets that were put there historically for safe keeping. Because they were there to stop their own government confiscating them, they can be assigned as "illegal" and hence frozen. It is true that drug money, etc, is caught, but equally a number of other relatively legitimate things can be caught up if they are politically incorrect

message 3: by Nik (new)

Nik Krasno | 16030 comments One thing I learned there are fewer pure coincidences than there appear to be-:) If some fierce competitors charge close to/exactly the same price for their seemingly competing products, for example, it might well be that they are not really competing.
For centuries or at least long decades Swiss banks kept impenetrable bank secrecy, which all of a sudden started to crumble in sync with Eastern European and Asian countries embarking on a moneymaking course. Might not be random.
Of course, freezing the money is political and money-laundering procedures provide those formal instruments to make it look impartial.
It's like we read about mafia - when they had hardships procuring evidence for their criminal activity, they went for tax evasion to put them away.
On a core level - I'm against illegal capital, but I suspect we might see a lot of double standards in application of the new regulation as well as regular businessmen suffering from ricochets

message 4: by Ian (new)

Ian Miller | 11762 comments If this trade war gets well established, I suspect there will be a lot of illegal money being moved because smuggling, etc will become more of an industry.

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