Re:MasterCard to stop processing payments on Pornhub, cites ...
by dcolkitt on Thursday December 10, 2020 @04:21PM
(#25378869)
> any enterprise has an obligation to not help another person or enterprise engage in crime
This is true. But the standards applied to financial transactions are way more stringent than other businesses. KYC/AML laws basically create an affirmative obligation for financial institutions to proactively determine whether each and every customer is engaged in illegal activity.
Unlike in other businesses, it's not enough to just say that you weren't aware of your customers intentions. Unless you've taken efforts to affirm that all their activity is legal, you can be criminally liable.
If some guy walks into a bakers and asks, "What's the best cannoli to bring alone to a mob hit", then the baker is obligated not to do business with him. But the equivalent of KYC/AML would require the baker to verify and document that none of the pastries are being used for illegal activity.
This is true. But the standards applied to financial transactions are way more stringent than other businesses. KYC/AML laws basically create an affirmative obligation for financial institutions to proactively determine whether each and every customer is engaged in illegal activity.
Unlike in other businesses, it's not enough to just say that you weren't aware of your customers intentions. Unless you've taken efforts to affirm that all their activity is legal, you can be criminally liable.
If some guy walks into a bakers and asks, "What's the best cannoli to bring alone to a mob hit", then the baker is obligated not to do business with him. But the equivalent of KYC/AML would require the baker to verify and document that none of the pastries are being used for illegal activity.