Posted 2 years ago | by Ben Armstrong
The Existing Financial System is Designed for Money Laundering – Recent Leaks Prove it!
It looks like the idea that crypto is the new way to launder money just doesn't hold up to reality.
A recent set of leaked US Government documents show that not only is a tremendous amount of dirty money flowing unimpeded through the established financial system – banks and the government aren't doing a thing to stop it.
Buzzfeed has published (parts of) what are being called 'The FinCEN Files' – and they are loaded with illegal information that was never supposed to see the light of day.
Here is what the news outlet had to say about the deluge of information,
These documents, compiled by banks, shared with the government, but kept from public view, expose the hollowness of banking safeguards, and the ease with which criminals have exploited them. Profits from deadly drug wars, fortunes embezzled from developing countries, and hard-earned savings stolen in a Ponzi scheme were all allowed to flow into and out of these financial institutions, despite warnings from the banks’ own employees.
Laws that were meant to stop financial crime have instead allowed it to flourish. So long as a bank files a notice that it may be facilitating criminal activity, it all but immunizes itself and its executives from criminal prosecution. The suspicious activity alert effectively gives them a free pass to keep moving the money and collecting the fees.
The Financial Crimes Enforcement Network, or FinCEN, is the agency within the Treasury Department charged with combating money laundering, terrorist financing, and other financial crimes. It collects millions of these suspicious activity reports, known as SARs. It makes them available to US law enforcement agencies and other nations’ financial intelligence operations.
This Looks Reeeeealy Bad
It is hard to start in on this – there is just so much there...
First – the insinuation that crypto is used extensively for money laundering or illicit global transfers is patently false – it is true that some criminals may use tokens – but the vast majority of major transactions appear to be flowing though the 'regulated' Western financial system.
The established financial system is wildly corrupt, and the increasing level of KYC requirements has not been able to impact bad actors who use the system for their own ends.
It is a terrible situation – and it won't be fixed by more corrupt regulations – or the abusive governments that enable the criminal class to operate with impunity.
Then – we have the fact that despite the totally ineffective nature of regulations and oversight – the failings of enforcement agencies are blocked from public view. This is a travesty, and people need to stop cooperating with a system that is designed to shake them down at every turn.
The Public isn't Supposed to Have Access to SARs
More than 2,000 separate SARs were part of the leak – and every single one was illegal to make public.
In fact, according to the Treasury Department,
“...the unauthorized disclosure of SARs is a crime that can impact the national security of the United States, compromise law enforcement investigations, and threaten the safety and security of the institutions and individuals who file such reports.”
So...letting multinational criminals use the banking system for their illegal enterprises is fine...but giving the public oversight on how poorly their government is performing is a crime.
The Treasury will be looking into the source of the leaks – although its time might be better spend looking for the criminals that are flouting US regulations – and moving huge amount of money around the world.
Of course, the bankers that knew about these crimes have not been held accountable – and they likely never will be. Much in the same way that fines are applied to money center banks – but the bankers themselves walk away with millions in pay and bonuses.
It is time for a change.
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