I actually think that most of the items in the Patriot Act dealing with
finance must have been made by people who don't have a clue about the
business.
Point in case:
We [ www.cyfrocash.com ] used to buy endorsed, third party cheques to
allow foreigners to easier do business in the US and vice-versa.
Things went well and we kept records of transaction details, although as a
non-bank we don't have any reporting obligations.
Then came the Patriot [Parrot?] Act and our bank informed us that they
can't accept third party cheques anymore - even if we had been dealing
with individual clients for years, had photo IDs on record, met some of
them in person, etc.

This would have cast the 'Die' for about 70% of our business.
But, guess what? It's perfectly all right to present cheques that are made
out to us of course.
So, now our clients ask their customers to make all cheques out directly
to us, send them to us, we cash them and forward the money. Things got
much easier for us...

And you know, they shot themselves in the foot with a large calibre. This
is why: Before we had traceable records of everything. Now, under the new
rules there is no third party paper that mentions the name of the
recepient. Meaning, to proof wrongdoing of any of our customers the GOV
now only has circumstancial evidence, rather than actual records.

It's insane, but the new rules would have turned a legit cheque buying
service into, well, a money laundry heaven - if we didn't have an eye on
unusual transactions - which, as a non-bank we are not obliged to do
unless the total value of single transactions exceeds $10,000 [and even
then its arguable how far our obligations actually go].

To get to the point: As long as rules are being tightened for legit
businesses and at the same time create huge openings for criminal elements
the people who tighten the rules are building themselves springboards for
much worse rules to come...

The only thing that keeps operations clean is the goodwill of the
operators or processes complicated enough for criminals to bother.



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