this is the first important non-intuitive thing about KYC and AML regimes: the goal is not to achieve banks having good knowledge of their customers or to prevent money laundering. It is to stochastically manage crime and terrorism at the margins by requiring an oft-unrecognized policy arm, the financial industry, to implement their own stochastic management of their books of business.
A particular important realization is that KYC and AML don’t have to be effective in their own terms to contribute to these goals.
KYC and AML: beyond the acronyms
from Patrick McKenzie (patio11)
- If all the burghers of Small Town USA get together and say “we want...from Matt Levine
- The only good advice I have here is to re-evaluate your metrics oft...from ferd.ca
- This, from last week, is [one of the best stories you’ll ever read]...from Matt Levine
- The law states that any circulating currency consisting of both &qu...from en.wikipedia.org
- But to tear down a factory or to revolt against a government or to ...from Robert M. Pirsig
- Every so often the US government thinks about defaulting on its deb...from Matt Levine
- Often, in making edits to a work: The ego comes in, saying: I wante...from Rick Rubin
- Infrastructure undergirds society; failures of it are a per se emer...from Bits about Money