Never Heard of AML ( anti money laundering ) Until Yesterday

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I have never really come across that issue of money laundering; I guess we are just all busy doing our things and trying to make an honest living, the majority of us wouldn't have the first clue.

What Is Anti Money Laundering?

We all live in jurisdictions, and each has its particular laws that govern how our various societies work.

Anti-money laundering is about the set of laws, regulations, and procedures which are designed to monitor the flow of money and in turn, hopefully, stop folks from disguising funds that are obtained from illegal or dodgy sources as legitimate income.

Two sides to the coin.

I had never heard of it, and most likely, a lot of people will be in that category. There has been an obligation placed on banks, accountants, and financial organizations to monitor the flow of money in regard to their customers.

We are exposed to it;

When we open a new bank account. We will be required to provide identifying information, usually three forms as an example passport, driver's license, and some kind of written identification less than six months old that associates you with a particular physical address.

In the trade, it is referred to as Know Your Customer (KYC).

What firms do to comply is to do due diligence on their customers and clients. What are they up to, how do they generate income, and how does that income flow through their accounts.

I have been with my accountant for about the last 16 years, and over that time, you get to know people, so we kind of know all those small details.

It was interesting when I was contacted this week by my accountant's office with a request for an interview. And the invitation to supply documents to verify my identity, so that they can continue to act on my behalf.

I am me, and they know me. No, I have to prove that I am a real person with an actual address and not some virtual reality.

I kind of thought about it and anyone that viewed the accounts of an online marketer would be left scratching their heads; I would say that 9 out of 10 online entities have names that you wouldn't associate with their businesses or activities,

Most marketers operate across borders and usually in different currencies, the common denominator being at this stage the US dollar.

Money is paid to random entities well name and activity-wise.

Receive money from some abstract pay pal account, and it becomes another story. You can see a picture building, confusion on the part of the people over viewing your accounts.

A plumber is a plumber. We know what they do; you pay a plumber. It shows up on your bank account as plumbing services.

In my situation, I have to prove it is me. Not a problem; well, like most of us, much of our lives are online. Most businesses are in a push to move customers online when was the last time you received a letter from a business, company, or store I would say email, and now SMS is the communication of the day.

In my case, I travel between places, so don't have a fixed postal address other than post office boxes, life is online. I think that may become the case for many as we move further into the online world.

It seemed rather abstract that I now have to prove, that, me, is me.

I mean to say they broke the mold, there's only the one.

Something to think about, like all businesses, it can be a good idea to keep records and also let the surrounding people that provide services in the loop. That can add value once they get over the shock of it all.

We tend to take things for granted and can develop the idea that everyone understands, when, in fact, they do not.

It has been a week of learning all around.

Alex Evans.

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Recent Comments

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PayPal was fined several years ago by the U.S. Dept of Justice for violating AML rules. PP apparently processed some transactions from some questionable customers. Part of the settlement required PP to toughen up their AML efforts. At about the same time, PayPal limited a large number of affiliate marketers accounts for violating the Acceptable Use Policy related to pyramid schemes, MLM, etc. Part of this was attributed to the Traffic Monsoon program shut down by the SEC ($100+ million pyramid scheme).

Australia authorities are currently investigating PayPal's compliance with regulations related to AML.

PayPal operates in the U.S. as a money transfer agent. It is not a bank or financial institution and is regulated differently.

Hi Glen thank you for chiming in.

Pay Pal, is so interesting they are not a bank, yet to all intent they are a digital bank.

They operate to their own tenants, perhaps one of the many situations where technology is running ahead of legislation.

The MMO space is buzzing with people having their accounts being shut down, with out explanation and funds held for up to six months.

Your information could provide a reason why, firms get fines and they get a little gun shy, and tighten up.

Alex.

I was one of those who had their PayPal account shutdown.

After 15 years or so, mine was shut down without explanation. The only thing they said is that I violated their AUP.

While I still have an account, it is not technically shut down. I just cannot receive or send money. So the account is useless.

That acceptable use policy, chestnut it is so annoying when that kind of stuff happens.

It seems to be happening more and more, that would have caused issues for you Glen.

You have moved on to another payment gateway.

It would make things difficult because so many use Pay Pal to make payments WA included.

Thank you for sharing that.

Alex

Payment gateways are a big challenge because PayPal dominates.

I am using Zelle and Uphold as I can connect my bank accounts as I did with PP. I also get paid by check from one of the affiliate networks.

Years ago, I had a merchant account to accept payment on my website. But I didn't like the fee structure. So I went with PayPal for the convenience.

Yes, Alex. This is a big thing today. I had to deal with it regularly for 15 years when I worked for a group that owned casinos. That and banking are industries that has a lot of compliance for AML. Today, accountants too. It affected all my American friends who have difficulty opening bank accounts in some countries.

Have a great weekend.

- Stanley

Hi Stanely, thank you for sharing your experiences.

It is becoming an issue for many.

Compliance, a key factor.

Alex

Money laundering is a serious offence, hence one has to be transparent and be cautious of falling into this trap. However I have noticed that most of the affiliate programs do abide by the AML legislation because they have your records and tax information. You may not use your name in any platform, but you are known. It's good that you posted this information.

Hi Sandikazi, you are correct, money laundering is a big issue globally.

Becoming aware can be helpful.

Thank you for sharing.

Alex

It’s annoying but it’s necessary

Hi Josephine., well said, on both counts.

Thank you.

Alex

Interesting Alex...

I like your post.

Clarence

Hi Clarence, it is interesting and it is a real thing, I must have been under a rock.

We as marketers do business from the places we live and we do it all over the world by virtue of an online presence.

Alex

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