KYC Laws - Reading Assignment

Privacy Coins - Ultimate Course
#242

  • Who writes KYC/AML laws, and what is their “official” purpose?
    Governmental organizations create this laws “officially” to prevent money laundering.

  • What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Passport/ID and at least all the data that is within.

  • Who is responsible for enforcing KYC compliance?
    “Providers of crypto-related services, such as exchanges and custodial wallets, are considered “obliged entities”” also “investment firms, tax advisors, accountants, notaries, and lawyers who transfer or receive payments equivalent to €10,000 and more.”

  • How is KYC a threat to privacy? Who might gain access to what ?
    Because if the link between public addresses and individuals gets “leaked”, the ones who get that (theoretically only governmental organizations) will be able to access data such as balance and transaction history of a specific person.

1 Like
#243

1.- To prevent money laundering.

2.- As much personal data as they can, address, bank account, etc.

3.- Exchanges

4.- It is now x100 easier to link your transactions to your personal profile, now its easier to know what you have been doing lately or how much money do you have in your wallet, this wouldnt be an issue if it wasnt linked to your actual identity.

1 Like
#244
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Regulators write them for the purpose of preventing money laundering.
  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    They might ask for a picture of your passport, a selfie, information about where you work, where you live, or other types of data.
  3. Who is responsible for enforcing KYC compliance.
    The exchange.
  4. How is KYC a threat to privacy? Who might gain access to what?
    The exchange might store your data in an insecure way. Anybody might gain access to your personal data.
1 Like
#245
  1. regulators. trying to keep people honest
  2. pictures of government issued IDs & selfies
  3. exchanges have the burden of compliance
  4. by storing your personal information. anyone who can get access to your personal information can wreak havoc in your life
1 Like
#246

1)Regulators enfore these laws to keep money laundering from occurring
2) personal info like a photo of yourself with a government issued ID or where you reside and your email.
3) Exchanges. when the regulators apply pressure, it does not affect the individual user of the exchange directly. It forces the hand of the exchange that wants to keep operating so they reflect that pressure onto their users.
4) hackers can gain access to your personal data. exchanges can know much more about you like when and where you’re sending your money. In other words, privacy is no longer achieved.

1 Like
#247

Rules and Regs are laid down by FATF via AMLD directives under the authority of government agencies.
Photo Proof of ID, authorized proof of address…and more
Enforced via service providors for now; exchanges
CAn lead to loss of data and personal info leaks

1 Like
#248

  1. Who writes KYC/AML laws, and what is their “official” purpose?
    FAFT under the banner of anti-money laundering AML

  2. What type of information is usually collected for KYC compliance?
    Passport, residence, place of work, photo, photoID, phone and email

  3. Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)
    The exchanges are to report transactions totaling > $10k USD at present

  4. How is KYC a threat to privacy? Who might get access to what ?
    Governmental surveillance agencies can get access to the identities of clients and their associated addresses. Which can then be used to triangulate transactions and their histories and ultimately reduce anonymity in a blockchain

1 Like
#249
  1. Financial Regulators of various world governments write KYC/AML laws. Their “official” purpose is to limit any criminal/suspicious financial transactions in Crypto markets. Rather ironic considering HSBC Bank were caught and fined for money laundering for Mexican Drug Cartels just a few years ago, and they will be just the tip of the iceberg in the Legacy Financial System.
  2. Identity documents. Photo, name, address, employment details, etc. etc. Great for Tax Authorities.
  3. Financial Regulators will close down any businesses that operate within their jurisdiction that fail to comply with these regulations.
  4. KYC is a real threat to your privacy from hackers as history shows that badly secured data bases are often raided. See the bad outcomes of the Leger Wallet hack of customer details relatively recently.
1 Like
#250

1. Who writes KYC/AML laws, and what is their “official” purpose?

Governments and state (FATF and AMLD5)

2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)

They require a selfie, address, ID or Passport and a with your name sign saying this is you.

3. Who is responsible for enforcing KYC compliance?

Any company dealing with moving clients money and cryptocurrency ( Centralized Exchanges and Custodial Services )

4. How is KYC a threat to privacy? Who might gain access to what ?

KYC goes against what cryptocurrencies are. TXs must be anonymous in accordance to good user ID, IP shield practices. Governments are collecting data on Exchanges users under KYC, and private information could be later exposed without your approval.

1 Like
#251
  1. The Financial Action Task Force (FATF).
  2. A passport or other form of identification, a selfie, information about work/living and other types of data.
  3. The exchanges.
  4. Hackers can get access to terabytes worth of PII through, oftentimes, very easy methods from unsecure exchanges. After all, equifax got hacked in an embarrassing way, so it is not far fetched to assume the worst in crypto exchanges.
2 Likes
#252

The Financial Action Task Force (FATF) writes the KYC/AML laws. The purpose is to curb suspicious activities and exert tight controls.

Passport, selfie, work, home address info are collected.

Exchanges.

Anytime you expose your sensitive info to companies, you are hoping that the companies would keep those information safe.

2 Likes
#253
  1. The know your customer or know your client ( KYC ) guidelines in financial services require that professionals make an effort to verify the identity, suitability, and risks involved with maintaining a business relationship. The procedures fit within the broader scope of a bank’s Anti-Money Laundering (AML) policy. KYC processes are also employed by companies of all sizes for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant, and are actually who they claim to be. Banks, insurers, export creditors, and other financial institutions are increasingly demanding that customers provide detailed due diligence information. Initially, these regulations were imposed only on the financial institutions but now the non-financial industry, fintech, virtual assets dealers, and even non-profit organizations are liable to oblige.
#254
  1. KYCC or Know Your Customer’s Customer is a process that identifies a customer’s customer activities and nature. This includes the identification of those people, assessing their associated risk levels and associated activities the customer’s customer (business) is involved in.[10]
#255
  1. KYCC or Know Your Customer’s Customer is a process that identifies a customer’s customer activities and nature. This includes the identification of those people, assessing their associated risk levels and associated activities the customer’s customer (business) is involved in.[10]
    3.Exchanges
    4.Your Privacy
1 Like
#256

Who writes KYC/AML laws, and what is their “official” purpose?

Government agencies and they supposedly are intended to prevent money laundering and other nefarious activity out of their control.

What type of information is usually collected for KYC compliance?

Personal data, photo, address, bank account, etc.

Who is responsible for enforcing KYC compliance? (Hint: it’s not the government)

Companies involved in the trading or movement of money such as financial exchanges.

How is KYC a threat to privacy? Who might get access to what?

The risk is you need to trust the company you give your data to, it could be lost or sold on increasing your risk of being targeted by criminals, ad firms etc…

1 Like
#257

  1. Written by government agencies. The reason for there existence is to prevent money laundering and other illegal activities.

  2. Information collected is usually your address, passport picture, where you work and more.

  3. Centralized exchanges.

  4. If your exchange is compromised by a hacker your personal information could be in their hands. The information also links your identity to your wallet addresses.

1 Like
#258

1 They are written by Governments, states, and unions like the EU officially to stop money laundering and help tract ransomware attacks and acts of terrorism

2 Personal data

3 companies involving in the financial institution, companies, banks, accountants etc

4 your identity is at risk from hacking and over reach from governments

1 Like
#259

  1. The Financial Action Task Force (FATF) is issuing stricter KYC/AML laws and their “official” purpose is to deter money laundering.

  2. A person’s government-issued ID (with photo) is collected for KYC compliance, and any other personal data requested.

  3. Crypto exchanges (like Binance and Huobi) are responsible for enforcing KYC compliance. Other institutions also include banks and stock exchanges.

  4. The need for KYC discloses all details of a user to these exchanges, which defeats the purpose of privacy in Cryptocurrencies. Exchanges not only know who you are but what you are doing with your digital assets. Hackers can take advantage of KYC information and link your funds to you.

1 Like
#260
  1. Who writes KYC/AML laws, and what is their “official” purpose?
    Governments or specialized government agencies. In other words, regulators.
    Avoid money laundering and other crimes.
  2. What type of information is usually collected for KYC compliance? (Hint: it’s not the government)
    Personal information: proof of identity and proof of residence mainly. Also, they get bank accounts linked to the exchange and other sensitive information.
  3. Who is responsible for enforcing KYC compliance?
    Governement or specialized government agencies through the help and collaboration of Financial Institutions or, soon, Exchanges.
  4. How is KYC a threat to privacy? Who might gain access to what?
    KYC is a threat to privacy because it links sensitive information (which should be private) with the identity of people.
    Governments or specialized government agencies would gain access to sensitive information about all the transactions performed under that exchange or address, which will be linked with the identity of ordinary people.
1 Like
#261

  1. The Financial Action Task Force (FATF) writes KYC/AML laws. Their “official” purpose is to issue global standards for crypto assets.

  2. Your personal information is usually collected for KYC compliance.

  3. The AMLD5 is responsible for enforcing KYC compliance.

  4. KYC is a threat to privacy in that it is a global problem. According to the article, “former fly-by exchanges start cleaning up their act and enforcing KYC to appease regulators, as they eye global expansion.” In short, the AMLD5 or the FATF might gain access to personal information, a cryptographer’s transactions, etc.

Source: https://news.bitcoin.com/a-bitcoin-war-is-brewing-over-kyc/

1 Like