FINCEN FILES

Many of us will be surprised to learn who facilitates the most money laundering and terrorist financing. It appears of course, to be some of the world’s largest banks such as HSBC, Deutsche and JPMorgan Banks. These Banks have facilitated more than $2 Trillion in illicit fund transfers on behalf of Drug Cartels, Organized Crime, Ponzi schemes and Terrorist Financiers over the past decade despite repeated warnings and fines which have failed to limit these illicit money flows.

https://www.bbc.com/news/uk-54226107

https://www.icij.org/investigations/fincen-files/global-banks-defy-u-s-crackdowns-by-serving-oligarchs-criminals-and-terrorists/

It makes an absolute mockery of multinational banks, efforts to limit the spread of “Open Banking” initiative based on grave warnings that opening Bank APIs to Fintech startups would endanger society and impair the use of legal channels for the transfer of money. https://www.openbanking.org.uk/customers/what-is-open-banking/

The truth is many Fintechs, such as Ayodo Foundation a registered not-for-profit with a mandate to alleviate poverty by enhancing financial inclusion, provide services to essentially marginalized individuals, who’s net worth is so abysmally low, that the money transfer services Ayodo does provides are typically in sums less than USD 500, which is less than half the proscribed limits under the regulatory guidelines developed for prepaid products, an exemption Ayodo relies upon to not be deemed a Money Service Business (MSB) and to therefore avoid costly KYC, which is both difficult and unnecessary for our client base, many who remain unbanked, transact mostly in fiat cash and do not have proper government issued id anyway.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s