Difference between revisions of "Know Your Customer"

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(Problems)
(Solutions)
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==Solutions==
 
==Solutions==
This is old style [[Identity Management]] where flows
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Solutions require risk reduction in two orthogonal directions:
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#Risk of loss of money by the bank,
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#Risk of loss of control of crime by the government.
  
 
==References==
 
==References==

Revision as of 09:20, 16 September 2018

Full Title or Meme

Depository Financial Institutions (aka Banks) are required by the Anti-Money Laundering legislation in all developed countries to Know Your Customer and report on large financial transactions by that customer's Identity.

Context

Crime needs money, governments have learned to "follow the money".

Problems

Governments, at least in the US, require community banks

Grameen

Money flows are leaving the Western style banking networks.

Block chain for money and Identity is an existential threat to the rule of law by hiding responsibility. If you can't find the perpetrator of a crime, you cannot control crime.

Solutions

Solutions require risk reduction in two orthogonal directions:

  1. Risk of loss of money by the bank,
  2. Risk of loss of control of crime by the government.

References