When I reviewed due diligence for a large Wall Street Bank, I got good at spotting traps and black holes in customer documentation. But the Bank I worked for wouldn't press for due diligence if such requests would upset the customer or the trader, who was on boarding the customer. Ultimately, the Front Office controlled the due diligence collected by the Legal Department, just like big business interests control all legislative attempts to regulate reforms in corporate governance.
Meanwhile, Chase is closing all bank accounts held by porn stars, and HSBC has been on a scorched earth campaign to close down all small business banking accounts. Whereas banks are instructed by regulators to put classes of customers on "watch lists" if there is a potential for exposure to money laundering, organized crime connections, drug-running, arms sales to terroristic states (like Iran), other sanctions lists, etc., the truth is that many big banks are situational in how they comply with their watch lists. Recently, many large American banks (wrongly) initially refused to accept customers tied to the (now) legal marijuana business in the states that just legalized small quantity sales. Is the crackdown on legitimate small business, sex workers, and legal marijuana businesses just slimy PR stunts intended for banking compliance departments to show regulators that the banks are minding their watch lists ?
- RELATED : Chase Bank Slams the Door on More Porn Stars (XBIZ)
- RELATED : HSBC closes least-profitable small business accounts (HuffingtonPost)
- RELATED : Swiss Bank Apparently Unfreezes Iran Arms Sales Account (The Los Angeles Times)
- RELATED : U.S. Arrests 3 in Immigration Marriage Fraud (The New York Times)
How are small businesses supposed to transact business ? How are porn stars expected to deposit pay checks, pay bills, use their credit card, and pay their publicists and agents ? How can people buy space cakes, if legal marijuana businesses can't deposit sales receipts, pay suppliers, pay taxes, and otherwise maintain their enterprise as a going concern ? This is all cookoo !!
