AML / KYC money laundering


#1

As bisq is not allowing communication between customers, how can any AML measure be taken ?

I mean , if I get several transfers from a client and I cannot have his ID , or even worst, if I get large amounts of money and cannot check the source of the funds… how will I explain in the court this situation if the time comes?

Thanks


#2

Bisq team is quite proud of the fact that it doesn’t require any KYC verification. Privacy is an important aspect of a decentralized exchange and financial freedom provided by it.

If trading Bitcoin is illegal in your country without KYC and you don’t want to take any risks, you shouldn’t trade on Bisq. Bisq protocol forbids any mention of Bitcoin or Bisq in payment reason fields in fiat transfers, so privacy of your trades are pretty good.

Bisq is built primarily to provide users freedom, privacy and security, not so much to follow every crazy regulation that some countries might come up with.


#3

I doubt that you could verify the source of fund just by being able to contact the peer. The Fiat transfer happens always over banks and they are do AML/KYC so if they do their duty there must not be money from illegal sources. Furthermore you cannot transfer large amount of money in Bisq. 0.25 BTC is the max. after your account has reached 3 months.


#4

Is not true. Money laundry can be performed via bank , there are multiple ways to do it indeed.


#5

So that means AML is not working.
Or other question: If even the banks with all their expensive and overbroad approach fail how should a normal user be able to detect “dirty” money?


#6

EXACTLY !!! This is what makes me angry about all the whole situation , banks are not doing what they are supposed to du “by logic” but the users are the ones who have to be careful. Is not fair at all indeed.


#7

“As bisq is not allowing communication between customers”…

That’s not true. I contacted 3 sellers when I started trading either via text or email to resolve issues, and had positive experience. There was no need for ID, just basic communication skills.

“if I get large amounts of money and cannot check the source of the funds”
Trades >10k are automatically reported by banks. Smaller trades, if banks suspects something. If you receive a bank transfer from another person, and the bank is mediator, the bank is required to do KYC, not you. If none of the aforementioned is initiated by banks, a court order is required to access your bank records; and a reason/justification is required to obtain a court order. So what is the reason why gov. would want to go through hassle to look at your account?


#8

@Noah he didn’t talk about government looking into your account.

Regarding AML, indeed you can’t do it on Bisq. Banks will deny future business with clients that receive transfers from illegal sources. You can argue that they were used as a mule, but their “transgressions” are registered, like for us clients. For example, other banks may not do business with a certain bank if it is known to allow clients that use them for illegal businesses.