There are many businesses that operate just across the border from the U.S. in Mexico. They have American customers who want to pay with U.S. dollars. The businesses usually don’t mind getting paid in dollars.
Unfortunately, the U.S. government can’t limit itself to causing havoc on American businesses. The U.S. laws are affecting businesses just across the border, as banks are having to close customer accounts due to fear of the government.
For example, there is a restaurant in Nogales, Mexico that has been around for over 4 decades. But the owner was notified a few months ago from Chase Bank that it was closing down some foreign bank accounts, including that of the restaurant.
The main reason is U.S. anti-money laundering laws.
Chase has been cited in the past for failing to have adequate oversight and controls in place against money laundering activities and is one of the reasons the bank was fined billions of dollars.
So it is now the responsibility of banks to ensure that money laundering is not taking place. Should the banks also be obligated to make sure that people are paying their taxes? Should they be obligated to make sure all of the money going into their accounts was obtained legally?
Ironically, because of these insane regulations, many border businesses will eventually not be able to find any American banks to do business with. Many of them will essentially be forced to operate in all cash and not use credit cards. Money laundering is easier and more likely with cash.
It is just like most other government programs. The results end up being almost the exact opposite of what the original stated purposes were. The anti-money laundering regulations will lead to more money laundering.
Money Laundering
Of course, most people can’t even define money laundering. It is basically a made up crime. It is one of those purposely vague laws that has no clear definition. It is there so that prosecutors can fine people and send people to jail when they can’t get them on other convictions.
Why do we need money laundering laws? If someone commits a crime such as stealing or embezzlement, then he or she should be charged with that crime. You don’t need these ambiguous money laundering laws.
Money laundering laws are derived from the typical crimes that are usually cited to encroach on our civil liberties. It usually involves terrorism, tax evasion, or drugs. Of course, tax evasion and drugs are non-violent crimes. They are victimless crimes. They are not really crimes at all.
It is ridiculous to expect banks to monitor these things. It is also ridiculous that so many innocent people have to pay a price for it. In this case, it is business owners just across the border who are providing goods and services to people who want to pay with U.S. dollars.
This is a strike against liberty from bureaucrats making up laws as they go along. These laws and regulations are undefined and hurt innocent people while doing little to solve or prevent any actual criminal activity.
The U.S. government will only drive these businesses underground. They will start dealing in cash, or other currencies, or bitcoins, or silver coins, or some other method. The free market, or what is left of it, finds ways around government regulators. But we still pay a price for all of these anti-business laws and regulations.
If the government bureaucrats want to crack down on money laundering, perhaps they should examine their own books. Almost every asset owned by the government was obtained through force or fraud.
