Paypal anti-laundering safety regulations
I have been an active Paypal user for a while now, and I was surprised when Paypal sent me a letter asking me to verify that indeed I am not laundering money. Do I need to send photos of my apartment so it is apparent I do not have a printing press at home?
Nope, I needed to send some ID and utility bills. The process was fairly simple, I took a photo of my phone bill, my AmEx report and both sides of my National ID. In the Paypal documentation they say a phone bill is not ok, but since my apartment is not on my name I don't pay bills per se. Nevertheless, I sent these all off.
After some mucking about (the form was not the best), Paypal accepted these documents and this, as a lot of government and verification processes puzzles me a bit. I mean I could've Photoshopped all that right? Unless they actually checked with my government and bank and carrier service, which I'm sure they didn't, they replied in like 2 days, they can't be really sure.
My reasoning is that someone like me would have to go to more trouble to prove his identity and location truthfully, than a money launderer would have to go to to forge this stuff. If I didn't have a camera I would've had to spend about $30 to photocopy, print, scan and so on. A money launderer may have to pay $1,000 for a good forgery, but hey, he has a printing press right, money comes easily.
The point is, that all I proved is that I have an Internet connection and probably an ID. Is this a process that is supposed to deter people on the wrong side of the law? I doubt if it does, it did deter me though, my account was even frozen for a while!Advertisement