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PayPal To Pay $7.7 Million For Sanctions Violations

Posted by samzenpus on from the pay-up dept.

jfruh writes PayPal may not be a bank, but it's still legally required to follow regulations on transferring money — but the company has admitted to a number of violations, including allowing transfers to an individual specifically sanctioned by the U.S. State Department for helping proliferate nuclear weapons. From Ars: "On Wednesday afternoon, PayPal reached a settlement with the US Treasury Department, agreeing that it would pay $7.7 million for allegedly processing payments to people in countries under sanction as well as to a man the US has listed as involved in the nuclear weapons black market. The company neither confirmed nor denied the allegations, but it voluntarily handed over its transaction data to the US Department of Treasury’s Office of Foreign Assets Control (OFAC)."

4 of 68 comments (clear)

  1. Not a bank? by plopez · · Score: 4, Insightful

    1) They take deposits
    2) They make payments
    3) They charge fees
    4) They make loans

    How exactly do they differ from a bank? If it walks like a duck and talks like a duck.....

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    putting the 'B' in LGBTQ+
    1. Re:Not a bank? by Kenja · · Score: 4, Insightful

      They are "not a bank" in the same way Uber is "not a taxi service". It's all down to avoiding regulations.

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      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
  2. Democracy in action by Dunbal · · Score: 5, Insightful

    That's the nice thing about lists. The government says you're on it, and that's that. No proof required. No means to defend yourself or prove your innocence. Nope, you're on the list, and now we're going to bully everyone and cut you out of all the conveniences of modern life. Those who don't co-operate, well, you wouldn't want to be "aiding a terrorist" now would you?

    The "free" world has gone insane, and I despair when I see a whole new generation growing up that doesn't seem to have a problem at all with this modus operandi.

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    Seven puppies were harmed during the making of this post.
  3. Re:Using PayPal to pay for a nuke... by rtb61 · · Score: 3, Insightful

    So paypay needs to do exactly what mastercard does when it comes to paying bribes and laundering money. Issue business debit cards that are not in the persons name. They give the bribe recipient the card and the bribe recipient can spend the money available, with all expenditures going against the laundering companies income tax and all purchase by the bribe recipient are hidden. So basically they give birth to fake people, as corporations and the corporate pretend person spends the money not the real individual who is actually the corporation. Why do you think they bother with all that paperwork, lie, cheat and steal, it is simply how they deal.

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    Chaos - everything, everywhere, everywhen