The Issue of Money Laundering in Payment Gateway

[sincerem]

I basically agree with you. It would be unfair to say that payment processors are the main reason why money laundering occurs. Just because a person or a group of people use payment processors in a negative way, that does not mean that we should blame the payment processors for that. The problem starts when the creator of payment processors themselves get involved in such illegal activities and this was what led to the shut down of Liberty Reserve.

You spoke admirably well dear. We shouldn't point accusations to payment processors when they aren't the ones who performed such kind of illegal transaction within their payment system. At times fraudsters targets them, just to paint them black,and tag them fraudulent. We'll only accuse them when they're the ones that performed the illegal operations just as you said concerning liberty reserve.

 

[Jasmine]

I don't know about payza. But you cannot use PayPal to launder money. They have strict policy and they closely monitor every transaction. Cryptocurrency has no central authority, therefore, it is quite impossible to track transaction and find out whether someone is money laundering or not. However, it laundered crypto has to be converted into cash, banks might catch you.

 

[Mika]

One of the major issues with crypto currency payment is also related to money laundering. Governments are suspicious that people will use crypto currency to launder money. Well, this cannot be denied as crypto currency transctions are annonymous and all transactions can be kept completely private. This is something that needs to be addressed.

 

[Good-Guy]

@Mika
No, Payza was subsidiary of UK based company MH Pillars Ltd, this company was owned by Firoz Patel and Ferhan Patel, they were not Bangladeshi, they were Indo-Canadians, they come from a Hindu family which later converted to Islam and settled in Canada. They pleaded guilty for making illegal money laundering via Ponzi Schemes, and escaped other charges.​

Payza (also known as Alertpay) would have been a great company if its bosses were not involved in such kind of illegal activities. I remember Alertpay being one of the most popular online banks and it was the first choice of many Paid To Click (PTC) sites during the mid 2000s. As far as I know Payza was put on a three year probation by the U.S government. It's probation will end this year or in the year 2022. No one knows if payza will rise again or not.

 

[Yugocean]

@Mika
No, Payza was subsidiary of UK based company MH Pillars Ltd, this company was owned by Firoz Patel and Ferhan Patel, they were not Bangladeshi, they were Indo-Canadians, they come from a Hindu family which later converted to Islam and settled in Canada. They pleaded guilty for making illegal money laundering via Ponzi Schemes, and escaped other charges.​

 

[Mika]

When you gave the example of Payza, this has to be cleared differently, Payza was started by two Indians after Acquiring AlertPay. However they kept working with their Payment processor in Pakistan, but never provided any service in India, even through India remained available for online use without bank verification. Interestingly Payza started accepting Bitcoin when PayPal opposed it, later they were found guilty of Money laundering.

I think Payza was started by two Bangladeshi brothers. They were working just like Paypal (you could dispute a transaction) with added features like bitcoin funding. They accepted the countries that were not included in PayPal-supported countries. The only reason that I can think of failure is that the brothers became greedy and started doing illegal business.

 

[Yugocean]

When you gave the example of Payza, this has to be cleared differently, Payza was started by two Indians after Acquiring AlertPay. However they kept working with their Payment processor in Pakistan, but never provided any service in India, even through India remained available for online use without bank verification. Interestingly Payza started accepting Bitcoin when PayPal opposed it, later they were found guilty of Money laundering.

 

[Alexandoy]

I don't know the details of the digital wallet because I have not been using it. With Paypal a verified member had shown his real identity and supported by a credit card - in my case, at least. When I do money laundering with my Paypal account then it is easy to track me down with my real identification. With crypto wallet I don't think it is the same.

 

[sincerem]

I would always prefer a payment gateway that would not require me to go through KYC(Know Your Customer) process in order to verify my identity. Currently, I am using such payment processors that do not ask for documents. I am not a bad guy or a person who is involved in llegal activities and I still do not want to send my documents to a company even though I am not involved in any such kind of criminal activities. This is because I prefer anonymity.

I see, you prefer security over exposure. When it comes to online, no one loves to see his or her personal details leaking, that's why people fear for KYC. And again, the KYC registration for sites whose profile isn't recognized is very risk, cos they can use such details to perform phishing, and sending us unsolicited email messages. But with legit and regulated exchanger/wallets you shouldn't beafraid to give out your details cos they'll secure it for you.

 

[Good-Guy]

You spoke admirably well dear. We shouldn't point accusations to payment processors when they aren't the ones who performed such kind of illegal transaction within their payment system. At times fraudsters targets them, just to paint them black,and tag them fraudulent. We'll only accuse them when they're the ones that performed the illegal operations just as you said concerning liberty reserve.

I would always prefer a payment gateway that would not require me to go through KYC(Know Your Customer) process in order to verify my identity. Currently, I am using such payment processors that do not ask for documents. I am not a bad guy or a person who is involved in llegal activities and I still do not want to send my documents to a company even though I am not involved in any such kind of criminal activities. This is because I prefer anonymity.

 

[Mika]

One of the primary reasons why government around the world are suspicious of bitcoin and crypto currencies is the issue of money laundering. Not only the countries where crypto currencies are banned, even in the countries where they are legal, governments are still suspicious. Since you cannot track the crypto currency transaction people, money laundering becomes easy.

As far as money laundering is considered, are crypto currencies only to be blamed? What about payment gateways like PayPal, Payeer, Perfect Money, etc.? Don’t you think these sites are also used for money laundering?

I am asking this question because once there was a payment solution called Payza, which was shut down for the issue of money laundering. The owners are still facing the lawsuit.

Payza operated just like PayPal and was available in the countries where Paypal was not available, for example, Pakistan, Bangladesh, etc. You could even fund your account with bitcoin.

Has anyone heard of Payza?

 

[Good-Guy]

Hmm, their is no payment gateway that is an exemption when it comes to money laundering scandal. All payment gateway are victim to that, even PayPal have experienced that before introducing charge back. It doesn't mean that, money laundering makes a payment gateway scam, rather individuals who are fraudulent uses their payment gateway unknowingly to steal funds and passed it through their payment gateway and to another trying to hide their activities of sending out funds.

I basically agree with you. It would be unfair to say that payment processors are the main reason why money laundering occurs. Just because a person or a group of people use payment processors in a negative way, that does not mean that we should blame the payment processors for that. The problem starts when the creator of payment processors themselves get involved in such illegal activities and this was what led to the shut down of Liberty Reserve.

 

[sincerem]

@Dear @sincerem , do you really think that payment processors like Perfect Money and Payeer is being used for money laundering right now? If they were indeed being used for money laundering, then they would have been shut down by now by the governments. Perfect Money is in operation since 2007 and no government ever raised any objection against it, so what is the reason behind it? Does this prove that Perfect Money and Payeer are not being used for money laundering?

Hmm, their is no payment gateway that is an exemption when it comes to money laundering scandal. All payment gateway are victim to that, even PayPal have experienced that before introducing charge back. It doesn't mean that, money laundering makes a payment gateway scam, rather individuals who are fraudulent uses their payment gateway unknowingly to steal funds and passed it through their payment gateway and to another trying to hide their activities of sending out funds.

 

[Good-Guy]

Their is no payment gateway or banking institution where money laundering isn't operating. We are living in the world humans can do lots of funny things to get away with other peoples funds in a fraudulent manner. Funds embezzlement can't be erased as long as the world keeps on driving with fraudulent people living with us.

@Dear @sincerem , do you really think that payment processors like Perfect Money and Payeer is being used for money laundering right now? If they were indeed being used for money laundering, then they would have been shut down by now by the governments. Perfect Money is in operation since 2007 and no government ever raised any objection against it, so what is the reason behind it? Does this prove that Perfect Money and Payeer are not being used for money laundering?

 

[sincerem]

Their is no payment gateway or banking institution where money laundering isn't operating. We are living in the world humans can do lots of funny things to get away with other peoples funds in a fraudulent manner. Funds embezzlement can't be erased as long as the world keeps on driving with fraudulent people living with us.

 

[Good-Guy]

it is very hypocritical for government to bank cryptocurrency because they think it will be used for money laundering. Money laundering has been into existence for ages and there was nothing like cryptocurrency then . The government should concentrate more on fighting corruption rather than banning cryptocurrency.

I think that they believe that money laundering did exist even before cryptocurrencies existed but they think that cryptocurrencies make money laundering more easy and this is why governments dislike crypto. I am really not sure if crypto transactions can be regulated or traced just like Paypal, but one thing I do know is that cryptocurrency use is a big headache for governments and this is why they forbid the use of crypto.

 

[Chibson]

In my home country, cryptocurrency was banned because the government suspect that insurgents receive funding from foreign sponsors via bitcoin. Also the corrupt politicians use the bitcoin to steal public funds with no traces. Honestly, i don’t know about the payment gateways but i feel these payment solutions should be traceable.

it is very hypocritical for government to bank cryptocurrency because they think it will be used for money laundering. Money laundering has been into existence for ages and there was nothing like cryptocurrency then . The government should concentrate more on fighting corruption rather than banning cryptocurrency.

 

[Good-Guy]

I remember payza as being a popular payment processor and it was certainly used for money laundering and this is why it got shutdown by governments. In fact, there also used to be a payment processor called Liberty Reserve that was also used for money laundering. I think whenever any such payment processor is found to be involved in such kind of activities , they get shutdown. On the other hand, there is no evidence that proves that the payment gateways you mentioned are involved in such kind of illegal activities, so this is why they are still active.

 

[Lens1000]

In my home country, cryptocurrency was banned because the government suspect that insurgents receive funding from foreign sponsors via bitcoin. Also the corrupt politicians use the bitcoin to steal public funds with no traces. Honestly, i don’t know about the payment gateways but i feel these payment solutions should be traceable.