Well, there's OFAC, for one. In the U.S. alphabet soup, that's the Office of Foreign Asset Control, and they maintain the master sanctions list operated by the Federal government. This is a list, that as a matter of law, must be checked against every transaction. If there is a match on the receiving end of funds to a sanctioned individual, the transaction is immediately halted. If a sanctioned party is the originator, a flag may be raised for the institution to deal with otherwise. You do not want to end up on that list, because if you do, the U.S. financial system turns into a roach motel. Assets flow into the custodianship of the service provider, but are unable to move out. A very highly controversial feature to have implemented if I dare say so myself. Then there are the SAR's and CTR's, which are reports that must be filed by banks in the event of "suspicious activity". I.e. structuring, withdrawal of large amounts of cash, etc. They are specifically prohibited from informing you as a customer about these processes.
Then there's the risk department integration. It is mandatory to hand over transaction information on request by law enforcement. The process is mandatory, and continued licensure is conditional on maintaining a program through which financial surveillance can be conducted by the State.
Now, are these features inherently bad? No. Not at first blush. Do they have the potential to become horrifying? Well... Look at what happened to the ICC judge who got added to the sanctioned entities list. It doesn't just effect bank accounts. It involves anything that you engage in a digital transaction to maintain access to. That means entire sectors suddenly go from situation normal, to persona non grata, your business is not welcome here, at threat of massive fines for doing business with a sanctioned entity.
I went into finance looking for a boring, uncontroversial line of work, and came out after a few years realizing the entire sector is so damn wired for power projection it's not even funny. Once you see it and understand how the bounds of what you can do are constrained by these people who are authorized to digitally transact on your behalf... Well... It can't really be unseen.
Thanks. As someone who has lived in 3 countries (2 as an adult) and is considering leaving the US again.. Any hints on how NOT to end up on that list? I.e. avoid large transfers? What's the best way to transfer some $$ out of the US? I have no red flags in my background other than some speeding tickets 10+ years ago and have dual citizenship.
How far does this extend? I read the ICC judge had her credit cards canceled - which would be bad, but, has she been prevented from just going to her bank / withdrawing funds / writing a cheque to pay for her bills? Which western countries are more / less integrated into this?
Don't want to end up on the Sanctioned Entity List? Avoid anything that might make you controversial to a Federal Bureaucrat, and never do business with or on behalf of anyone already on the list. That's pretty much the only criteria to get on it. It's considered to be under the auspices of "Foreign Policy" so is under the sole discretion of the Federal Executive.
A few years ago, I'd tell you if it's a NATO ally, odds are at some point they are wired into OFAC. The choice is, do business with the American financial system, or get added to the sanctioned. There's a reason why I said the American Financial system is wired for soft power projection. We were big and trustworthy enough where just going along with it to maintain access to things made the act of checking a list that thusfar, no one had too many objections to the people who ended up getting added to it was just a no brainer.
Then... an ICC judge got sanctioned, finally making apparent how the U.S. really intended the mechanism to be used; as an "our way, or the highway" sort of thing. So I'm far from able to make any informed guesses on who is still honoring the commitment or not. The Cheeto-in-Chief has done a marvelous job at encouraging everyone to reassess the longevity or reliability of Pax Americana, sooo...
As for how to move assets out? If you aren't on the list, just move em somewhere else. Just not to anywhere on the list. If you are on the list, kiss your assets custodially held goodbye til the ole' U.S. of A decides to take you off the list, which at a minimum is probably going to require some very uncomfortable chats with people you don't want to be alone with.
Again, there is a reason I left. There is a reason I have no desire to return, and why I've basically opted to live life extra hard mode, because I can't just accept that it's okay for the Government to orchestrate financial lockout; and even less reason why we should all be gungho to implement systems like that. Canada has one, I'm pretty sure Great Britain and most of Europe each probably maintain their own as well. You'd have to check. I understand why a country would seek to have one, and operate one. I just can't consciably be involved in it. The abuse potential of the capability is too damn high. "Good guys in office who wouldn't be stupid enough to abuse such a thing" cannot be said to be a given. I wasn't comfortable with the Orange Man sitting on the nuclear football, nor am I comfortable with him on OFAC or anything else his position now entitles him too.
If I sound like a paranoid nutter, I sympathize, sounds pretty fantastic right? I once thought the same thing about a guy who used to work for the Postal Service who tried to tell me that "Oh, hell no, USPS will absolutely open main in transit for a myriad of reasons. At the time, I took it with a grain of salt. Now... I realize he was absolutely telling the truth. If it's a network, we (the U.S.) will do everything in our power to maintain the ability to tap, manipulate, and control it. I just want help machines move bits from A to B man. Not be a cog in sovereign theft/freezing of assets of the politically/diplomatically inconvenient/disfavored. Violates the Moral Imperative.
