Time to Scrap AML/KYC Regulations in Finance

According to CoinDesk, Bruce Fenton, CEO of Chainstone Labs, argues that anti-money laundering (AML) and know-your-customer (KYC) regulations should be scrapped entirely. Fenton, who is also an adviser at Watchdog Capital and co-host of the Satoshi Roundtable community event, believes that the idea that politicians should know how citizens spend their money is deeply flawed. He recalls that only 30 years ago, when he started his career as a stockbroker/financial adviser, he did not need a client's date of birth or social security number to sell them stocks. However, the post 9-11 Patriot Act saw a radical increase in AML/KYC requirements, which Fenton believes have only gotten worse over time. Fenton questions the effectiveness of these regulations in stopping money laundering, human trafficking, or terrorism. He argues that the compliance burdens millions of firms and billions of people with paperwork and procedures that slow down commerce, while not effectively stopping major criminals. Instead, Fenton suggests that efforts should be made to go after the actual criminals rather than encumbering the entire world with an inefficient compliance regime. He believes that money must be able to flow and move, and people must be able to take risks and make investments as they choose, in order to maintain a solid economy and the jobs, growth, prosperity, and peace that come with it.