Navigating the Complexities of Banking and Criminal Activity | 4min snip from "Upstream" with Erik Torenberg

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E80: Financial Plumbing with Patrick McKenzie and Erik Torenberg

"Upstream" with Erik Torenberg

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CHAPTER

Navigating the Complexities of Banking and Criminal Activity

This chapter examines the nuanced relationship between banking systems and criminal activities, highlighting the unintentional role banks play in facilitating crime while serving legitimate purposes. It advocates for access to banking for lawful needs and stresses the importance of open dialogue about the balance between financial services and crime prevention.

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In this episode of Upstream, Erik Torenberg interviews Patrick McKenzie (patio11) about the intricacies of the financial system, focusing on banking, money laundering, and regulatory compliance. They discuss several of Patrick’s essays from Bits About Money.

Patrick discusses the three stages of money laundering - placement, layering, and integration - and how the financial system has been deputized to act as law enforcement. The conversation touches on the unintended consequences of strict regulations, including their impact on economic growth and financial inclusion.

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RECOMMENDED PODCASTS:

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🎙️Complex Systems with Patrick McKenzie

Patrick McKenzie (@patio11) talks to experts who understand the complicated but not unknowable systems we rely on. You might be surprised at how quickly Patrick and his guests can put you in the top 1% of understanding for stock trading, tech hiring, and more.

Spotify: https://open.spotify.com/show/3Mos4VE3figVXleHDqfXOH

Apple: https://podcasts.apple.com/us/podcast/complex-systems-with-patrick-mckenzie-patio11/id1753399812

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LINKS:

Patrick’s Newsletter: https://www.bitsaboutmoney.com/

Seeing Like a Bank: https://www.bitsaboutmoney.com/archive/seeing-like-a-bank/

KYC and AMI: https://www.bitsaboutmoney.com/archive/kyc-and-aml-beyond-the-acronyms/

Money Laundering and AML Compliance: https://www.bitsaboutmoney.com/archive/money-laundering-and-aml-compliance/

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FOLLOW ON X/TWITTER:

@eriktorenberg

@patio11