Unraveling Money Laundering | 15min 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

Unraveling Money Laundering

This chapter explores the complex process of money laundering, detailing its three stages: placement, layering, and integration. It discusses the implications of anti-money laundering regulations on individuals and financial institutions, highlighting the challenges of compliance and the unintended consequences for entrepreneurship. Additionally, the chapter examines the role of regulatory bodies in processing suspicious activity reports and the impact of Know Your Customer protocols on the economy.

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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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🎙️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.

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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