In this episode of Complex System, the tables are turned and media entrepreneur/investor 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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Full transcript available here: https://www.complexsystemspodcast.com/true-crime-banking-edition
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Links:
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/
Turpentine Media: www.turpentine.co
Turpentine network for Tech Founders & Execs: www.turpentinenetwork.co
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Twitter:
@patio11
@eriktorenberg
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Timestamps:
(00:00) Intro
(00:33) Seeing like big tech
(06:31) AI, centralization, and information processing
(09:23) Crypto vs AI: Thiel's perspective
(10:30) Seeing like a bank: ledgers and customer service
(19:57) Future of banking customer service
(22:27) Societal goals vs banking efficiency
(28:58) Sponsors: WorkOS | Check
(31:15) Understanding KYC and AML
(35:16) Money laundering explained
(42:28) Financial system as law enforcement
(51:41) Ideal changes in the financial system
(52:34) Wrap
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Complex Systems is part of the Turpentine podcast network.
