Patriot Act Allows Govt. to investigate money transactions

[Pisces]

I don't care what you think about Spitzer, but the fact that this started by large transactions raising a red flag. This is what led to the investigation. The implication of this is unbelievable. I do think he was targeted, however where does that leave our privacy? Are we now only to be a cash and carry society in order to have any privacy???? This is scary business as far as I am concerned. Hello Big Brother I know you are watching and I am giving you the finger.

[theboss]

1. The regs that nailed Spitzer pre-date the Patriot Act

By quite a long time actually.

It's a remnant of the Drug War, not the War on Terror.

[EFerrari]

3. I just heard an MSNBC talking head say that since 9/11, the amounts

that trip an inquiry have gotten smaller. He didn't cite a source.

[ScreamingMeemie]

5. I know what I did when I worked for a bank in the 90's and often we

reported smaller amounts, because of the frequency or similarity in the amounts.

[Nevilledog]

12. Got a question for you Mrs. Grumpy

I occasionally need to cash Money orders for clients in order to pay off fines or restitution for them. The amounts very from around $1,000 to maybe as high as $8,000. These monies are never deposited to my business account but the funds are turned over to the clerk of the court. Does this raise any red flags for a bank? This doesn't happen very often, maybe 4 or 5 times a year, and I've had my business account with this bank for years and years. Just wondering.

[ScreamingMeemie]

13. If it were me, behind the counter...no.

They know you, you've had an account there and that sounds plausible. And, it one had been filed, they know what you did with the money and it wasn't illegal.

[Nevilledog]

21. Guess I'm just getting paranoid...lol

I have several out of state clients paying large amounts of criminal restitution. Our clerk's office will only take cash, credit cards, or money orders. The clerk's office is notorious here for losing transactions, or at the very least taking a ton of time to post payments. My clients feel more comfortable sending me the money order and having me walk it over to the clerk and get a receipt for the payment right on the spot. I don't mind doing it and it makes them feel better.

[theboss]

7. That is probably true, mainly because everyone became more paranoid

The old game was to make several transactions of $9,999.99 and certain banks would turn a blind eye. That's basically no longer the case.

[elehhhhna]

24. which is why Bob Dole only took out 8K per week in cash from Riggs Bank.

EVERY WEEK! Eight thousand dollars. God knows where it came from. Google it. Truefact.

[ScreamingMeemie]

2. Bank Secrecy Act, in place long before the Patriot Act.

These types of reports were being filled out long before the current administration. In place since 1970, originally used to detect and prosecute money launderers.

[Tandalayo_Scheisskopf]

4. Cash and Carry Society?

You betcha. More and more are living like that every day.

Make no mistake about it: The government is intrusive and confiscatory in extremis. Such a way of living is the only defense that even approaches effectiveness.

Because, you see, the more people that live like that, the less chance they have of amassing real wealth. It is an intended effect. They map this stuff out pretty well.

[lonestarnot]

11. And the carried cash can be determined by a drive by with the proper survellience equipment that

counts cash on hand.

[soleft]

6. Someone told me that the investigation was tipped off by the banks

Were they tipped off by Spitzer's spending or by incoming funds to the Emp. club, tracing them back to Spitzer?

[theboss]

8. It seems like Spitzer made several suspcicious money transfers

He was moving large sums of money to sham companies. So they got a warrant for surveillance of the sham companies. And the case came back to Spitzer. He was a client of the escort service.

[ScreamingMeemie]

10. From what I read today he was transfering large sums of money to

one account QAT Consulting. This would be a huge tip off to a bank in my opinion. I think people need to realize that there are heavy fines and prison sentences for bankers who do not report these activities.


Edited: wrong name

[soleft]

19. So it started with Spitzer and the bank, not with the escort service.

[ScreamingMeemie]

20. It appears so, from an article I read in the Times this morning.

Several suspicious transactions of the Governor's were investigated by the Feds. Once they made the connection from QAT to the escort service, they bugged the escort service and were able to get Spitzer. I am outraged that he could be so stupid.

[soleft]

22. Me too.

[Burma Jones]

9. Spitzer violated the Mann Act, enacted in 1910 and the tax laws used to nail him

have been around nearly as long. He screwed up by using bank accounts to pay his prostitutes. Banks have been ratting out their customers for decades.

[ScreamingMeemie]

14. 38 years, or go to jail themselves.

They have to.

[Burma Jones]

17. I guess ratting out was the wrong choice of words......

My brother, a contractor, wanted to be paid in cash when he did my basement, tens of thousands of dollars. When I said I couldn't, he got a little annoyed.........

[TechBear_Seattle]

15. I work in finance. The laws in question have been in place since the late 80s

With regards to the reporting of large financial transactions, the Patriot (sic) Act only extended existing laws, and then by very little.

[ScreamingMeemie]

16. Since 1970 to be exact. It is the Bank Secrecy Act.

[TechBear_Seattle]

18. I sit corrected

The ones I was thinking of were put in place as a body of laws to track cocaine trafficking and related money laundering; I know those were expanded under the Patriot (sic) Act. As others have pointed out, a lot of banking laws have been in place for decades, some in response to the Great Crash, in response to other systemic problems. Of all the problems presented by the Patriot (sic) Act, the changes to the reporting requirements of financial institutions are trivial by comparison.

[sarcasmo]

23. Who ever tells you this is still the land of the free, is your enemy.