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This one is a mixed bag. KYC regulations are very useful in detecting and prosecuting money laundering and crimes like human trafficking. But ya, if this data needs to be kept, the regulations around secure storage need to be just as tight. This sort of thing should be required to be kept to cybersecurity standards like CMMC Level 3, audited by outside auditors and violations treated as company and executive disqualifying events (you ran a company so poorly you failed to secure data, you’re not allowed to run such a company for the next 10 years). The sort of negligence of leaving a database exposed to the web should already result in business crippling fines (think GDPR style fines listed in percentages of global annual revenue). A database which is exposed to the web and has default credentials or no access control at all should result in c-level exec seeing the inside of a jail cell. There is zero excuse for that happening in a company tasked with protecting data. And I refuse to believe it’s the result of whatever scape-goat techs they try to pin this on. This sort of failure always comes from the top. It’s caused by executives who want everything done fast and cheap and don’t care about it being done right.
I’m uninformed about this, but do KYC laws come into effect at some profit point or are they globally enforced. I don’t see how any small businesses could possibly afford a 3rd party audit, or how that would even scale. I agree it’s necessary, but logistically it seems problematic.
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Ah, makes sense it would be targeted twards banking and financial businesses specifically. Better pinch point than some random commerce. In that case audits would be less problematic, though I’m not sure why outsourcing this data is even an option with the current rules. It’s not like a business can be completely hands off in the acquisition or processing of that info.
Nothing evil in preventing funding of criminals. GTFO with this sensational subject line.
PS. To clarify, because there is some confusion, I’m referring to OP using post title starting with: ‘If you had any doubts that Know-Your-Customer laws were evil,’
Criminals and scammers are going to have a great day with the personal info of the 1 billion people now.
Criminals also have great time with knives, or rope, or crowbars. Not reason to say all those things are evil. Problems are companies who nickel-and-dime on security.
KYC laws resulted in the personal data of a billion people leaking. Criminals and scammers will use this data to cause much harm.
Yes, I can condemn supporters of KYC laws for their incompetence and stupidity. This was obviously going to happen at some point. If you stockpile data, it eventually leaks.
