Silk Road forums

Discussion => Security => Topic started by: ehwof on April 20, 2012, 05:06 pm

Title: FinCEN's March 31, 2012 Bank Secrecy Act Rules and Sellers of Stored Value Cards
Post by: ehwof on April 20, 2012, 05:06 pm
Since Silk Road Marketplace competes with Internet Online Pharmacies, I wanted to pass this information along. As you probably already know, many IOPs have had their databases compromised, or worse yet, seized by the government, easily making purchasing records and credit card numbers public.

Many people attempt to conceal their identity on these IOP sites by using stored value cards (e.g. prepaid gift cards), so they can use a secure shipping address. These cards don't have their actual name on it and do not need to follow the requirements for providing their social security number and identifying information to a bank like a real credit/debit card, so the charges can't be easily traced back to them.

Well, this has all changed! And I think we'll be seeing a lot more business on Silk Road as a result.

On July 26, 2011, the Financial Crimes Enforcement Network (FinCEN) issued a rule amending the Bank Secrecy Act regulations as they applied to a money services business (MSB) with respect to stored value or prepaid access cards.  The new prepaid access rule was issued under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act), which directed FinCEN to issue new rules regarding the issuance, sale, redemption, or international transport of stored value (including stored value cards).

Late last year, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced an extension for the compliance date deadline for most aspects of FinCEN’s final rule on prepaid access, which was published on July 29, 2011. FinCEN’s final rule was originally set to go into effect on September 27, 2011.  The extension notice provided that sections of the final rule, which are applicable to sellers of prepaid access, would become effective March 31, 2012.

As a result, as of March 31, 2012, it is no longer possible to use a prepaid access card (this is the new terminology) for international purchases. So, people that use IOPs have to use their own actual credit cards, which not only will likely be compromised with illegitimate charges, but will also be subject to government intrusion.
Title: Re: FinCEN's March 31, 2012 Bank Secrecy Act Rules and Sellers of Stored Value Cards
Post by: lilith2u on April 20, 2012, 08:13 pm
Great post!.........Thanks
Title: Re: FinCEN's March 31, 2012 Bank Secrecy Act Rules and Sellers of Stored Value Cards
Post by: mdmamail on April 21, 2012, 08:54 am
Rest of the world doesn't care about US FinCEN rules and you will still be able to buy anonymous VCC's with bitcoins. Just stops people walking into 7-11 and buying a stored value card without showing ID. Bullshit regulations. Expect a crackdown on reloadable offshore cards as well, judging by all the recent media hype on Colombian cartels with 500+ cards cashing out @ Medellin ATMs.