My last article concerning the new legislation from the United States’ finCEN law on Money Service Businesses created a tsunami among the whole HYIP community. Just look in forums! It really came out from nowhere. Taking all this into consideration, should you empty all your AlertPay and Liberty Reserve accounts? Is there money laundering in the industry? If you want to save time, you should definitively take five minutes to read this summary I prepared for you. Enjoy your subscription to my blog, it’s free!
I worked several hours to read tons of documents , to contact the main parties, businesses and information sources. Guess what? I’m not done yet. You’ll get an updated article next week with official replies from finCEN, Liberty Reserve, AlertPay and some of the biggest e-currency exchangers.
First, we’re not talking about the HYIP industry here, even if it’s directly related. Of course HYIPs /Ponzi scams are illegal, that’s not new. People chose to risk their money in HYIPs on their own will. I hope my blog is opening your eyes on so many lies.
So what’s really going on ?As of today March 31st 2012, all Money Service Businesses ( MSB ) operating in the United States but not registered with the Financial Crime Enforcement Network ( FinCEN ) will not be allowed to service US residents ( citizen or not ). Their business will become illegal in the eyes of the government. This new legislation also applies to foreign businesses , not located in the US but doing business in the US.
Keep your calm, there’s no need to panic. Personally, this information is arising some healthy concerns and questions for the future. What’s going to happen and how things will evolve? I’m curious but can’t predict the future 100% accurately. Right now, I really find important you know at least the most critical parts .
For example, if a US resident wants to buy / sell Liberty Reserve , his chosen e-currency exchanger will have to register its business with the FinCEN. More than that, the e-currency itself should be registered too. According to various sources and to some of my own investigation, the very popular AlertPay, Liberty Reserve, Perfect Money , etc never even considered to comply with the US FinCEN. Still waiting for confirmations…
LR chat never heard about FinCEN and so now I’m trying to reach the administration. AlertPay still haven’t replied to my e-mail . Today, I sent a mail to a FinCEN official who I was confirmed answers public questions. So nect week we’ll confirm if AlertPay and LR are registered or not. Do you have any hope?
- Exchangers
When it comes to e-currency exchangers processing transactions in the US, they’ll need to become a registered MSB or stop their US activity in the US. You can confirm that swapgold.com denies any US transactions since March 19th. I was told that the popular webmoney.com is blocking american customers from accessing their website ( please confirm that they are blocking IP addresses from the USA ). Goldmoney.com also took some actions. You see that this new legislation affects a lot more industries than just the online HYIP market.The precious metal industry is widely affected.
Several MSBs will simply leave their US customers alone. Thousands of MSBs don’t want to comply. But what’s an MSB according to the FinCEN ? See this link , paragraphs (ff) (1) to(ff)(7) http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=d5570d7646c5fc13fe1fa42a61d1dcf1&rgn=div5&view=text&node=31:3.1.6.1.2&idno=31#31:3.1.6.1.2.1.3.1
Money services business. A person wherever located doing business , whether or not on a regular basis or as an organized or licensed business concern, wholly or in substantial part within the United States, in one or more of the capacities listed in paragraphs (ff)(1) through (ff)(7) of this section. This includes but is not limited to maintenance of any agent, agency, branch, or office within the United States .
In other words, AlertPay , Liberty Reserve and your favorite e-currency exchanger are all MSBs . Like you can imagine, it’s unlikely they are not registered with FinCEN today and so, are acting against the US law.
It’s not a big deal if you live anywhere else on the planet, provided the MSB processing your transactions is not US based and that can stay in business without the US market. Like you can imagine, all these losses in US customers will result in big losses in revenues for your e-currency exchanger. But will US residents have the intention to stop buying/ selling Liberty Reserve and AlertPay? You tell me! By the way, I could be wrong, but you shouldn’t be worried by charges against you as an individual buying /selling e-currencies . Exchangers and e-currency themselves are the target.
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- Civil and criminal penalties
The government takes money laundering and illegal money activities seriously. The USA apparently wants to kill the big players : the digital currency providers and exchangers, like said earlier. These just can’t or don’t want to handle the paper-work. Again, I might be wrong but it’s going to take a lot of time before the FinCEN can prosecute all the e-currency exchangers who will continue to serve US residents with Liberty Reserve, for example.
In short, people will just continue to buy/sell their favorite e-currencies as long as the USA won’t put actions on their words and file lawsuits against the offenders. Or maybe the illegal MSBs ( from the US FinCEN perspective ) will get out from the United States by themselves? Let’s keep in touch and see what happens…
Stay tuned for my next article where you’ll be able to ask your questions to Uinvest. And next week for my FinCEN update. By the way I now have 2240$ working for me at Uinvest ; I bought 4 chemical plant shares today.
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Sources supporting the information in the above article:
- Official webinar that might interest you .
http://treas.yorkcast.com/webcast/Viewer/?peid=dc6ae9061c3a41e6abcd7c0a75c10a171d
- Announcement :
http://www.fincen.gov/news_room/nr/html/20110715.html
- Detailed definitions , scroll down to section ( ff ) :
http://www.gpo.gov/fdsys/pkg/FR-2011-07-21/pdf/2011-18309.pdf
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In Brazil we have the rejection of the USA, imperialist and terrorist, they should look at the war crimes and tortures committed in poor countries
Is the United States of America becoming a communist state. I think so. What is happening to the idea of a free economy and the liberty to choose. The freedom of of choice and association. The world looks at the United States of America and stands in awe of their achievements as they didn’t give up on “The American Dream” at all costs. Trillions of Dollars are traded on the Internet every day! One the main beneficiaries of this is the USA economy. Have these folk really thought this through, as to the ramifications to the USA economy and the economies of the world including emerging markets. If they want to remain the most powerful economy in the world and not hand this power over to the Chinese Communists on a silver platter, they should really reconsider their proposed restrictive legislation against e-currencies. Every dollar that the US citizen could possibly lose in e-currencies will never be again spent at your local Wal-Mart or McDonalds outlet or any other business for that matter. This could effectively bankrupt the USA once and for all and further ruin the world economy. There is a saying that if the USA sneezes, all countries catch a cold. Is this what you US Marines paid with their lives for? To throw it all away for some communistic ideals, where the state is in total control. Stand up and be counted to fight for your freedom and the freedom of your neighbours! From South Africa!
I would have said the same.You are right.Sometimes, we , as american, as so dumpt that we will only realize that after the disater is made.
This is probably another USELESS attempt but XCHANGER.ORG is not processing my exchange from AP to LR and I’m wondering if the FinCen law has anything to do with this. I submitted numerous support tickets but no reply. NOT RECOMMENDING YOU EXCHANGE WITH THEM!
Reality check: The American dream is dead. More 99%ers than ever and the ones with all the money and power could care less. More and more people out of work because of downsizing and US jobs being sent to other countries, making more and more people dependent on government assistance such as food stamps, health care and cash. The American out of work (such as me)couldn’t get ahead if we wished to. Finding ways to make a little money such as HYIPS, cyclers and other programs has actually helped some of us pay a bill or two.
But not anymore especially if e-currency businesses stop catering to United States citizens…
Don’t be fooled. This has nothing to do with activities of money laundering or terrorist organizations. This has everything to do with Uncle Sam not getting his fair share of our profits, so the government shuts it down. The US government is much like a macho, bullying mafia head man. He wants his fair share of the profits right from the top of the pile, we get what is left.
At this point in time America should never be the example to follow for other countries. America has molested everything good, dumping the very God that has made her strong and throwing away the morals that have made her shine. The good have been shut out and the evil voices keep getting louder. Where $$$ is king and only a few have it, where the US government keeps tightening down on its citizens…rights being taken away slowly but surely.
And this is the example to live by? I am an American and I still love my country. I just wish that we could start over again and live by the virtuous ideals that were presented to us when we were a young nation. We have fallen far from the tree of life and if we don’t turn back soon it will be hell on earth for a lot of us.
Resist the US at all costs.
Hello John:
Man, do I ever know what you’re talking about! If the US does not quit with all this soon, we will all be in dire straits. I think that includes the rest of the countries as well because when we do bad, it all trickles down to them.
The United States government has become one business in itself and its corrupt as hell. I agree with your post and hope that we can turn things around but it is looking doubtful.
Derek
Hello People i want to setup an exchanger site,my concern now is the script, so can somebody sell me website script like xchanger.org or moneycentremarket.com i will appreciate it, Hello frank i want you to help me raise this as a topic in order for me to archieve this, Thanks.
hi! pls assist.. i am struggling to exchange my south african currency which is Rands to us$.. how do i go about,?
You’re bank will exchange your Rands to USD. I don,t know south-african banks but it would be surprising if that they can’t work with USD. If you want to exchange your Rands for Liberty Reserve USD for example, you need to find a trusted exchanger who’ll accept to trade with your national currency. Contact the administration and ask them.
Hello i’m a nigeria contact me personally for that issues +2347064815776
Hi Frank, any news about the FinCEN? Still waiting for your update
No I haven’t yet. Maybe I should write the complete and official form to ask if AlertPay and Liberty Reserve are registered MSBs. I’ll be in touch when I get a reply!
Hi Collaro,
Please is there any head way about funding LR in US yet. kindly suggest alternative funding.
For now only your trusted friends can handle thing like that.
Hello,
Will Solid Trust Pay be affected by this too?
Kandee
man this sucks…guess its time to move to cananda….
I wonder if they will go after individuals
Hi the article that concerns me is the one where it is illegal to go with liberty reserve and so forth and make exchanges? I personally have not used liberty reserve I do have accounts on them but it basically is abandoned and it is hard to get rid of an account on there as you may have been aware. People don;t get in trouble for having an account on there right if in US from the past? And is the e-currency excahnger centregold allowed to fund liberty reserve for us customers etc. I have an account on there and was wondering? This info is all new to me i have not been doing hyips or what not in ages.
is there any exchanger out there that comply yet with fincen as of this date? I want to buy LR and im from US so i wonder if there’s any legal xchanger in the eyes of US government? ur reply is highly appreciated
is there any foreign ecurrency exchanger out there that is legal in the eyes of us government?