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Can anyone explain how AML rules, alerting, and FinCEN reporting would work under Ripple?

makerofthings7
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  • I would suppose it would only apply to gateways, and then it would be pretty clear? – Murch Apr 10 '14 at 13:26
  • @Murch I thought Ripple has a transitive property that masks the original transmitter and receiver (the "ripple"). In that case I would think it would complicate AML work, no? – makerofthings7 Apr 10 '14 at 13:39
  • mh, attempting an answer. – Murch Apr 10 '14 at 13:59
  • this article touches on Ripple and KYC: [CoinDesk - Ripple Labs’ Grand Plan to Build a Global Payment Protocol](http://www.coindesk.com/ripple-labs-grand-plan-build-global-payment-protocol/) – Murch Apr 14 '14 at 00:41

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AML is only applied to customer relationships. In this case that would be people that have an account with a gateway and are using said account to either deposit or withdraw massive amounts of money/crypto from the gateway.

It cannot apply to rippled balances, as you don't need to provide any information to another entity in Ripple in order to extend a trust line to said entity. I.e. there is no customer relationship in that case.

All of the above is AFAIK and IANAL.

Murch
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