For point 2 - We only report customers to the police relevant financial regulator when we have actual proof that they are actively involved in severe financial crimes such as money laundering or terrorist financing as we are legally obliged to do so. With regards to your particular case, I'll have to ask MagicalTux and get back to you. Would you prefer a public answer or for me to PM you?
I'm sorry to bring this up again, but I'm still unclear about your policy here. If emphasis is indeed your policy, why did you report Goat to the police? Did you have proof of him being involved in severe financial crimes or not?