Quote from: jackdavis1983 on October 23, 2012, 10:35:12 PM

The AML/KYC is half American legal terminology. But lets deal with it anyway. those other Bitcoin services that used these terms as excuses to shutdown, were just that, excuses. notes from what my advisor said was that unless my business sold illegal materials direct or advertised it would exchange tainted drug money for clean freshly mined coins for a profit cuts, i am fine.

basically unless i deal direct with illegal products or knowingly accept funds direct from illegal activities then i would be monitored. he also mentioned that for instance if a drug dealer on the street done a drug deal in FIAT, walked into a store and bought a pack of cigarettes and beer using the drug money. would the store owner be arrested for laundering drug funds.

If all these legal scare stories from other companies running off with your funds were actually true, then bitinstant would have been up shit creek without a paddled months ago. I want to be like bitinstant. sailing the sunny sea's of profit, not pretending to be up shit creek without a paddle while running to a deserted island with a treasure chest of gold (pirate analogy Grin

)

I don't know whether you're being deliberately obtuse but AML/KYC is not "half American legal terminology". It's the legal terminology used by all FATF member nations - the UK is a FATF member.

Nor am I talking about businesses using legal scare stories to run off with people's money. I'm talking about them having cash flow problems when their banks freeze their accounts because the activity on those trips the banks AML flags. This has happened on multiple occasions to services which are still operating and it's catastrophic to any service which doesn't have sufficient reserves to cover any frozen funds.

Nothing you've posted makes me believe that you've consulted a lawyer who is familiar with financial services law. You say that you're modelling your service on BitInstant - which is actually licensed as a retailer of stored value and has spent hundreds of thousands of dollars on proper legal advice. Have you even read the AML issues which BitInstant had to consider?

https://docs.google.com/viewer?a=v&q=cache:RPpi7wWrta4J:https://www.bitinstant.com/static/aml.pdf+&hl=en&gl=au&pid=bl&srcid=ADGEESibwpiHk1UYElm5461VMZs4YeS1V22QZOSSXFXPVkxwDG_KxelFppTezRHp15Mr8K8iU5fqXqIr4sCY1-R8sUDreil7IZoMw8_a-H5LE30GQL9akw_0hv9D2h5eiKxileIvPT6_&sig=AHIEtbT0UBE-XA7MA94-GnWMg1CeYjtcwA

Again - your "advisor" needs to specifically address the issue of why you will not be regarded at law as offering a financial service or product, because financial service/product providers are generally regulated in FATF countries and are required by law to implement AML/CTF/KYC measures. You've made no convincing argument whatsoever that your service would not be subject to financial services regulation. Your bullshit about cigarettes and alcohol is just that - it's not remotely equivalent and it's not a comparison which anyone practising financial services law would have made.

Frankly, I don't believe that you have consulted a financial services lawyer. Your financial projections are also ridiculous. I'm not willing to call "scammer", but your lack of proper research and preparation marks are the hallmarks of the kind of incompetence which we've seen all too often before in the Bitcoin community. You're either lying or you're incompetent, and neither one makes you a good investment.

And for fuck's sake tighten up your listing rules BTCjam. You're going to get a reputation as a scammer haven sooner rather than later if people keep coming here to publicise dodgy listings on your service.