Paypal and the PATRIOT ACT. Who's next? - GoFuckYourself.com

MrPopup · 03-31-2003, 02:45 PM

Motley Fool
PayPal and Patriot Act
Monday March 31, 1:31 pm ET
By Rex Moore

Online auctioneer eBay (Nasdaq: EBAY - News) revealed in its 10-K filing that it received a letter from the Missouri attorney general three days ago claiming its PayPal unit violated the USA Patriot Act. Say what?

Quick background: PayPal stopped processing payments for online gambling merchants last November, giving up business that accounted for 6% of its revenue in 2002. Prior to that, it settled with the New York attorney general for $200,000, presumably for facilitating some transactions involving illegal gambling.

Following custom, PayPal admitted no wrongdoing in that case; perhaps it was easier to settle in order to clear the way for the eBay buyout, and because eBay had made it clear PayPal would be exiting that line of business when the acquisition closed.

The Patriot Act was passed after 9/11 in order to help combat terrorism. Part of its online aspects prohibit transmission of funds that are known to have come from criminal activity. The Missouri attorney general's office apparently is pressing eBay with this provision of the Act, and offered a complete settlement. eBay is claiming no wrongdoing, and has not indicated it will settle. It is nearly impossible, after all, to completely sort legal and illegal transactions paid via PayPal.

While there's nothing wrong with prosecuting illegal transactions, too many legitimate, lawful gambling enterprises are being hurt by PayPal's exit and the decisions of banks, such as Citibank (NYSE: C - News), to block all online gambling transactions. Chalk this up as another case of politicians trying to save us from ourselves.

The pressure thus far from the two attorneys general is ridiculous. Worse, pressing the case under the guise of a law designed to prevent money laundering and financing for terrorists only gives fuel to critics of the Patriot Act, who say it undermines the Constitution.

As for eBay, it says its business could see some harm in a worst-case litigation scenario. However, it also says, "the monetary amounts associated with this matter are not expected to have a material impact on our financial position, results of operations or cash flows."

[Labret] · 03-31-2003, 02:46 PM

thats so fucked.

MrPopup · 03-31-2003, 02:47 PM

Quote:

Originally posted by [Labret]
thats so fucked.

And watch when the first paysites and affiliate programs go down....

This is not a sky is falling post but if the writing isnt on the wall with this one then....

iroc409 · 03-31-2003, 02:49 PM

all my crack buyers use paypal, it's so much easier.

03-31-2003, 02:45 PM	#1
MrPopup Confirmed User Join Date: Aug 2002 Location: on the internet Posts: 3,783	Paypal and the PATRIOT ACT. Whose next? Motley Fool PayPal and Patriot Act Monday March 31, 1:31 pm ET By Rex Moore Online auctioneer eBay (Nasdaq: EBAY - News) revealed in its 10-K filing that it received a letter from the Missouri attorney general three days ago claiming its PayPal unit violated the USA Patriot Act. Say what? Quick background: PayPal stopped processing payments for online gambling merchants last November, giving up business that accounted for 6% of its revenue in 2002. Prior to that, it settled with the New York attorney general for $200,000, presumably for facilitating some transactions involving illegal gambling. Following custom, PayPal admitted no wrongdoing in that case; perhaps it was easier to settle in order to clear the way for the eBay buyout, and because eBay had made it clear PayPal would be exiting that line of business when the acquisition closed. The Patriot Act was passed after 9/11 in order to help combat terrorism. Part of its online aspects prohibit transmission of funds that are known to have come from criminal activity. The Missouri attorney general's office apparently is pressing eBay with this provision of the Act, and offered a complete settlement. eBay is claiming no wrongdoing, and has not indicated it will settle. It is nearly impossible, after all, to completely sort legal and illegal transactions paid via PayPal. While there's nothing wrong with prosecuting illegal transactions, too many legitimate, lawful gambling enterprises are being hurt by PayPal's exit and the decisions of banks, such as Citibank (NYSE: C - News), to block all online gambling transactions. Chalk this up as another case of politicians trying to save us from ourselves. The pressure thus far from the two attorneys general is ridiculous. Worse, pressing the case under the guise of a law designed to prevent money laundering and financing for terrorists only gives fuel to critics of the Patriot Act, who say it undermines the Constitution. As for eBay, it says its business could see some harm in a worst-case litigation scenario. However, it also says, "the monetary amounts associated with this matter are not expected to have a material impact on our financial position, results of operations or cash flows." __________________ <table cellspacing="0" cellpadding="3" border="1" bgcolor="#008000"><tr><td><font size=3>Gone</font></td></tr></table> Last edited by MrPopup; 03-31-2003 at 03:00 PM..

03-31-2003, 02:49 PM	#4
iroc409 Confirmed User Join Date: Jan 2003 Location: midwest side, yo Posts: 4,728	all my crack buyers use paypal, it's so much easier. __________________ <a href="http://www.iroc409.com/"><img src="http://www.iroc409.com/adv/120x60.gif" border=0></a> icq: 1 7 6 4 2 0 9 6 0 Gallery templates for ONLY $25! w00t!

03-31-2003, 02:46 PM	#2
[Labret] Registered User Industry Role: Join Date: May 2001 Location: Са́нкт-Петербу́рг Posts: 10,945	thats so fucked.