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Anti-Money-Laundering Software

Hoo boy. Here come the feds:

Pressured by anti-terror laws, banks will be spending billions of dollars over the next few years on software to counter money laundering. The software will automatically track suspicious financial transactions, but it will also monitor millions of innocuous ones, and may make it harder to cheat on your taxes.

For example, Tripathi said, the software will remember that a customer is a 30-year-old engineer who is paid on the fifth of every month.

"It will study the profiles of other engineers in the same age group and build a pattern based on common traits like, say, the monthly periodicity of salary," said Tripathi. "If another customer comes along, says he is an engineer and receives deposits every week, the software will raise what we call a red flag. He is suspect."

Note to self: Make a habit of random bank transactions. Vary the frequency, the amount, and the bank. Bonus points for cash-only deposits in sizes that aren't round numbers.

When they call you asking for an explanation, do these things:

  1. Boldly disbelieve their identification and insist on calling them back to protect myself from scams.
  2. Ask them to cite the law that requires me to cooperate.
  3. Politely explain that I was just seeing how long it would take for them to call.
  4. Quote Office Space on money laundering.


Incidentally, blogging will be light for approximately the next week. I'm buried in things to do.

Tiny Island