Re: US vs Overseas Banks

>>
>> Of course, this bank has been criticized for being somewhat lax on who
>> they give accounts to, but the point still stands.  I could have been
>> anybody, and give any false address.  *shrug*
>
>Why should they give a damn who you are?  IMO, it's none of their
>business.  Hell, they're making $$$ on *your* deposits, it's time they
>stopped being such shits about it.

Mostly they are afraid that you will get checks under a fake name, and
bounce a lot of them, which ends up costing them a lot of money, even
though they don't pay off on them. (Most of the  costs of any financial
transaction system come from handling exceptions). They are also
under obligation to provide accurate SSN or Business Tax-ID information
to the government on any interest-bearing account, so that you are
forced to declare it on your income taxes.

Clearly there are other ways of preventing or insuring against the
problems that arise from check fraud (such as not issuing checks),
but the IRS requirements are out of the bank's hands.

On Wed, 2 Aug 1995, Douglas Barnes wrote:

> Mostly they are afraid that you will get checks under a fake name, and
> bounce a lot of them, which ends up costing them a lot of money, even
> though they don't pay off on them. (Most of the  costs of any financial
> transaction system come from handling exceptions).

They really worry that you will divert real checks payable to the account 
name you are using, deposit them, collect the dough, and disappear.  They 
will then be on the hook because they paid on a false endorsement and the 
institution that deals with the false endorser gets stuck.

>They are also
> under obligation to provide accurate SSN or Business Tax-ID information
> to the government on any interest-bearing account, so that you are
> forced to declare it on your income taxes.

They are also under an obligation to obtain identity information from 
everyone who opens accounts (even non-interest-bearing).  Many Midwest 
banks still don't.  The rules don't specify exact ID requirements so 
there is some slop here.  They say you have to use the same ID 
requirements to open an account that you (the bank) would use to cash a 
check.
 
If you shop around, you can find friendly banks even today.

DCF

"'The Internet made me do it' -- Janet on how a call to arms on the nets 
caused her to send in the tanks."