However they are NOT a bank, the BSA specifies that is a bank including a foreign bank. Being licensed by a foreign bank doesn't make one a bank. I would be more comfortable if they had any legal counsel with expertise in US KYC/AML willing to vouch for their claims.
When they can't even explain it properly it is worrisome. Like in the post above CFIG keeps trying to make the claim that because funds only go from one account to another one at the same bank it isn't money transmission. By that "logic" PayPal isn't a money transmitter either.
This isn't to say they aren't licensed and 100% legit in Panama but if you accept funds form US customers then you have to play by FinCEN (and the states) rules. They seem to think they don't.
Their executive summary states they are a Licensed Financial Services company that will be able to offer A Private Individual/Corporate International Bank account (quoted below).
"
By being a Licensed Financial Services company we will be able to offer our customers the following services:
1. A Private Individual/Corporate International Bank account2. Support for more than 20 different Fiat Currencies; USD, JPY, EUR etc.
3. The option for a Visa Debit Card with the ability to withdraw funds at any ATM worldwide
4. Several open Exchange platforms to convert Fiat Currency to Crypto Currency"
Since all funds flowing to and from their financial services company are through KYC/AML accounts then that should satisfy FinCEN. If a large amount is transferred then FinCEN will know who transferred it and who to come after. How are the 1% in America able to offshore 32 trillion dollars by placing it in international bank accounts? Obviously Americans must be allowed to have an international bank account.
@MonkeyBear68 - Are you, by any chance, looking for work? Judging by your post history, I feel I could utilize someone who doesn't ask questions and takes everything they read at face value. Or maybe you're from some utopia where trust is inherent, which in that case I offer you my condolences for joining Bitcoin
I tend to let others ask the questions and observe the answers. From the responses I do believe that Crypto Financial will set up a Financial Services company that will benefit the Bitcoin community. Compliance with FinCEN could present some hurdles, but there are 6.8 Billion people in the world that could potentially be served outside the US.
The guidance that FinCEN gave also suggested that miners be registered as MSB's, I do not think this has affected mining operations in the US or the value of mining shares much. There are several US government regulatory bodies that could pounce at any time using any number of laws; this has already happened a few times this year to a few companies including MtGox.
Crypto Financial has not made any outrageous claims such as 7% profit a week etc. They are open to new ideas and seem to genuinely want to provide good customer service. They state the regulatory environment is changing and that can affect their valuation among other things. The following is from their revised prospectus:
RISK FACTORS
You should carefully consider the following factors as well as other information contained in this prospectus before deciding to invest in shares of the virtual stock.
Our Operating Results May Fluctuate Significantly Due to Factors Which Are Not
Within Our Control
Not FDIC Insured No Bank Guarantee May Lose Value
Our quarterly operating results may fluctuate in the future based on a number of factors, many of which are not in our control. Crypto Currencies acceptance and rejection as a whole may affect our ability to offer our services. New regulations that are currently not part of the Crypto Currency realm may be signed into law. The value of Crypto Currencies has in the past and will in the future fluctuate significantly due to factors which are not within our control. Please understand those risk factors prior to purchasing any of our virtual shares.
They clearly explain there are many risk factors. I have dealt with Havelock Investments long enough to have trust in their assessment that this is not some sort of scheme. I have invested at my comfort level and encourage others to do the same.
