Sf looks into forming its own bank - san francisco chronicle money laundering software

Sf looks into forming its own bank – san francisco chronicle money laundering software

Another potential benefit: it would give san francisco more control over how its money is spent — an issue in a city that regularly tries to divest from banks, companies, states and countries viewed as unaligned with its progressive values.

In recent years, supervisors have called for divesting from banks that helped finance the dakota access pipeline; wells fargo bank, because it opened 2.1 million unauthorized accounts; and companies producing fossil fuels, firearms and ammunition.

Most banks are incorporated with the federal government as a standard corporation, or C corporation, meaning their primary fiduciary responsibility is to maximize shareholder value. If san francisco were to open a public bank, it could incorporate as a benefit corporation, or B corporation, meaning it could prioritize other goals.

Cohen said she hoped a city-owned bank could help undocumented immigrants, who are largely left out of the banking system because of federal laws aimed at preventing money laundering.Money laundering software those laws mean bank customers must produce a driver’s license or other legal form of identification. As a result, unauthorized immigrants rely on check-cashing services, which charge high fees.

Joseph lynyak III, an expert on regulatory reform who advises banks and financial institutions, said a public bank would run into the same problems of needing to check customer identification. Still, he said, he thought work-arounds could be found. “theoretically you could do it,” he said.

Lynyak was less optimistic that a city-owned bank could open accounts for cannabis dispensaries, because marijuana is illegal under federal law. The federal government could charge the bank with “aiding and abetting violation of federal drug laws and also engaging in money laundering,” he said.

But fiona ma, a member of the california board of equalization, said she believed a public bank could do business with dispensaries in limited circumstances.Money laundering software she said dispensaries might be able to hold their money in a city-owned bank, take out cash only in san francisco and use it to pay local taxes. Still, she acknowledged, there would be some risk.

“the question always is, can the federal government come and take the money if it’s not used for taxes and it’s just sitting there in an account?” ma said.

Fow now, there are more questions than answers. Among the questions cohen wants the task force to look into: how much initial capital the city would need to open the bank and where that money would come from, operating costs, scope of operations, how it would be insured, potential revenue streams and risks.

City treasurer jose cisneros said he would consider the idea, but didn’t exactly endorse the concept.

“the treasurer takes his fiduciary responsibility seriously,” his spokesman, amanda fried, said in a statement.Money laundering software “the voters have elected him four times to keep the city’s money safe. He is reviewing this resolution carefully, and looks forward to working with the board of supervisors to better understand their policy goals regarding the creation of a municipal bank.”

Cohen said opening a bank would be tough, but thought it could be done.

“I think it’s realistic. It will be incredibly difficult, though.”

One thing’s for sure: it wouldn’t be called the bank of san francisco — there’s already a private bank with that name.

Another potential benefit: it would give san francisco more control over how its money is spent — an issue in a city that regularly tries to divest from banks, companies, states and countries viewed as unaligned with its progressive values.

In recent years, supervisors have called for divesting from banks that helped finance the dakota access pipeline; wells fargo bank, because it opened 2.1 million unauthorized accounts; and companies producing fossil fuels, firearms and ammunition.Money laundering software

Most banks are incorporated with the federal government as a standard corporation, or C corporation, meaning their primary fiduciary responsibility is to maximize shareholder value. If san francisco were to open a public bank, it could incorporate as a benefit corporation, or B corporation, meaning it could prioritize other goals.

Cohen said she hoped a city-owned bank could help undocumented immigrants, who are largely left out of the banking system because of federal laws aimed at preventing money laundering. Those laws mean bank customers must produce a driver’s license or other legal form of identification. As a result, unauthorized immigrants rely on check-cashing services, which charge high fees.

Joseph lynyak III, an expert on regulatory reform who advises banks and financial institutions, said a public bank would run into the same problems of needing to check customer identification.Money laundering software still, he said, he thought work-arounds could be found. “theoretically you could do it,” he said.

Lynyak was less optimistic that a city-owned bank could open accounts for cannabis dispensaries, because marijuana is illegal under federal law. The federal government could charge the bank with “aiding and abetting violation of federal drug laws and also engaging in money laundering,” he said.

But fiona ma, a member of the california board of equalization, said she believed a public bank could do business with dispensaries in limited circumstances. She said dispensaries might be able to hold their money in a city-owned bank, take out cash only in san francisco and use it to pay local taxes. Still, she acknowledged, there would be some risk.

“the question always is, can the federal government come and take the money if it’s not used for taxes and it’s just sitting there in an account?” ma said.Money laundering software

Fow now, there are more questions than answers. Among the questions cohen wants the task force to look into: how much initial capital the city would need to open the bank and where that money would come from, operating costs, scope of operations, how it would be insured, potential revenue streams and risks.

City treasurer jose cisneros said he would consider the idea, but didn’t exactly endorse the concept.

“the treasurer takes his fiduciary responsibility seriously,” his spokesman, amanda fried, said in a statement. “the voters have elected him four times to keep the city’s money safe. He is reviewing this resolution carefully, and looks forward to working with the board of supervisors to better understand their policy goals regarding the creation of a municipal bank.”

Cohen said opening a bank would be tough, but thought it could be done.

“I think it’s realistic.Money laundering software it will be incredibly difficult, though.”

One thing’s for sure: it wouldn’t be called the bank of san francisco — there’s already a private bank with that name.