Why Did e-gold Close All Those Iranian Accounts? Well…
(DigitalMoneyWorld.com)The FinCen items below are certainly not the first appearance of laws, regulations or articles detailing some scary Iranian financial dealings around the globe. Especially lately, there have been many items in the press and remarks by various governments detailing how funding for terrorists and various dirty money deals have originated in Tehran.
Back in December of 2006 I wrote a post about how the e-gold digital currency had closed out all the Iranian held accounts. That was almost a year ago! There was no public announcement from e-gold, the accounts just sort of disappeared.
At that time there were volumes of protests from the local Iranian e-gold users. That was almost one year ago, it was on November 24, these users all claimed that e-gold Ltd. closed their accounts and ‘absorbed’ their deposits. At that time, even some other more well known DGC players stepped in and added their two cents about how it was a travesty of justice for a global payments company to selfishly block this one country.
Many users tried to make e-gold the ‘bad guy’.
Lots of them even signed a petition and claimed it was headed for the US Treasury Department in protest.
Dear Sirs
Gold & Silver Reserve (G&SR), Inc has suspended all of Iranian accounts on 24 November 2006 without any notification. we are a group of Iranian people who are working in international markets by e-gold accounts due to lack of reliable Internet banking and high jobless in Iran. we wonder why (G&SR), Inc as a US company is fighting with Iranian people as our government is doing the same ! the tele communication company of Iran who has all the the power of Internet policies in Iran and is a governmental company blocked access to e-gold website about 1 year ago , to cut Iranian communications and businesses with the world, and now (G&SR), Inc is helping them to keep Iranian people isolated from the world. it seems we should tell to our government that they have some partners in US ! we think it is against the announced US policies , blocking the money of Iranian individuals and not to let them work and communicate with the world doesn’t help to expand democracy in Iran and gives Iran government the opportunity to advertise its anti-US policies. we think if US wants to stay popular in Iran should not fight with Iranian people instead of Iran government , blocking the money of Iranian youths doesn’t give them a good feeling about US ! I can say 95% of these account belongs to youths below 25 years old. if you want to do something useful , block the terrorism funds and budget. blocking the accounts of some normal people trying to work and live in this country will not help you.WE ASK FOR IMMEDIATE ACTIVATION OF OUR ACCOUNTS BY (G&SR), Inc.
Sincerely,
The Undersigned
See http://www.e-goldstrong.com/ (this web is now gone11/11/07)
There were others who even wrote to President George W. Bush. *petitiononline.com
Here we are a full one year later after e-gold Ltd, closed those accounts and this advisory comes from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Financial Crimes Enforcement Network
Advisory
FIN-2007-A001
Issued: October 16 2007
Subject: Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity
“…The Financial Action Task Force (FATF)1 has recently determined that Iran’s lack of a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability within the international financial system. …As noted in the statement, “FATF members are advising their financial institutions to take the risk arising from deficiencies in Iran’s AML/CFT regime into account for enhanced due diligence. Iran is currently the only country for which FATF has publicly identified such a significant AML/CFT vulnerability. FATF called upon Iran “to address on an urgent basis its AML/CFT deficiencies, including those identified in the 2006 International Monetary Fund Article IV Consultation Report for Iran“2
“Financial institutions also are reminded of the existing U.S. sanctions that are administered by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) with respect to the Government of Iran, including but not limited to Iranian Government-owned banks, as well as other sanctions imposed on Iranian entities that have been linked to terrorist activity and the proliferation of weapons of mass destruction. Information about these sanctions is available on OFAC’s website at http://www.treasury.gov/offices/enforcement/ofac/.” *fincen.gov
It seems that e-gold Ltd, took appropriate action by closing those accounts and preventing any further business. Their moves from a year ago were well in advance of more and more threatening financial news coming from that country. Good job e-gold. With my 20/20 hindsight I can now say that was an excellent move.
May I ask…who’s the bad guy now?
I’m sure a majority of previous Iranian e-gold users were honest persons and good business people, it’s a shame for them, the governments can’t sort things out, but rules are rules what can you do?
I believe e-gold did the right thing.
How do you now feel about the e-gold Iranian account closures?
May I ask…who’s the bad guy now?
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The US Government and it’s efforts to vilify an entire country in the name of “security” .. or maybe it is simply to build up public support for another pre-emptive strike and war.
Whatever the reason E-Gold acted is still not clear and I still find their actions obnoxious to any democratic society.
*
I’m sure a majority of previous Iranian e-gold users were honest persons and good business people, it’s a shame for them, the governments can’t sort things out, but rules are rules what can you do?
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E-gold could provide an enhanced identity system for Iranians as one example….. Much can be done before an abitrary decision to punish an entire country of innocent peoples is made imho.
surely ceasing business with Iranians does not necessarily mean “absorbing” their funds. should have let them cash out.
Mark,
For me the guy in the wrong is the guy who doesn’t respect private property. Every private operator of a business should be at liberty to decide which customers’ business he doesn’t want, of course (in the US there are strict limitations to whom you are allowed to turn away), but if e-gold doesn’t want business from Iranians, or isn’t allowed to serve Iranians, then it should inform them accordingly and force them to outexchange their holdings.
Deleting accounts and confiscation third party property is NOT what one would expect from a reputable operator. If e-gold was compelled to do it against its own wishes – and we have to accept that this option might in fact be what happened – then that would change the situation, of course. But short of that, I would consider the taking of third party property with the owners’ consent to be, well, theft.
No matter what the reason or who the parties involved, disrespect for third party property rights, is theft. Period.
A government might call it ‘neccessary’, media might call it ‘rightful confiscation’ or whatever, but when all is said and done, it’s theft.
The only thing to figure out now, is if e-gold was forced to do it or volunteered to do it, and if they handed the gold to the government – or a trustee – and if they maintain full records of the holdings in question with view to return them if the sanctions against Iran were to be dropped in the future.
I continue to support e-gold, because I am fairly certain that they did not just steal the gold, not voluntarily. But it would have helped if they had made an announcement. Of course, maybe they weren’t allowed to do that either…
Cheers,
Robert.
E-gold was never reputable and will never be that way, the scams for the past 8 years where only possible with the way e-gold did handle the business. Without the help of e-gold all the scams could not have gone for that time as they where going. First being the biggest criminal on the Net and now want to be holier than the Pope makes no sense at all, but that they closed down all the Iranian accounts comes for sure from pressure from the faschist Government of the US and their terrorist enforcement groups.
Frederic, if E-gold was never reputable, try checking the poll which I created. E-gold topped the list of people’s favorite digital currency as compared to the rest.
And it has been a milestone since E-gold has started more than 10 years ago. Which digital currency is your favorite? Assuming it’s Paypal? ;)
Getting facts right before showing your knowledge would be much appropriate. E-gold is reputable.