December 2003 - cypherpunks-legacy

nCipher joined KRAP/GAK drive too?
by Adam Back 17 Dec '03

17 Dec '03

This arose out of a discussion on ukcrypto about NAI (which PGP Inc is now part of) having recently rejoined the KRA list -- I notice that nCipher are on it too, and there was a earlier exchange on ukcrypto about nCipher... ========= nCipher too are now on the KRAP list (wonder how long for?) Bruce Tober forwards from www.kra.org: > [...] > nCipher Corporation Ltd. nCipher fairly recently made some press release that was commented on on this list as sounding a bit in favour of UK/DTI/GCHQ GAK attempts. Then they claimed that it was just being read incorrectly and the text was neutral and the title that was badly chosen and by hired PR. So nCipher guys, how do you explain the membership of KRAP away? >From the last list discussion, Ian Jackson, who works for nCipher wrote: : We do not have any weakened or GAK products. The Marketing Director : has assured me that we have no plans to produce any. also: : So, in summary, there are no artificial restrictions on the sizes of : keys which can be used, generated or stored by our units, and no : backdoor GAK or key recovery facilities. given the KRAP membership one might have cause to be worry that this may not still be true. Perhaps people using recent nCipher boards or with recent software upgrades ought to read the specs real closely -- to see if it admits to encrypting stuff to GCHQ also! Ian also wrote (in a post marked as not an official nCipher statement): : I personally would feel that putting deliberate backdoors or other : similar things into our products would be highly unethical and I would : have nothing to do with it. and: : This has nothing to do with the spooks or escrow or anything of the : kind. That's what GAK and KRAP is all about -- putting backdoors into products which the government and secret service groups like GCHQ, NSA and ECHELON get the keys to. and: : I do believe that the personal views of senior management at : nCipher - particularly towards the technical end - are opposed to : escrow et al. Perhaps those technical types could have a go at prevailing over whichever marketing type or suit decided to sign up for KRAP. This is not intended to attack Ian, as he seemed pretty much against GAK, and Niko van Someren to some extent too. Not so sure about the other non technical can Someren, but clearly someone in nCipher thinks KRAP and GAK are a good marketing ploy. Otherwise, I figure you're better off giving money to DEC alpha than supporting GAKkers. Alpha's run SSLeay pretty fast. Adam ========= and a second post, with more specifics: ========= I wrote: > nCipher too are now on the KRAP list (wonder how long for?) here we go: http://www.ncipher.com/news/files/press/97/keyrecov.html since May 97! contains such gems as: : We are delighted to support the Key Recovery Alliance," said : Alex van Someren, President of nCipher. so that pin-points at least one GAK enthousiast at nCipher. It also makes for some rather strange contradictions. The flap about nCiphers apparent whole-hearted support for DTI GAK attempts was May this year -- nCipher had already been a paid up KRAP member for a whole year. press release continues (least there is any confusion as to what KRA as an organisation is about): : Encryption makes information readable only to a person holding a : unique "key" which will unlock the data. Encryption is critical to : ensure the security of sensitive information that is either stored : electronically or sent over public networks such as the Internet. : Key recovery is a new method that allows for authorized access : to encrypted information without the need to store or "escrow" : any encryption keys with a third party. Key recovery is an : effective tool to meet commercial, private and institutional needs. institutions obliquely mentioned being presumably the likes of GCHQ and NSA? yet Ian was saying: > : So, in summary, there are no artificial restrictions on the sizes of > : keys which can be used, generated or stored by our units, and no > : backdoor GAK or key recovery facilities. saying there were no key recovery facilities, and : We do not have any weakened or GAK products. The Marketing Director : has assured me that we have no plans to produce any. and no plans to install any. yet this is what KRA is all about, and they were signed up to it already at that time. I suppose someone is now going to try to claim that KRA is all about key recovery for commercial purposes, but not for government -- but this is not the way I understand that KRA came into being at all. I think it is very much a NSA led attempt to further the clipper attempts. If I recall it started in the wake of the NSA/NIST attempts at clipper IV (or whatever number it was at by then) to coerce companies into including software based key escrow. Probably tied up with the permission to use marginally higher key lengths if the company can demonstrate to NSA a plan to introduce GAK in two year time scale (within the US), though I may be forgetting the details. Anyone like to clarify KRAs aims and history? Adam

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[ISN] Privacy Group Pushes For Hearings on ECHELON (fwd)
by Jukka E Isosaari 17 Dec '03

17 Dec '03

---------- Forwarded message ---------- Date: Fri, 13 Nov 1998 06:52:45 -0700 (MST) From: mea culpa <jericho(a)dimensional.com> To: InfoSec News <isn(a)repsec.com> Subject: [ISN] Privacy Group Pushes For Hearings on ECHELON Push for hearings on Echelon: Global spy system needs scrutiny, says rights group http://www.worldnetdaily.com/bluesky_exnews/19981112_xex_push_hearing.shtml Stephan Archer In an effort to create some accountability between the country's citizens and the National Security Agency's top-secret global surveillance system known as Echelon, the Free Congress Foundation is urging that congressional hearings be held concerning the NSA's use of the system. Originally, Echelon was designed to spy on the Communist Bloc during the Cold War. However, since the end of the Cold War, the NSA has used it for other questionable purposes that include spying on the citizens of U.S. allies as well as the citizens of other countries, commercial spying, and even domestic spying. In essence, Echelon works through a series of high-tech spy facilities located primarily in five countries: the United States, Canada, England, New Zealand, and Australia. These countries, which are sworn to secrecy about the project in a secret agreement known as UKUSA, all actively take part in this encroachment of privacy into the lives of the people of the world by collecting virtually all fax transmissions, e-mails, and phone calls. Not even cellular phone calls escape the grasp of the Echelon system. "Obviously, we need to have these capabilities," said Wayne Madsen, who worked in the National COMSEC Assessment Center at the NSA's Fort Meade, Maryland, facility back in the 1980s and is currently a senior fellow at the Electronic Privacy Information Center. As an example of our country's need for the system, Madsen said, "No one can argue about using the system to counter terrorism. Where people will have a problem is where Echelon is used for political and business interests." The Echelon system gets most of its data by collecting all transmissions handled by the Intelsat and Inmarsat satellites, which are responsible for much of the electronic communication that takes place between countries. Earth-bound communication is sucked up and absorbed by other spy satellites that the NSA has launched into space. "It's a huge vacuum cleaner," said Madsen. Once these spy facilities collect the phone calls, e-mails, and faxes, of virtually everyone on earth, the Echelon system sorts them through a kind of filter system known as the Echelon dictionary. This dictionary looks for "flag" words in all of the transmitted communication. While it lets a majority of all collected material pass through its filter, it tags those that may pose a threat and tracks all subsequent communication coming from the source of the original "flagged" message. Concerning Echelon's inherent intrusion on people's privacy, Patrick Poole, the deputy director for the Center of Technology Policy at the Free Congress Foundation, said, "While we understand the need for the intelligence power embodied by Echelon, the indiscriminate use of Echelon presents major threats to liberty not only to U.S. citizens but to citizens around the world." And this threat is real. The foundation's report states that U.S. leaders have, in fact, already abused this awesome technology. For example, the report states the following: "In September 1993, President Clinton asked the CIA to spy on Japanese auto manufacturers that were designing zero-emission cars and to forward that information to the Big Three U.S. car manufacturers: Ford, General Motors and Chrysler." "You can assume that all major U.S. corporations are fed items of interest (via Echelon) from time to time to give them a leg up on international competitors," said Madsen. Although this may be seen as a strategic corporate weapon for American businesses, in reality, it's an example of technology that can get out of hand. For example, former Canadian spy Mike Frost stated in his book, "Spyworld," that in 1981, there was an "accidental" cell phone intercept of the American ambassador to Canada that resulted in the U.S. getting outbid by the Canadians in a grain deal with China. The deal brought in $2.5 billion for the Canadian Wheat Board. With this kind of abuse of Echelon's power, the question as to whether or not the U.S. government has been using this power for political purposes can be easily raised. This question is seemingly answered in the foundation's report. "The discovery of domestic surveillance targeted at American civilians for reasons of 'unpopular' political affiliation -- or for no probable cause at all -- in violation of the First, Fourth and Fifth Amendments of the Constitution is regularly impeded by very elaborate and complex legal arguments and privilege claims by the intelligence agencies and the U.S. government," the report says. When asked if the system has been used by the U.S. government to spy on its citizens, Madsen told WorldNetDaily that he was sure it has been. "I don't believe that the NSA or the current Administration would hesitate to use this system on American citizens for their own agendas," he said. Outraged by this flagrant abuse of power illustrated by our country's elected officials, Poole said, "While the U.S. is the prime mover behind the Echelon system, it's shameful that the European Parliament is the body holding the constitutional debate in regards to Echelon today." A September 1998 report for the European Parliament by the Omega Foundation said, "Within Europe, all e-mail, telephone, and fax communications are routinely intercepted by the United States National Security Agency. According to the Omega Foundation report, it is this ability of the NSA that brings major concern to the European Parliament. In an effort to bring the issues surrounding Echelon to the forefront of American politics, the Free Congress Foundation plans to send out a report about Echelon to all of the 500 policy organizations in the U.S. as well as to select members of Congress. These select individuals include members from both the House and Senate intelligence committees as well as House and Senate Constitution subcommittees. Copies of the report will also be sent to the congressional leadership of both parties. Although the foundation is hoping to get some action out of these members of Congress, Poole said that support at the grassroots level of our nation's political structure will be a must if this issue isn't to end up buried by the intelligence committees. "For there to be any account and oversight to the Echelon system, the American people are going to have to contact their elected representatives in order to investigate the abuses that we know have occurred in regards to the Echelon system," Poole said. See Free Congress Foundation's report on Echelon at: http://www.freecongress.org/ctp/echelon.html -o- Subscribe: mail majordomo(a)repsec.com with "subscribe isn". Today's ISN Sponsor: Repent Security Incorporated [www.repsec.com]

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Enter Symbol's Developer Contest at the Palm Computing Platform Developer Conference!!! (revised message)
by palmdeveloper＠palmdevcon.com 17 Dec '03

17 Dec '03

Symbol announces the first annual Symbol SPT 1500 Developer Contest!!!!! You could win a Toshiba Tecra 780 DVD 266 MHz Pentium II Notebook by developing the Best SPT 1500 Application or You could win a EXP PC Card DVD Traveler Bundle by developing the Best Riverbed Scout MTS Application or the Best Puma Satellite Forms Application or the Best IDEAM EZTrak Application. Other cool prizes will also be awarded. Everyone who participates will receive a t-shirt. You must be a registered attendee of the Palm Computing Developer Conference to participate. Winners will be announced at the Conference on December 4. For more details on the contest, and to register for the conference, point your browser to http://www.palmdevcon.com.

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Enter Symbol's Developer Contest at the Palm Computing Platform Developer Conference!!! (revised message)
by palmdeveloper＠palmdevcon.com 17 Dec '03

17 Dec '03

Symbol announces the first annual Symbol SPT 1500 Developer Contest!!!!! You could win a Toshiba Tecra 780 DVD 266 MHz Pentium II Notebook by developing the Best SPT 1500 Application or You could win a EXP PC Card DVD Traveler Bundle by developing the Best Riverbed Scout MTS Application or the Best Puma Satellite Forms Application or the Best IDEAM EZTrak Application. Other cool prizes will also be awarded. Everyone who participates will receive a t-shirt. You must be a registered attendee of the Palm Computing Developer Conference to participate. Winners will be announced at the Conference on December 4. For more details on the contest, and to register for the conference, point your browser to http://www.palmdevcon.com.

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Re: DBS, Privacy, Money Laundering nonsense.
by Robert Hettinga 17 Dec '03

17 Dec '03

-----BEGIN PGP SIGNED MESSAGE----- At 11:57 PM -0500 on 11/13/98, Black Unicorn wrote: > If only we could be rid of this pesky cash would could eliminate organized > crime forever. Reminds me of something Vinnie Moscaritolo, my alter ego and Samoan attorney, once said. "'If we could just pass a few more laws' we could all be criminals." Nonetheless, I think that DBS will be much more about economics than privacy or even law. The contrapositive of Unicorn's excellent rant is that the market for money "laundering" and financial privacy is a rediculuously small fraction of the market for economic efficiency. That digital bearer settlement gives us more or less perfect financial privacy if done under certain conditions is much more a happy accident than anything else, just like the cheapest way to do a transaction prior to blind signatures and hash collisions was with book-entry transactions instead of paper bearer certificates. I suppose it *might* turn out that you really *can* do an instantaneously executing, clearing, and settling on-line realtime book-entry transaction, for everything from pico- to quadridollars, and it would be cheaper, both macroeconomically and microeconomically, than a digital bearer one, but I just don't think it's possible at all. And, of course, we wouldn't have coach fare to Cleveland without a bunch of "fanatics" out there, prattling away about slipping the surly bounds of earth, the joy of flight, and all that... ;-). Thank god for the "fanatics", I say, but let's make sure we pay attention to Bill Bradley's adage that it's bad luck to be behind at the end of the game. Whatever is cheapest while still remaining a functional bearer protocol wins, in other words. And, in my book, "functional" means "functionally anonymous". It's just cheaper that way. Having a plane that actually flies is way cheaper than one which just goes fast down the runway, or even one which scoots along nicely off the ground, but only in ground effect. Cheers, Bob Hettinga -----BEGIN PGP SIGNATURE----- Version: PGP for Personal Privacy 5.5.5 iQEVAwUBNk0f7cUCGwxmWcHhAQErBQgAhaFscqaknL0EMnsiKMWYgoHntw88JE2Z 11K8/oyoG/dX8eus5Wqnh05eVY8JWGQ9Fu3C2uXPZbZCa5wh7tjrmIcWOTDgx8kC Sz11IJJLdcWrdTPw7a1sf/WwhyG4f7NVlyVGNqMVuGrBjImsC5TtG2yU39DVME08 ZR3bVdn6egcCDpve+E7RQ0LYWDHxitxYV3RIaCG/wj9zp5JrMPTAvIgbT+J62T8s bYUNJyf7XQnkcT5275VLAzFYy+3KBRuyp9k6uIhBaBGKBNRUw/wBwTB8NoBMPcd8 AT3276SNz1oBA+Z/R0JPRBrRkAfio2o3DFIXoC5NY49ikpBuyOEQHg== =R0aY -----END PGP SIGNATURE----- ----------------- Robert A. Hettinga <mailto: rah(a)philodox.com> Philodox Financial Technology Evangelism <http://www.philodox.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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New Electronic Financial Services Links
by Robert Hettinga 17 Dec '03

17 Dec '03

--- begin forwarded text X-Sender: johnmuller(a)mail.earthlink.net Date: Fri, 13 Nov 1998 16:11:55 -0800 To: e-carm(a)c3po.kc-inc.net, dbs(a)philodox.com, dcsb(a)ai.mit.edu From: John Muller <johnmuller(a)earthlink.net> Subject: New Electronic Financial Services Links Mime-Version: 1.0 Sender: <dbs(a)philodox.com> Precedence: Bulk List-Subscribe: <mailto:requests@philodox.com?subject=subscribe%20dbs> X-Web-Archive: http://www.philodox.com/dbs-archive/ New links that will shortly be added to the ABA Joint Subcommittee on Electronic Financial Services Web site (http://www.abanet.org/buslaw/efss) in no particular order: Dept. of Commerce request for input on data privacy principles "safe harbor" http://www.ita.doc.gov/ecom/menu.htm SEC announces 23 enforcement actions for Internet stock fraud http://www.sec.gov/news/netfraud.htm RISKS Digest Vol. 20 No. 6, Dan Geer - "Risk Management is Where the Money Is" http://catless.ncl.ac.uk/Risks/20.06.html European Commission proposes a directive on distance selling of financial services http://europa.eu.int/comm/dg15/en/finances/consumer/891.htm European Commission proposes a framework for the European financial services sector to facilitate cross-border operation http://europa.eu.int/comm/dg15/en/finances/general/fsen.htm European Commission press release: the EU Data Protection Directive takes effect http://europa.eu.int/comm/dg15/en/media/dataprot/news/925.htm Federal Reserve announcement on enhanced settlement services http://www.bog.frb.fed.us/boarddocs/press/BoardActs/1998/19981103/ Federal Reserve announcement of reduction in fees for electronic payment services http://www.bog.frb.fed.us/boarddocs/press/BoardActs/1998/19981104/ OTS policy statement on privacy of customer information http://www.ots.treas.gov/docs/77879.html Journal of Information Law and Technology issue on Globalisation and E-commerce http://elj.warwick.ac.uk/jilt/issue/1998_3/default.htm Papers from the 21st National Information Systems Security Conference http://csrc.nist.gov/nissc/1998/papers.html BCI - Northern Trust 2nd Circuit case under UCC Article 4A and common law seeking a return of funds from an electronic funds transfer http://www.law.pace.edu/lawlib/legal/us-legal/judiciary/second-circuit/test3 /97-7633.opn.html Hogan Systems v. Cybresource 5th Circuit decision on copyright and trade secret claims arising out of third party contractor use of software licensed to a bank http://laws.findlaw.com/5th/9710645CV0.html FTC comments on proposed UCC Article 2B http://www.ftc.gov/be/v980032.htm The ERISA Industry Committee comments to the IRS on the use of new technologies in retirement plans http://www.eric.org/testimony/technologies.htm Council of Europe - model contract clauses on transborder data flows http://www.coe.fr/dataprotection/ectype.htm E*Trade invests in International Securities Exchange, an electronic options exchange in development http://www.etrade.com/cgi-bin/gx.cgi/AppLogic+Home?gxml=pr111098c.html Electronic Markets Vol. 11 No. 3 on electronic contracting http://www.electronicmarkets.org/netacademy/publications.nsf/all_pk/929 Adrian McCullagh article on Trust in Electronic Commerce http://www.acs.org.au/president/1998/past/io98/etrust.htm CheckFree and others form the Electronic Banking Association http://www.e-banking.org/ John Muller johnmuller(a)earthlink.net "Things are not as they seem, neither are they otherwise" --- end forwarded text ----------------- Robert A. Hettinga <mailto: rah(a)philodox.com> Philodox Financial Technology Evangelism <http://www.philodox.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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DBS, Privacy, Money Laundering nonsense.
by Robert Hettinga 17 Dec '03

17 Dec '03

--- begin forwarded text From: "Black Unicorn" <unicorn(a)schloss.li> To: <tboyle(a)rosehill.net>, "dbs" <dbs(a)philodox.com> Subject: DBS, Privacy, Money Laundering nonsense. Date: Fri, 13 Nov 1998 22:57:51 -0600 Keywords: dbs MIME-Version: 1.0 X-Priority: 3 (Normal) X-MSMail-Priority: Normal Importance: Normal X-MimeOLE: Produced By Microsoft MimeOLE V4.72.2106.4 Sender: <dbs(a)philodox.com> Precedence: Bulk List-Subscribe: <mailto:requests@philodox.com?subject=subscribe%20dbs> X-Web-Archive: http://www.philodox.com/dbs-archive/ tboyle(a)rosehill.net comments: [...] > But I simply cannot comprehend the breadth of the agreement > on this dbs conference, and depth of conviction, that DBS money > should be designed with the **deliberate objective** of being > untraceable, for purposes of law enforcement or taxation. In the case of some DBS advocates you are overstating the matter. In the case of others, vastly understating it. > I have a lot of respect for you guys' intellect but I think > you're wrong on two fundamental points: > > 1. Rule of law. Money laundering is a critical piece in > organized crime. The democratic countries have banking laws. > Do you think these laws should be followed, or NOT? (Scurrying > of feet as all the DBS readers avoid answering.) Well let's examine this. The view that all democratic countries have banking laws really begs the question. "What are the differences between said laws." I can tell you with solid authority, they are many. I've often repeated this story here and elsewhere. It's all a matter of public record. Set the way-back-machine to just after Reagan has entered office. Ole Ron began to crack down on tax evasion and in particular offshore havens. Taxes would be cut, it was reasoned, but only if loopholes were filled and evaders rooted out. (Those of us old enough to remember might even recall nodding at the sense of it). This policy was particular hard on certain Caribbean nations. This was the time of operation Tradewinds (search for it in the congressional record) and other IRS black projects where the IRS actually violated local law to spy on foreign banks even going so far as to drug guards, steal the briefcases of banking executives, perform unwarranted searches, bribe foreign officials and all manner of nonsense to root out tax evaders which might also be U.S. citizens. For a long while there was a project which opened and Xeroxed all the incoming mail at JFK which appeared to originate from offshore havens. This wasn't in the 50's mind you, but the 80s. It was acts like these which prompted the Swiss to strengthen their banking secrecy during the Second World War. Just another day in the park in the U.S. Just recently this year Mexico nearly indicted several U.S. law officials for breaking Mexican law during the investigation of several Mexican banks. Clearly the practice hasn't abated much in the last 15 years.. (Note also that today all these methods (except for drugging guards maybe) have their legal equivalents in the United States, which is in itself a powerful statement). This continued for some time back when Ron was at the helm until the United States finally began to threaten to revoke the U.S. charters of certain banks it considered uncooperative. At this point a visitor, unannounced, flew into D.C. and literally dropped by the White House with no press coverage or fanfare at all in the late evening. That visitor was Margaret Thatcher and she proceeded to explain to Ron over the course of a few hours that if he kept it up many of the British Protectorates would literally have their economies crippled. Literally overnight the matter was dropped and the offshore centers left to quietly continue their business. So much for democratic countries with universal ideas about banking law, or the rule of "law and order" in banking regulation. This is but one example. So: Rule of Law - means little in the global-political scheme of things Democratic Countries Have Banking Laws - none of which are consistent or consistently applied Money Laundering is a Key Piece of Organized Crime - This begs a definition of Money Laundering. "Concealing the proceeds of a criminal act" sounds legitimate, but consider that it has been held to apply to a store clerk who sold food stamps for cash and deposited the proceeds in his personal (non-anonymous) checking account: Indicted in Federal Court for Money Laundering with a maximum possible term of 35 years. (This is a prosecutorial tactic to get a guilty plea to the basic theft charge). Consider also that third parties often take it on the chin with the wide definition currently applied. Case in point: Ma and Pa travel agency innocently accepts a deposit from notorious attorney of drug dealer. Their entire holding account is seized including the deposits of some 700 other potential travelers. After 7 years of fighting the seizure, the money is finally returned, without interest. (Effectively halfing the value of the funds). The business is ruined, its reputation in tatters. Ma and Pa fight it out in bankruptcy, lose their house, most of their retirement proceeds, etc. In the process this case sets the precedent that any amount of illicit funds ($1) deposited in any size account ($500 million) will render the entire account liable to seizure and permit it to be held in lieu of forfeiture hearings. That can go on for 7 years or so. Money which is "laundered" has its title literally revert to the U.S. Treasury. This means third parties who innocently accept these funds are liable for their return, even if they are passed on in the course of business. Beginning to seem silly? Money laundering is an invented offense. It's definition in the United States has grown so broad so as to be laughable, if not so frightening. Do not think that these are isolated incidents. So, money laundering in its commonly understood sense might be key to organized crime, but what passes for money laundering in the United States has little to do with it. Myth: Money Laundering laws have a serious impact on organized crime. This is increasingly nonsense. The United States spends close to $22,000.00 to seize $1.00 of illicit funds. Money Laundering today is extremely sophisticated and enforcement doesn't catch the drug dealers, it catches professional money launderers. Today if you are a drug lord you drop $30 million in cash with a professional launderer who cuts you a "clean" check for 85% of that figure or so on the spot and takes the risk of laundering the funds on his own. Myth: Money Laundering can be detected accurately and effectively and leads to drug and organized crime convictions. Nonsense. Assume for sake of argument that you could detect 99% of fraudulent transactions with the measures in place (entirely impossible) and that your false positive rate was only 1% (also entirely impossible). SWIFT alone processes $2 trillion per day. That's on the order of $600 trillion per year, just in SWIFT. (Add another $1.3 billion for CHIPS and $989 million for Fedwire daily. Oh, don't forget the foreign exchange markets, oh and NYSE, oh and NASDAQ, oh and international letters of credit, oh and...) The most sinister estimates of the global criminal economy (primarily drug money) run around $400 billion per year. Your false positives will identify $6 trillion in naughty funds that are actually pure just in SWIFT. Your correct hits will identify $396 billion in naughty funds in all systems worldwide. In this example you will have 15 times as many false hits as correct hits ignoring the lionshare of world financial systems. This is under the very best of circumstances. It's a losing game.. It's a game only the mathematically challenged or politically motivated will play. In fact, money laundering is a tack on offense that is brought to bear after an arrest on other charges has been made. The number of cases that originate with a money laundering investigation is vanishingly small. The payment system today eats up over 1.5% of the GNP primarily because of nonsense regulations like CTR's and other transaction reporting requirements which can cost up to $15 per transaction and (as we see above) have little if any effect on professional money laundering. Given these numbers the degree of "fraud" in the world financial system is far better than in the credit card system, which has pretty much reached equilibrium. (Fraud accounts for about 5% of credit card costs. Customer service accounts for about 15%). > There is a certain logic in the notion of having a legislative > process and laws. Our laws in the U.S. weren't written by > angels up in heaven, but they are better than some other places. In the case of money laundering regulation I should say almost _no_ other places. > If DBS participants advocate that money laundering laws are > not to be followed, I'm sorry but YOU GUYS have the burden > of logically arguing your position. So shut up and quit > raggin' on *me* about it. I would just like to see them applied with rationality. It's fairly clear that that's too much to ask of the United States. Interestingly enough it's typically multi-party systems of government that have a balanced approach to money laundering. Perhaps this is because grandstanding with things like "the war on drugs" isn't as effective outside of a two party system. Sheds new light on your comment about democracies and banking regulations. Some jurisdictions get along quite well without the nonsense perpetrated in the United States. Like Switzerland. Switzerland has one of the nicest things in a cash economy I have seen. A freely circulated 1000CHF note. It's worth about $750. (The United States phased out $500 bills long ago to deal with laundering). In Switzerland you can drop a 1000CHF note at a restaurant and no one bats an eye. In the U.S. you cant take a cab home from the International Terminal unless you have something smaller than a $50. Somehow Switzerland has manage to survive without looting in the streets and rampant crime. Luxembourg is in a similar situation. I tried to purchase a car some years ago outside of D.C. with cash. Completely legitimate transaction. No interest nonsense for me to worry about. No waiting for the car while the check clears. Simple. Right? The dealership called the police, convinced they were striking a blow against drug dealers. It's really gone too far. > 2. Practicality. Without at least a fig leaf of cooperation > with banking authorities and other police, DBS will not be > permitted. Transactions denominated in DBS won't be enforceable > in courts, and fraud won't be a crime. Reporting fraud in DBS > deal would be like reporting a fraud in purchase of heroin. Practicality? Of course any student of political science will understand that where government enforcement of contracts fails or falls short, organized crime tends to move in. Reporting fraud in the purchase of heroin to the right enforcement cartel tends to be much more effective in rendering results than U.S. courts I'd wager. Clearly, the United States would not benefit by forcing DBS underground. Several jurisdictions will permit DBS and enforce it. (I'm involved in the legislative process for one such law in a European jurisdiction now). If you believe that DBS should be outlawed then you must agree that cash should be outlawed. There is effectively no difference but velocity. > The principal reason for failure of electronic money, other > than cards used in physical establishments, is you can't trust > the seller to send you the goods. That's why everybody is > using credit cards, and bearing the 2-3% charge for "insurance". > > You guys seem to think untraceable DBS will be accepted, if > only a good enough encryption algorithm can be found???? 1% of the GNP. Instant 1% growth for changing a system of clearing. Think about that for awhile. > I think your ideas have a fatal, logical weakness. Without > any practical means to verify who got your money, or even > a legal *right* to enforce a contract, what good is dbs? > It's not even money. It's more like a coupon or something. What you are missing is that all your arguments apply equally to cash. Why is cash used if this is so? Prove to me that you just gave me six $100 bills. You are, "without any practical means to verify who got your money or even a legal *right* to enforce a contract" if the transaction is larger than $500. If only we could be rid of this pesky cash would could eliminate organized crime forever. --- end forwarded text ----------------- Robert A. Hettinga <mailto: rah(a)philodox.com> Philodox Financial Technology Evangelism <http://www.philodox.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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usubscribe
by Ixion 17 Dec '03

17 Dec '03

usubscribe Life is a dream

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USPS "Know Your Customer" Draws Fire
by Eric Cordian 17 Dec '03

17 Dec '03

Privacy advocates are beginning to take notice of the implications of the new Postal Service regulations concerning private mailboxes. ----- SACRAMENTO -- New postal regulations will make private mailboxes "private" no more, may endanger individual safety, and represent another government attack on privacy that should not be tolerated, the Libertarian Party of California announced today. "Why must government continue to erode individual privacy?" asked Libertarian state chair Mark Hinkle. "What's next? Eliminating unlisted phone numbers? Criminalizing the use of pseudonyms?" Under the new rules, published in the March 25th Federal Register, private mailbox customers will now be required to show two forms of ID -- including one with a photo -- when applying to rent, and mail delivered to private mailboxes must bear a new address designation, "PMB," or risk being undelivered. The rules went into effect April 26th. According to the Postal Service, the new rules are designed to combat mail fraud. But that sounds eerily like another recent government proposal, Hinkle noted. "It's 'Know Your Customer' all over again. The government just keeps wanting to invade our privacy." "Know Your Customer" was the name given to proposed government regulations that would have required banks to develop profiles on every customer and report suspicious banking activity to the government. Thanks to a campaign led by the Libertarian Party, the Federal Deposit Insurance Corporation rescinded the proposed rules in March. But the similarities remain: * The postal regulations will increase the burden on "Commercial Mail Receiving Agencies" -- or CMRAs as private mailbox businesses like Mailboxes Etc. are known -- by making them responsible for verifying the customer's identity. "Mailbox companies have an interest in reducing fraud but not in inconveniencing customers," said Hinkle. "Their employees should not have to act as deputies for the Postal Service." * The rules will eliminate the privacy enjoyed by CMRA customers -- and may endanger some of them. "Private mailbox renters often have very good reasons for keeping a low profile, such as battered spouses in hiding, celebrities, and law enforcement officers who want to keep their home addresses confidential," Hinkle pointed out. "The Postal Service is literally endangering these individuals." Small businesses started in a home or a garage may rent a private box to give the appearance of having a physical office. "Thanks to the PMB designation, all that privacy is now gone and those businesses will probably suffer as a result," said Hinkle. Even worse, anyone -- not just the police -- can request to see a customer's application information if that customer is doing or soliciting business from their private mailbox. * Most troubling, the regulations operate under the assumption that the customer is guilty until proven innocent. "Just like with 'Know Your Customer,' the Postal Service is depriving the many of their liberties for the sake of a very small few lawbreakers. The problem is, criminals do not follow the law and will find ways around these rules while law-abiding customers are forced to sacrifice their privacy," charged Hinkle. There's one crucial difference between "Know Your Customer" and the new postal regulations: whereas "Know Your Customer" was a proposed rule, the Postal Service has already adopted the new rules, having first proposed them in August, 1997. "With 8,645 regulations adopted in the last two years, it's easy to see how this one slipped through the cracks," Hinkle concluded. "Libertarians denounce the new postal regulations and call on Congress to recognize the erosion of American privacy -- and to stop it before privacy goes the way of the Pony Express." -- Eric Michael Cordian 0+ O:.T:.O:. Mathematical Munitions Division "Do What Thou Wilt Shall Be The Whole Of The Law"

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baby carrier
by chungdoo 17 Dec '03

17 Dec '03

We are pleased to take this opportunity to introduce ourselves as one of the leading manufacturers-exporters of high grade Baby walker, Baby carrier, Baby swing, Mickey Basketball and Accesorries with beautiful shape in Korea. We hope the articles will be just what you want for outstanding ones compared with the competitors' in quality and design as well. Our baby products has the outstanding points as follows: * Baby walker - Spring Cushion Type * Baby carrier - Comfortable, safe and ligh frame - Padded headrest and Shoulder straps - Adjustable inner seat - Large removable storage bag for baby supplies - Padded waist belt * family carrier - Ages 6 months to 2 years - Frame : Aluminum - Fabric : Nylon - Weight : 1200 g/PC - Double seats for baby and child * simple carrier - Ages 6 months to 3 years - Fabric : Nylon - Support baby with your arms - Simple fuction, simple carrying - Pouch for storage - See through vinyl package * 3+ SWING Our toys are tested to company the requirement of European Standard (Safety of Toys). This high quality product is on all age swing. If has different size settings, depending on the size of your child you can fit the back into either inside (smaller)or(larger)setting. Back Support and front restraint shield are removable. So if can be converted into three swings(infant Swing, Chair Swign and Seat swing) suitable for children 6 months up to 12 years old. * DO RE MI SWING * SEVEN MICKEY - A Mini Basketball Set - Non Toxic PVC Ball * TEN MICKEY * FIFTEEN MICKEY * Accesorries * Feeding echievements * Baby Gift Set To see the design, pls visit our web site, http://www.chungdoo.co.kr and do not hesitate to send your requirements so that we may show you our best service. We are looking forward to hearing a good news from you soon. Faithfully yours, K. J. Kang, President Chung Doo Corporation Tel : (82-2) 565-3115, 565-3885 Fax : (82-2) 565-3110 e-mail : chungdoo(a)chungdoo.co.kr URL : http://www.chungdoo.co.kr

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