We’ve all heard of bloggers and writers – mostly conservatives, but not all – that have been de-platformed by social media. These are people that have said something that the social media giants like Facebook and Twitter have found unacceptable, and who have therefore been banned and lost their access to their audiences.
But have you heard of people being de-platformed by their bank?
Actually, in the banking world, it is called “de-risking.” And apparently, a growing number of people has had their accounts closed. Some are finding their funds frozen along the way.
A common pretext for de-risking is a bank’s finding that it isn’t making enough money off a customer’s account. But the proliferation of governmental policies and regulations and the war on cash are also responsible for banks closing customer accounts.
Mark Nestmann, whose business involves helping people establish foreign domiciles, writes, “In the US, tens of thousands of gun sellers, coin dealers, fireworks suppliers, dating services, US citizens living abroad, Muslim students, money services businesses, diplomats, and even porn stars like Teagan Presley have had their accounts closed due to the de-risking phenomenon.”
According to Nestmann,
“It’s not really surprising that US banks are de-risking as fast as they can. They must follow strict ‘know your customer’ rules and also report an ever-larger list of supposed ‘suspicious transactions’ to a secretive Treasury bureau called the “Financial Crimes Enforcement Network,” (FinCEN).
“If a bank perceives a customer as ‘high risk,’ it’s safer to close their account than to possibly face stiff fines and even criminal prosecution. And Congress keeps passing new laws requiring ever-greater levels of surveillance over our financial transactions. Is it really a surprise that a growing number of banks refuse to provide banking services to a growing number of categories of customers?”
One financial consultancy that studied the phenomena found it ironic that regulations purportedly spawned to protect financial institutions are having the opposite effect. They are driving people and business away from financial institutions.
Meanwhile, so-called “anti-money laundering” provisions are casting an ever-widening net. Banks have required foreign embassies, over the protest of the State Department, to close their accounts, while people involved in marijuana commerce in venues where it is perfectly legal to have had banks close their accounts.
All in all, it is another development in the fatigue and confusion of the financial and monetary system. The government, demonstrably incapable of managing its own financial and monetary affairs, compensates with a flurry of intrusions into the private affairs of the people.
We prefer to look at the term “de-risking” from the perspective of our clients and the American people. That is why we recommend holding at least a substantial portion of your wealth in gold. It is the most efficient way to insulate yourself from the financial risk of a hopelessly indebted government and the monetary risk of a confused, money-printing central bank.
Speak with an RME Gold associate today to find out how to de-risk yourself. Simply call our office, (602) 955-6500, and you will be connected to one of our knowledgeable gold and silver professionals.