If you pay to someone who "can't verify their identity" you are basically paying some anonymous person or institution.
Is that legal? In the US? In Europe? I have no idea. Anybody in the know?
I know that in Europe, depending on which country you pay to, you have to do different types of paperwork. So someone in country X in Europe has to do different type of reporting whether they pay someone in X, some other European country, in the USA or in Ireland etc ...
I wonder what the tax authorities would say if you report payments to an "unknown" person in and "unknown" destination. There probably is not even a form for this that you could use.
Comments
That raises some interesting legal questions.
If you pay to someone who "can't verify their identity" you are basically paying some anonymous person or institution.
Is that legal? In the US? In Europe? I have no idea. Anybody in the know?
I know that in Europe, depending on which country you pay to, you have to do different types of paperwork. So someone in country X in Europe has to do different type of reporting whether they pay someone in X, some other European country, in the USA or in Ireland etc ...
I wonder what the tax authorities would say if you report payments to an "unknown" person in and "unknown" destination. There probably is not even a form for this that you could use.
Absolutely true, if we do not do the KYC dance, we will be accused of illegal money transfers.
Image how easy it would be come to launder money with anonymous payments.