top | item 7283629

Here is a thing that happened

148 points| zdw | 12 years ago |dashes.com

106 comments

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[+] tptacek|12 years ago|reply
In case you're wondering: "Blue Sky" appears to be an alias used by LIMMT, a Chinese company that did business in the US while supplying the Iranian military with weapons material.

OFAC publishes the contents of the SDN and updates to it.

(This comment is descriptive, not normative).

[+] pizza|12 years ago|reply
> The defendants, LI FANG WEI (a/k/a KARL LEE, a/k/a PATRIC, a/k/a SUNNY BAI, a/k/a K. LEE a/k/a KL, a/k/a DAVID LI, a/k/a F.W. LI) and LIMMT ECONOMIC AND TRADE COMPANY, LTD., (a/k/a LIMMT (DALIAN FTZ) METALLURGY AND MINERALS CO., LTD., a/k/a LIMMT (DALIAN FTZ) MINMETALS AND METALLURGY CO., LTD., a/k/a LIMMT (DALIAN FTZ) METALLURGY AND MINERALS CO., LTD., a/k/a ANSI METALLURGY INDUSTRY CO. LTD., a/k/a BLUE SKY INDUSTRY CORPORATION, a/k/a SC (DALIAN) INDUSTRY & TRADE CO., LTD., a/k/a SINO METALLURGY AND MINMETALS INDUSTRY CO., LTD., a/k/a SUMMIT INDUSTRY CORPORATION, a/k/a LIAONING INDUSTRY & TRADE CO., LTD., a/k/a WEALTHY OCEAN ENTERPRISES LTD.) (LIMMT) were indicted on charges of falsifying business records and conspiracy. [0]

[0]: http://www.iranwatch.org/library/government/united-states/st...

[+] gpvos|12 years ago|reply
SDN = Specially Designated Nationals, OFAC = Office of Foreign Assets Control
[+] gambiting|12 years ago|reply
I believe that right now every American citizen should write "Blue Sky" in every possible field on their bank forms when setting a transfer. This is lunacy and incompetence at the highest level.
[+] sneak|12 years ago|reply
Everyone flying should write SSSS on their boarding passes on a predetermined day, too.

While you're at it, retransmit bitcoin transactions that have been slightly altered but that still have valid signatures.

[+] lesterbuck|12 years ago|reply
"Let your life be a counter friction to stop the machine."

in Civil Disobedience, by Henry David Thoreau, 1849

[+] alexeisadeski3|12 years ago|reply
I'm not trying to be inflammatory:

Would you expect anything else from the US gov't?

[+] squintychino|12 years ago|reply
You mean every American citizen... except yourself.
[+] joedevon|12 years ago|reply
The comment about Time Warner Cable was the best part of this article:

"I'm going to write "Blue Sky" on checks sent to Time Warner Cable so they can never take online payments from anybody."

[+] elwell|12 years ago|reply
You mean to Comcast?
[+] DanielBMarkham|12 years ago|reply
"Hey, let's give wide, blunt political power to a bunch of un-elected functionaries, then we can start automating whatever their desires are! What could go wrong?"

And so we're going to end up with a government like Google, where people come to HN to beg for attention just so they can be treated like a human being.

I think it's time we just all acknowledge that the U.S. has the most onerous and insane financial laws in the world. The only reason other countries put up with them is because the U.S. is the sole remaining superpower.

There really needs to be some kind of correction here, but I don't see it happening anytime soon.

EDIT: Just to be clear, I am specifically referring to the Treasury Department handling of overseas payments and expats living abroad, not internal tax or financial regulations. There's a lot out there Google if you want to go look for it, including how various countries have protested being forced to comply with U.S. law, expats giving up citizenship at record rates (though still small in the grand scheme of things), and so on.

[+] anildash|12 years ago|reply
"I think it's time we just all acknowledge that the U.S. has the most onerous and insane financial laws in the world. The only reason other countries put up with them is because the U.S. is the sole remaining superpower."

I'm gonna guess you don't have a whole lot of stamps on your passport.

[+] trumbitta2|12 years ago|reply
"I think it's time we just all acknowledge that the U.S. has the most onerous and insane financial laws in the world."

You should really repeat this to an italian (italian born in Italy, speaking italian as his first language, not italian born in New York) entrepreneur.

But please record a video then share it. I'd really like to see their face :D

[+] JoshTriplett|12 years ago|reply
On the bright side, it's hard to think of a faster way to get an insane law fixed than to have it prevent a law firm from getting paid (except perhaps to have it prevent Congress from getting paid). Perhaps they might want to take this one pro bono?
[+] maxerickson|12 years ago|reply
A bunch of small blue sky political donations.
[+] nikcub|12 years ago|reply
"Blue Sky" is the name of an underground drug marketplace. It is one of the new[1] sites looking to replace Silk Road and is apparently popular.

Onion link:

http://blueskyplzv4fsti.onion/

edit: screenshot of the market homepage:

http://imgur.com/O9fvlxI.png

[1] turns out it was launched in the first week of December, which makes it nearly 3 months old - enough time to get it noticed and flagged by the us.gov.

[+] pmorici|12 years ago|reply
So if this payment needed to be stopped in the eyes of the bank then why did they suggest a measure for circumventing their own rules by sending a paper check.

This is kind of funny I recently purchased a bunch of second hard server parts from the excess department of a mid-sized bank and they insisted on checking my name against the OFAC list before completing the transaction. Insane.

[+] mcherm|12 years ago|reply
What you're missing is that different players in this particular mess have different motivations.

The goal of the OFAC regulators is to stop money from going to terrorists and other bad people. So they prohibit the banks from transferring money to "blue sky" and anyone else on the list. There is no leeway here -- if a bank does not comply the banking regulators have the authority to immediately close the bank an seize its assets and give them to a different bank.

The goal of the IT and operations departments in the bank are to implement the requirements. The IT guys put a simple string match against the text of the online payments. There is no way to add a clause that checks whether it's "really" a payment to the prohibited individual or just someone who stuck a note in the memo field, because computers can't go out and interview the recipient to find out who they are. They also stuck in code to block that recipient from receiving payments in the future because otherwise anyone could circumvent the block completely by simply changing the name on the payment.

The goal of the bank representative that Mr. Dash spoke with was to help her customer. So she suggested sending the paper check. For what it's worth, the OFAC office isn't too worried about the person collecting payment on the check because banks are also prohibited from giving bank accounts to people (or organizations) on the OFAC list.

[+] swombat|12 years ago|reply
> So if this payment needed to be stopped in the eyes of the bank then why did they suggest a measure for circumventing their own rules by sending a paper check.

Making everyone accept a system which doesn't make sense is just another step on the path to a dystopia. You'd be surprised at the number of such rules that existed in communist dictatorships.

[+] psychometry|12 years ago|reply
Why even title a post on a blog if it conveys zero information?
[+] anildash|12 years ago|reply
I had just wanted to document the moment and thought it was kind of funny to do sort of the anti-Upworthy headline.
[+] beedogs|12 years ago|reply
Because it's their blog, not yours, and because a blog isn't a newspaper article?
[+] Houshalter|12 years ago|reply
It seems like HN has a ton of uselessly vague titles. I don't know if I should ignore them or click on all of them to find out what they are.
[+] eksith|12 years ago|reply
The post was on a blog, not a news article and nonsensical titles are commonplace. And the submitter followed the HN guidelines of using the same title of the post.
[+] renownedmedia|12 years ago|reply
Titles are required for nearly all blogging software.
[+] callmeed|12 years ago|reply
> In conclusion, I love my country and like our lawyers and hate our bank

Why do you hate your bank? Chase is probably the best large bank I've ever dealt with and their online/mobile tools are excellent. It's very likely they're just complying with their legal obligations.

If you're just using their standard online bill pay, I'd be curious to see what would happen if you simply added a new payee and slightly changed their name and attempted to pay them.

[+] SwellJoe|12 years ago|reply
As a counter opinion, I hate Chase. Ignoring their deep involvement in illegal activity during the mortgage crisis and manipulations of our economy through revolving door lobbying, and merely speaking from a customer perspective:

1. High fees for international bank wires.

2. Befuddled telephone support when money isn't where it's supposed to be (for whatever reason) with frequent transfers to other departments.

3. Bankers on-site often don't know anything about the more complicated aspects of business accounts.

4. International travel with a Chase card is...an adventure. It took me three or four phone calls to Chase after I was already deep in the rain forest in Chiapas, Mexico in order to free up money to simply buy gas and other stuff. I never got the Chase card working for directly buying gas (while other cards did work, most of my funds were in Chase). I would have to go to an ATM, pay exorbitant fees, and use cash for everything. This was incredibly stressful...being 1000 miles inside Mexico on a visitor visa in a motorhome that gets 10 MPG (so, I needed a pretty big chunk of change to get back home, just on the fuel front, not to mention all the other living expenses).

The online experience has finally gotten better in the past few years, but it used to be pretty awful. One still had to call for almost everything interesting; I used to have to pay them for old statements, to boot!

I didn't choose Chase. My first bank was Texas Commerce. Chase acquired them. I stuck with them for a while after, despite my discontent (it's a lot of trouble to move banks, especially for a business that has incoming credit card payments, and outgoing payroll, among other things). When I moved to California, and formed a new corporation for my company, I opened an account at Washington Mutual. A year later, Chase acquired WaMu as part of the mortgage bailouts. So, Chase has been following me around all my damned adult life. I've given up on getting away from them, though I do have a credit union account for my personal money.

Also, they don't treat their employees very well (an ex-girlfriend worked there for a while in college, before going on to work at Google, and she hated it, especially after uniforms became required).

In short, if I were starting anew, Chase would not be on the list of banks I would consider.

[+] anildash|12 years ago|reply
It blocked several simple variations as being duplicates, likely because the address is necessarily the same.
[+] zdw|12 years ago|reply
> It's very likely they're just complying with their legal obligations.

Legal != !stupid

[+] jmj42|12 years ago|reply
I'd like to concur. I've been banking with Chase in some form or another since their Bank One merger, and they are easily the best large bank I've been a customer of. They even beat most regional banks I've used.

Their online and mobile tools are a big part of that. Their military support is also pretty good (my daughter is USCG) with true cost free banking and low activity military accounts. In fact, they beat USAA on almost every gauge (the exception being USAA makes pay and allowances available a few days early).

[+] dinkumthinkum|12 years ago|reply
As a side note, I find the hyperbole of "killing trees" as a description for "writing checks" a little annoying and uneducated. Does one believe that the energy that makes the Internet possible is free?
[+] pangram|12 years ago|reply
Not free, but I would suspect that paying electronically is at least a magnitude less impactful on the environment. That checkbook had to be produced, shipped to the bank, mailed to you, and then the individual check has to get moved around as well.
[+] PeterisP|12 years ago|reply
The energy spent by the humans who have to touch/move/look/process this obsolete, unneeded artifact is more than the energy needed to process a thousand normal deals on the Internet.
[+] anildash|12 years ago|reply
It was supposed to be silly, not a literal consideration of the ecological impact.
[+] srl|12 years ago|reply
"In conclusion, I love my country and like our lawyers and hate our bank, like all good Americans." Oh my sides.

I get the dim sense, knowing nothing about this stuff, that the job of that office is one of the more headache-inducing ones in administrative government. Preventing people to sending money to (or receiving money from) a list of bad actors is a horridly difficult thing to begin with, but then when they screw up (either like this or in the more common case of money getting through), placing the blame is easy.

On another note, I haven't the faintest idea what the meaning of "blue sky" is, and I can't find anything by searching. Anybody know?

[+] eskil|12 years ago|reply
Amex has a credit card called Blue Sky. Now I kind of want one.
[+] raymondduke|12 years ago|reply
How do headlines like this get noticed? It boggles the mind.
[+] cromulent|12 years ago|reply
It's not the headline but the blogger. Anil Dash was in Six Apart back when the only real blogging platform around was their Movable Type, about 2001.
[+] geon|12 years ago|reply
That last line:

> Customs when returning home to the United States. See? It was all just a harmless mixup.

I suppose it was meant as a joke, but I find it chilling.

[+] sneak|12 years ago|reply
Bitcoin suffers from no such idiotic and arbitrary denial-of-service attacks by intermediaries.
[+] sergiotapia|12 years ago|reply
There's really no need to shoe-horn bitcoin into _every_ hackernews thread.
[+] PeterisP|12 years ago|reply
On the contrary, it's simply a property of being a consumer financial service provider in USA - if a company would offer the exact same bill settlement in bitcoins instead of dollars, all the same restrictions would apply.
[+] tsukikage|12 years ago|reply
No, it just suffers from having all your cash, hard-mined by skimming off the drug economy, regularly stolen by people breaking into poorly secured exchanges ;)
[+] yeukhon|12 years ago|reply
Is it just me or does everyone has to do this: when you need to file more taxes (you need to pay more to the treasury), do you have to put your SSN in the memo field? My accountant said I have to which I dont't feel happy about it...
[+] altero|12 years ago|reply
... and thats why americans have troubles to open bank account abroad.
[+] badman_ting|12 years ago|reply
The last paragraph is perhaps more crucial than it may seem.
[+] sidcool|12 years ago|reply
It seems the paranoia is getting institutionalized.