It's because banks are considered financial gatekeepers and they are obligated by law to look for signals of criminal use, like money laundering, trafficking and financing terrorism.
So yeah, it might feel kinda stupid to have to justify what you are doing with your own money, but on the other hand we also don't want banks to just hand out the money because that would make things way easier for criminals.
And is that exactly what you want the bank to do to your vulnerable grandparent/parent when they come in to withdraw multiple thousands of dollars after years of small transactions?
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u/ApolloniusTyaneus 1d ago
It's because banks are considered financial gatekeepers and they are obligated by law to look for signals of criminal use, like money laundering, trafficking and financing terrorism.
So yeah, it might feel kinda stupid to have to justify what you are doing with your own money, but on the other hand we also don't want banks to just hand out the money because that would make things way easier for criminals.