I bet you thought people banked in the Cayman Islands because they serve fruity cocktails with tiny parasols in them while you’re waiting for your checks to clear. Well, you’re only partly right. The other reason people keep accounts in the Caymans is to avoid paying taxes and/or to launder their ill-gotten gains.
For many of us this is not news — or at least it wouldn’t be, if not for the brain-dead actions of one such bank and the magistrate they duped into being their monkey.
Swiss Bank Julius Baer used its legal muscle to convince a U.S. judge to close down the WikiLeaks.org domain, because the site contains documents that allegedly show Baer is exchanging its clients’ dirty old dineros for fresh clean ones with just a hint of mint.
Some background: WikiLeaks.org exists so anonymous whistle blowers around the globe can document human rights offenses, corporate malfeasance, nuclear accidents, and the like. The world gets to see what nasty things those in power have been up to, while the leakers get to live their lives without being waterboarded (or worse).
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But the bank’s solution is so mind-bogglingly stupid, you have to wonder if these guys need help getting their pants on each morning.
First, this is exactly the kind of story bloggers and Net-centric journos crave. Big nasty corporation stomps all over plucky public-serving underdog. Who can resist that plot line?
Second, the equation Bank Julius Baer = Money Laundering is now firmly cemented in the minds of everyone who has encountered this story, regardless of whether it’s true.
Trois: The documents in question, which might have been quickly forgotten alongside the 1.2 million others on the site, are now hotter than the Paris Hilton sex video. Dozens of mirror sites have sprung up, and Cryptome.org and PirateBay have squirreled away copies of the docs for any interested parties.
Oh, and by the way, the judge’s order failed to shut down the site. The IP numbers (88.80.13.160) still work, as do its Belgian and Christmas Island domains. Or they would, only last time I checked the sites were overwhelmed with traffic from people with a sudden keen interest in Cayman Islands banking.
It’s a fascinating study in how the courts and high-powered corporations still manage to shoot themselves in the feet when they try to manipulate the Net.
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As crypto-wonk Bruce Schneier has eloquently stated, this ain’t about security, it’s about control. Corporations and governments have an insatiable appetite for it. But I think we’re all better off when they go hungry.