When I open a bank account or credit card, it is instantly accessible nationwide just like a credit report. What about opening an exchange account and filling out KYC information in the U.S. or internationally? Is it uploaded to some FinCEN database similar to the passport personal record database or is it just kept locally in case of an audit?

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    You may want to make a reality check if you think that a "national" database is "global". The world is not your tiny small nation. – TomTom May 9 '19 at 20:35
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    @TomTom: I hope you never use the adjective universal except in regard to astronomical phenomenon larger than a galaxy :-p – Ben Voigt May 10 '19 at 3:26

It depends on the bank. They are obligated to keep information on file in case of an audit (which are often regular). They may use databases in addition to the ones they are obliged to use (such as the lists of blacklisted persons). Many of these databases work in such a way where they can use the database if they also contribute to it, which may result in information being shared. Sharing of information should be outlined by their privacy policy. If they see activity that they believe to be suspicious, they are also obliged to file a suspicious activity report.

If you open a credit card, they will contribute information about the account holder to at least one of the credit reporting agencies.

  • This is a very vague answer for a topic I think is very important. I'd prefer if someone who runs for instance an exchange and knows the process could answer if it's similar to the passport or bank database. – user5389726598465 May 10 '19 at 16:22
  • KYC is left to individual firms to implement how they see fit. You can check the regulations to see what is required. Oftentimes they are reinforced by their own experiences- a larger firm that has experienced a lot of fraud in the past will have tighter procedures. – xirt May 10 '19 at 16:53
  • Specifically there's no universal compliance database though? I'm not worried about my identity being verified as I'm not doing anything illegal or evading taxes. I'm worried specifically about issues I've had in the past with individuals I know gaining instant access to my bank accounts and location without permission. – user5389726598465 May 10 '19 at 16:58
  • No, not that I’m aware of (though I could be wrong). There is not even a central database (yet) for securities trades. Creditors with court orders can put restrictions on bank accounts, and most US banks report to the IRS. Swiss banks have much more strict privacy rules (prison time for bank employees disclosing bank information), though last time I checked you need a minimum of $50,000 to open an account as a non-resident and if your aggregate balance is over $10,000 in foreign accounts over a calendar year, you have to report all your foreign accounts to FinCEN or face stiff penalties. – xirt May 10 '19 at 17:09
  • KYC databases are curated by private companies and provided as a business service to financial institutions, largely. – Andy Jun 10 '19 at 20:13

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