Why Hipsters’ Beer Money is Being Seized by the Treasury Dept

Venmo, an app created by PayPal, has become Millennials’ default means of sending and receiving money. Splitting a bar tab? Venmo me. Utility bill due? Venmo me. Rent due? Venmo me.

The app is linked to users’ bank accounts and, usually, their Facebook account as well, which makes it incredibly easy to locate the person you want to pay.

In order to send or request money, users must identify what the transaction is for. When anyone pays anyone else for anything, other users can see what the transaction is for. This provides a great opportunity to be witty and ironic — and most. Millennials probably assume this feature is simply for that reason: to make it more fun. But it’s not.

“ISIS beer funds!!!”

The Department of the Treasury defines Venmo as a “Money Service Business,” which means it is subject to the same oversight by the Office of Foreign Assets Control (OFAC) as other financial institutions.

Which explains why one payment of $42 for “ISIS beer funds!!!” was flagged by Venmo, and the money was not returned. Users paying friends for “Cuban food” have also had their transactions flagged and put through added scrutiny, because Cuba is a country sanctioned by the United States.

The reason PayPal is so careful, even flagging transactions for ridiculous things like “iced coffee obama inside job nsa syria,” is because they have faced hefty fines for OFAC violations in the past.

PayPal was previously assessed a $7.7 million fine for allowing users to transfer $44,000 in illegal payments to Sudan, Cuba and Syria. In essence, PayPal would rather keep some kid’s $42 dollars than risk having to pay the government $42 million — and we can’t really blame them.

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