PayPal is obviously trying to rejuvenate the battered image it now has in the eyes of the world after the entire Wikileaks debacle. PayPal had earlier suspended the accounts of customers who had donated to whistleblower website Wikileaks right after Cablegate. Their feeble reasons as to why the accounts were suspended were overshadowed by the rumors that the United States Government had wrung PayPal’s arm to perform this action. Some of these accounts were also involved in working for Pfc. Bradley Manning the inside man who, many claim, was responsible for the leak of the top secret cables.
One such organization called Courage to Resist also had its account recently suspended by PayPal. Branding PayPal as Evil, the press release by Bradley Manning Support Network claimed that it was and internal policy decision by PayPalto shut down Courage to Resist’s PayPal account, and that the company by their own admissionsaid that there was no legal obligation for them to close down the account.
PayPal, facing severe backlash, retracted their suspension instead saying that Courage to Resist did not comply with their stated policy for non-profits require that the organization have an associated bank account. This is part of the Know Your Customerobligation. In their blog post, PayPal said that they lifted the ban because now they sufficiently know their customer:-
Upon review, and as part of our normal business procedures, we have decided to lift the temporary restriction placed on their account because we have sufficient information to meet our statutory Know Your Customer’ obligations. The Courage to Resist PayPal account is now fully operational.