Re:The reason why Paypal does this (Score 1)

"The point I am making is that PayPal have a moral responsibility to disclose to people starting an account if the account is likely to become suspended, it's obvious that an account with "relief fund" in the name is going to be stuffed full of cash in a relatively short timeframe, it's also obvious that you should ask for the same documentation at the establishment of the account that you are going to require to withdraw money from it."

When you open a PayPal account, you fill out a form on a webpage. No one looks at the name to figure out what it's used for. PayPal provides the option of providing additional information before you start doing business. PayPal is very laissez faire when it comes to their customers though until an issue crops up though.