Part One: "Know Your Customer" (KYC)
Now the Federal Deposit Insurance Corporation (FDIC) is trying to get into
the "Big Brother Business". Under the guise of combatting money laundering,
they want your bank to determine what are your "usual" transactions, and
report any "unusual" transactions to them! (The following information is
excerpted from an eMail message sent by
Defend Your Privacy .)
Defend Your Privacy is
working against this effort. So far (7 March 1999), the FDIC had logged
over 140,000 comments opposed to KYC, with only 20 , in favor, and
they still have stacks of uncounted mail and eMail.
In addition, United States Representative Ron Paul (R-TX) has introduced
into the House Judiciary and Banking Committees a bill called the Know
Your Customer Sunset Act (HR 516). If passed, this act would prevent
agencies like the FDIC from imposing regulations like the KYC regulations.
Support for this bill is growing very quickly, garnering 40 co-sponsorships,
including influential members like Tom Delay (the Majority Whip) and Judiciary
Committee Chairman Henry Hyde. In addition, Representative Paul has introduced
HR 518, The Bank Secrecy Sunset Act.
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Part Two: Bank Secrecy Act Compliance Manual
The FDIC finally dropped their efforts on the "Know Your Customer"
program, at least as a frontal assault, in the face of stiff opposition from
Congress. Unfortunately, through the vehicle of the "Bank Secrecy Act
Compliance Manual", they have managed to get the vast majority of the
KYC program implemented in nearly 90% of banks.
Assistant Director of
the Federal Reserve Richard Small, has stated publicly that KYC is not dead,
but needs to be "repackaged".
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