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Alert/"Know Your Customer" is back!

July 20, 2000

Dear friend of liberty,

"Know Your Customer" monitoring of your bank account is back!

Politicians, federal bureaucrats and institutional elites are, once
again, working to make your local bank teller their snitch.

Two years ago, Congress passed a bill directing federal banking
regulators to issue the infamous "Know Your Customer" regulations.
Those regulations would have required your local bank teller to:
1. Determine your identity  - not for the bank's purposes, but for the
government's purposes.
2. Determine the source of your deposit.
3. Determine your profile of "regular and expected" transactions that is
based, not on your actual banking history, but on what your banking
history should be according to racial, economic, geographic guidelines.
4. Report your "suspicious" transactions to the federal government.
Your "suspicious" transactions will be those that don't fit with the
government's profile of "regular and expected" transactions for you.

The opposition to "Know Your Customer" was overwhelming.  Over 300,000
Americans from coast-to-coast told the banking regulators in Washington
to stop "Know Your Customer" regulations.  The federal bureaucrats did
back down last year - but they're back.

"Know Your Customer" (version 2) regulations are included in H.R. 3886.
H.R. 3886 will implement the "Know Your Customer" regulations for
international transactions.  In addition, H.R. 3886 will give the U.S.
treasury department (IRS, Customs Service, Secret Service) the power to:
1. Make new requirements on financial institutions at their discretion.
2. Prohibit whole classes of international transactions at their
3. Prohibit international transactions with certain financial
institutions at their discretion.
4. Prohibit international transactions with certain countries at their

H.R. 3886 will decimate privacy between you and the financial
institutions with which you do business.  Politicians, federal
bureaucrats and institutional elites desperately want H.R. 3886 to
become law.  They will tell you not to worry.  "These 'Know Your
Customer' regulations will only be used to catch criminals.  These
regulations will only be used for international transactions."  The
people who are telling us not to worry today are the same people who
tried last year to quietly pass regulations that would have forced your
local bank teller to become a government snitch.

There are only six weeks of legislative business remaining this year.
During those six weeks, many bills will be quietly pushed through the
U.S. House in the hope of not being noticed during the year-end flurry
of votes.  H.R. 3886 is one of those bills.

If we fall for "Know Your Customer" for international transactions
today, we'll have to suffer from "Know Your Customer" for local
transactions tomorrow.  That's what they were after in the first place.

Please urge your U.S. representative to vote against H.R. 3886.  You can
send an E-mail by going to http://www.libertystudy.org and click on
Communicate at the top of the page.  Please tell your representative to
vote "no" on H.R. 3886.  To call your representative, dial the Capitol
switchboard at 202-224-3121.  Also, tell your local bank that you are
opposed to H.R. 3886 and ask them to oppose it as well.  Last year, many
banks helped stop "Know Your Customer" (version 1) after they heard from
their customers.

Kent Snyder
Liberty Study Committee


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