Alert/"Know Your Customer"
||July 20, 2000
Dear friend of liberty,
"Know Your Customer" monitoring of your bank
account is back!
Politicians, federal bureaucrats and institutional elites
again, working to make your local bank teller their snitch.
Two years ago, Congress passed a bill directing federal
regulators to issue the infamous "Know Your
Those regulations would have required your local bank teller
1. Determine your identity - not for the bank's
purposes, but for the
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
history should be according to racial, economic, geographic
4. Report your "suspicious" transactions to the
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
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"
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
2. Prohibit whole classes of international transactions at
3. Prohibit international transactions with certain
institutions at their discretion.
4. Prohibit international transactions with certain
countries at their
H.R. 3886 will decimate privacy between you and the
institutions with which you do business. Politicians,
bureaucrats and institutional elites desperately want H.R.
become law. They will tell you not to worry.
"These 'Know Your
Customer' regulations will only be used to catch criminals.
regulations will only be used for international
people who are telling us not to worry today are the same
tried last year to quietly pass regulations that would have
local bank teller to become a government snitch.
There are only six weeks of legislative business remaining
During those six weeks, many bills will be quietly pushed
U.S. House in the hope of not being noticed during the
of votes. H.R. 3886 is one of those bills.
If we fall for "Know Your Customer" for
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
Communicate at the top of the page. Please tell your
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
Liberty Study Committee