-Caveat Lector-
from:
http://www.wired.com/news/news/politics/story/18311.html
<A HREF="http://www.wired.com/news/news/politics/story/18311.html">Political
News from Wired News</A>
-----
Anti-Privacy Bank Rules Crushed
by Declan McCullagh
4:45 p.m. 5.Mar.99.PST
The US Senate on Friday took the first step toward derailing a
controversial government regulation that will require banks to monitor
every transaction their customers make.
By an 88 to 0 vote, the Senate approved a change to an education bill
being debated. The amendment blocks banking regulators from proceeding
with the so-called Know Your Customer plan.
"If you ever wondered whatever happened to the people in the former
Soviet Union who used to run things there and now are permanently out of
work, the answer is they're all in the Clinton administration, and
they're running the banking authorities of this country," said Phil
Gramm, a Texas Republican who chairs the Banking Committee, in a speech
on the Senate floor.
Senate Democrats first blocked Gramm's standalone bill that would have
repealed Know Your Customer, but then joined their GOP counterparts in a
unanimous vote to add the amendment to the education bill.
Under Know Your Customer, banks will be required to tell the Feds about
transactions that aren't "normal and expected" for a particular
customer, based on a profile of that person.
Over 140,000 irate Americans have complained about the proposal in a
comment period that ends Monday.
"We're hoping that Know Your Customer will be over and done with on
Monday and the regulators will see the error of their ways," said
Christi Harlan, a spokesman for Gramm. Harlan said the Senate planned to
continue debating the education bill next week.
Agency officials have responded to the unprecedented storm of outrage --
proposed regulations generally draw few public comments -- by
backpedaling.
On Thursday, the comptroller of the currency said he wants to ditch it.
"I firmly believe that any marginal advantages for law enforcement in
this proposal are strongly outweighed by its potential for inflicting
lasting damage on our banking system," John Hawke told a House Judiciary
subcommittee.
The Federal Reserve, the Office of Thrift Supervision, the Federal
Deposit Insurance Corporation, and the Office of the Comptroller of the
Currency simultaneously introduced the plan last year.
Also on Thursday, the House Banking Committee voted to dump Know Your
Customer.
Unless the full Senate and the full House vote to block it or
executive-branch officials change their minds, the regulation will take
effect early next year.
But on Thursday, critics told Congress that just stopping Know Your
Customer isn't good enough.
"If Congress stops there and fails to repeal or substantially modify the
statutory basis for the proposed Know Your Customer regulations or to
strengthen the Right to Financial Privacy Act, it will itself have
perpetrated a massive deception on the 100,000 people who spoke out
against the Know Your Customer regulations," said Greg Nojeim, ACLU
legislative counsel.
When a bank detects any "suspicious activity," current regulations
already require that the company complete a five-page report that
includes the customer's name, address, Social Security number, driver's
license or passport number, date of birth, and information about the
transaction.
Under the existing rules, banks are required to telephone law
enforcement "in situations involving violations requiring immediate
attention."
But Know Your Customer would compel banks to also identify their
customers, determine their source of funds, and profile them to measure
account activity against historical patterns.
Representative Ron Paul, a Texas Republican, has introduced bills to
repeal current regulations as well.
Related Wired Links:
Bank Plan May be Doomed
4.Mar.99
Foes Target 'Know Your Customer'
20.Jan.99
Banking with Big Brother
10.Dec.98
Copyright © 1994-99 Wired Digital Inc. All rights reserved.
DECLARATION & DISCLAIMER
==========
CTRL is a discussion and informational exchange list. Proselyzting propagandic
screeds are not allowed. Substance—not soapboxing! These are sordid matters
and 'conspiracy theory', with its many half-truths, misdirections and outright
frauds is used politically by different groups with major and minor effects
spread throughout the spectrum of time and thought. That being said, CTRL
gives no endorsement to the validity of posts, and always suggests to readers;
be wary of what you read. CTRL gives no credeence to Holocaust denial and
nazi's need not apply.
Let us please be civil and as always, Caveat Lector.
========================================================================
Archives Available at:
http://home.ease.lsoft.com/archives/CTRL.html
http:[EMAIL PROTECTED]/
========================================================================
To subscribe to Conspiracy Theory Research List[CTRL] send email:
SUBSCRIBE CTRL [to:] [EMAIL PROTECTED]
To UNsubscribe to Conspiracy Theory Research List[CTRL] send email:
SIGNOFF CTRL [to:] [EMAIL PROTECTED]
Om
