"Know Your Customer" Banking Regulations:
Big Brother Is Watching

Posted March 5, 1999

In early December 1998, the Federal Deposit Insurance Corporation (FDIC) announced new regulations for banks to implement to help eliminate money laundering schemes and other forms of financial fraud. However, these proposed regulations, called "Know Your Customer," represent a frightening invasion by the Clinton Administration into our personal privacy. These regulations treat each citizen as a criminal who needs to be watched!


  • For the past several years, the "Know Your Customer" (KYC) program has been carried out on a voluntary basis by a number of banks. Under the new proposed KYC regulations, all FDIC member banks as well as non-member banks will be required to implement the KYC regulations for every account holder.

  • The details of the "Know Your Customer" program include the following:

    a) Monitoring of all account activities will be required.

    b) The account holders must reveal all sources of income. The banks will use the information to "profile" every customer to ascertain "normal" and "expected" transactions.

    c) A limit will be placed by the bank on the amount a customer can withdraw per transaction so there will be no deviation from the "expected" pattern.

    d) When deviations do occur, the bank is required to file a "suspicious activity" report to FinCen (Financial Crimes Enforcement Network). The account holder will not be informed when this report in filed and this report will be shared with other agencies.

    e) Identification will be mandatory for every banking transaction such as deposits and withdrawals. Anyone refusing to show identification will not be allowed to conduct business at that bank.

  • The "Know Your Customer" proposal was created by the Financial Action Task Force (FATF), a Paris-based anti-money laundering organization. FATF has drafted reports, which state that compliance with KYC requirements by member organizations (26 countries and two international organizations) is "voluntary." However, non-compliance will result in being ostracized from the global banking community. Likewise bank customers who do not "volunteer" into the KYC program will be denied access to all banking-related services. And, for the bankers who won't comply with KYC rules: fines for individuals and the possibility of imprisonment.

  • Rep. Ron Paul (R-TX) has introduced bills to stop this invasion of privacy from our own as well as foreign governments. Rep. Paul has about 40 co-sponsors for the bills. Hopefully, the bills will make it out of committee and onto the floor for a vote soon.

  • The FDIC and other appropriate agencies will take comments from the public until March 8, 1999. There have been more than 50,000 comments already. Just over two dozen have been in favor of the regulations. The addresses, fax numbers and email addresses (where applicable) for each of the agencies are listed below:

    Federal Deposit Insurance Corporation
    Robert E. Feldman
    Executive Secretary
    Attention: Comments/OES
    Federal Deposit Insurance Corporation
    550 17th Street, NW
    Washington, DC 20429
    OR Fax comments to: 202-898-3838
    OR email comments to: comments@fdic.gov

    Federal Reserve System
    Jennifer J. Johnson
    Board of Governors of the Federal Reserve System
    20th and Constitution Avenue, NW
    Washington, DC 20551
    Attention: Docket No. R-1019

    Department of the Treasury
    Manager, Dissemination Branch
    Information Management and Services Division
    Office of Thrift Supervision
    1700 G Street, NW
    Washington, DC 20552
    Attention: Docket No. 98-114
    OR Fax comments to: 202-906-7755
    OR email comments to: public.info@ots.treas.gov

    Department of the Treasury
    Communications Division
    Office of the Comptroller of the Currency
    250 E Street, SW
    Washington, DC 20219
    Attention: Docket No. 98-15
    OR Fax comments to: 202-874-5274
    OR email comments to: regs.comments@occ.treas.gov

Please Join With Us In Agreeing Prayer:

  • ALMIGHTY GOD, we thank you that you have REVEALED this wicked plan to your servants. Oh, let the wickedness of the wicked come to an end, but establish the just (Ps 7:9; Mt 10:26; 1 Cor 2:10).

  • Cause Rep. Paul to have VICTORY with his legislation to stop this evil scheme. Hear Your remnant as they CRY OUT for JUSTICE to prevail (Ps 34:15; 43:all; 138:3; Lk 17:10;Heb 3:14; 10:35).

  • LORD, we ask You to CONFUSE & CONFOUND the efforts of those who are spearheading these machinations. DISRUPT the efforts and plans of those who want a Godless world financial system (Gen 11:4-9; Ps 2:all; Jer 23:19-20).

  • And may all things be done to GLORIFY Your Name. AMEN!


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