Date: Wed, 16 Dec 1998 14:05:20 -0800 (PST) From: jd@scn.org (SCN User) To: local-computer-activists@scn.org Subject: Banking with Big Brother - letter Reply-To: jd@scn.org Sender: owner-local-computer-activists@scn.org One person's response to Know Your Customer regulations... ********* From: "Susan Lorenz" To: , Subject: Re: Banking with Big Brother Date: Mon, 14 Dec 1998 11:34:09 -0700 Here is a copy of the letter I just sent to the Office of Thrift Supervision, the FDIC, and the FED. Susan Lorenz Sirs and Madams: I read with interest in the Federal Register (7 December 1998) that you are proposing substantial changes in the privacy of banking transactions. Specifically, I understand that you are proposing that banks institute a "Know Your Customer" Program that is substantially as follows: As proposed, the regulation would require each nonmember bank to develop a program designed to determine the identity of its customers; determine its customers source of funds; determine the normal and expected transactions of its customers; monitor account activity for transactions that are inconsistent with those normal and expected transactions; and report any transactions of its customers that are determined to be suspicious, in accordance with the FDIC s existing suspicious activity reporting regulation. By requiring insured nonmember banks to determine the identity of their customers, as well as to obtain knowledge regarding the legitimate activities of their customers, the proposed regulation will reduce the likelihood that insured nonmember banks will become unwitting participants in illicit activities conducted or attempted by their customers. This, Sirs and Madams, is an OUTRAGE! A recent article, I think, describes it well: This is the largest invasion of privacy in banking history. It is the equivalent of a continuous roadblock in which the police search every car and every person every day. Only this regulation is technologically worse, for it will create computerized profiles of individuals that will sweep suspects into lists of suspicious characters, and from there into criminal courts, automatically. Now, I understand that the stated purpose of this proposed regulation is to prevent "illicit activities" from being conducted in the Nation s banks, and I favor the prevention of illicit activities. And, there is a limit to how much invasion of privacy I will tolerate in order to prevent alleged illicit activities. I think that many of my fellow Americans will agree with me. We, for instance, are willing to tolerate inconveniences such as metal detectors and luggage searches at airports in an effort to prevent hijacking and terrorism. I strongly doubt, however, that we would be willing to tolerate a strip search of every passenger prior to every flight, and this is what the proposed regulation amounts to. I am a law-abiding citizen, and I am wearying of the ever-increasing intrusions into my private life. Please withdraw the proposed regulation. I am forwarding a copy of this letter to my representatives in Congress. > > -----Original Message----- > From: John Shaver <shaverj@theriver.com> > To: Susan (river) Lorenz <slorenz@theriver.com> > Date: Monday, December 14, 1998 7:48 AM > Subject: Re: Banking with Big Brother > > > > Nev Dull wrote: >> >> Forwarded-by: Roland Grefer >> <btirg@ui.uis.doleta.gov> >> Forwarded-by: Declan McCullagh <declan@well.com> >> >> http://www.wired.com/news/news/politics/story/16749.html > * * * * * * * * * * * * * * From the Listowner * * * * * * * * * * * * . To unsubscribe from this list, send a message to: majordomo@scn.org In the body of the message, type: unsubscribe local-computer-activists END