I just saw an excellent summary of the "Know Your Customer" issue in Wired magazine. A must-read if this subject interests you.

http://www.wired.com/news/news/politics/story/16749.html

"Banking with Big Brother" by Declan McCullagh.

-- Kevin (mixesmusic@worldnet.att.net), December 14, 1998

Answers

Good Link. Declan McCullagh has posted here recently about this subject. I was surprised to learn that the proposed rules do not apply to credit unions. One good thing, the fact that Congressman Ron Paul, (R - Texas) who is on the House Banking committee, plans to try and stop KYC with legislation early next year.

-- Rob Michaels (sonofdust@net.com), December 14, 1998.

Kevin .. thanks for the heads-up. :)
 
Dan


-- Dan (DanTCC@Yahoo.com), December 14, 1998.

Note, As written, the rules will not apply to credit unions.

Diane

-- Diane J. Squire (sacredspaces@yahoo.com), December 14, 1998.

Aleska and ....I can never remember her husband's name... was calling for civil disobedience regarding KYC. So let's all switch to credit unions, and give that as the reason!

What a crazy riot that would be!

-- Lisa (not@today.com), December 14, 1998.

This is so laughable. Corporate America and the Federal Reserve want to go "cashless", yet they are doing everything possible to destroy the privacy needed to allow a cashless system flourish.

Perhaps they believe a cashless system is inevitable -- might as well cut to the chase and get their snooping well established and "legal", thinking: "Who can stop us, now?"

Or do they fear the cashless society? Have they created a monster they cannot control? Are they now attempting to regain that control through yet another abrogation of Constitutional Right? Are Y2k transactions causing an unanticipated loss of control?

They can pass all the over-reaching laws they wish, it doesn't make them Constitutional. America IS freedom (or it is supposed to be). That's the ONLY thing that makes this country and its system of government worth defending!

Before these busybodies can determine whether the "customer" has changed his "pattern", the customer must first establish a pattern -- don't establish any pattern. (Of course not having a "pattern" might be considered grounds "investigation", especially if most of the "good party members" do and you don't):

Change your bank every six months or so -- unless they make this "illegal"

Bank at two or three banks and occasionally switch funds among them -- unless they make this "illegal"

Set up a series of international bank accounts and see if you can move a borrowed penny around the world. You can? Great! Now, how fast can you make it go? Wheee, I'm a leveraged international hedge fund!! -- unless they make this "illegal"

Pay for everything you can with cash -- unless they make this "illegal"

Barter whenever possible, including the use of gold and silver coins -- unless they make this "illegal"

Move all your banking to offshore, non-participating banks, just like the ones used by the actual drug dealers they're pretending to be doing this for -- unless they make this "illegal"

Quit buying "stuff", most of it's useless consumer junk anyway -- unless they make this "illegal"

Quit working and go on welfare. That way there is no doubt where your money is coming from -- unless they make this "illegal"

Quit working and don't go on welfare. Drop out of the system completely, live in a dumpster or in Montana or a in dumpster in Montana -- unless they make this "illegal"

Withdraw six month's cash at a time, then draw cash everyday for two weeks, then don't draw any for a month. Hold a paycheck every now and then, and deposit two or three at a time. Mix in some cash with the deposit. Then don't deposit anything for a couple of months -- unless they make this "illegal"

Close all direct withdrawals and deposits (they're too consistent) -- unless they make this "illegal"

Rarely write checks, or write 30 at once a couple of times a year -- unless they make this "illegal"

Quit using credit cards unless absolutely necessary. Have two or three cards and use each one maybe once or twice a year -- unless they make this "illegal"

Move to another country that isn't so damn nosey! -- unless they make this "illegal"

If they make most of the above "illegal", congratulations, you're living in Nazi Germany!!

-- Nathan (nospam@all.com), December 14, 1998.

Great post Nathan - I like the way you think! I plan on a little fun and games too:)

-- Andy (2000EOD@prodigy.net), December 14, 1998.

Gary has a link today called: Bank Regulators Receive Protests over Privacy Invasion. He writes (in part):

"The simultaneous public announcements in the Federal Register (Dec. 11) by U.S. bank regulators have created a large backlash from the public. The regulators find that the people don't like computerized snooping. The regulators will ignore all such protests unless Congress gets involved. If Congress starts snooping the snoopers, then the bureaucrats may take notice. FOX MARKET WIRE (Dec. 10) The FDIC had received 2,700 e-mails and letters opposing the proposal, agency spokesman David Barr said. Among the other banking agencies involved in the proposed rules, the Office of the Comptroller of the Currency had received 130 to 140 letters, the Office of Thrift Supervision had gotten around 100 e-mails and 150 letters, and the Federal Reserve (which does not take e-mail) had gotten 150 or so letters.

-- Rob Michaels (sonofdust@net.com), December 14, 1998.