The Tyrant is Dead!! The Tyrant is Dead!! R.I.P. "The Know Your Customer" Proposalgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
According to the Los Angeles Times (Business section), the FDIC is withdrawing its proposed "know your customer" rule. But according to www.defend yourprivacy.com an FDIC spokesman said, "We could write a policy statement that still gets a program in place, but takes into account comments. [We could] just give bankers some guidance out there as to what a Know Your Customer program should entail. When our examiners come in to an institution, they'll look for a Know Your Customer program." What bureaucratic arrogance!! After more than 270,000 e-mails, letters, and faxes (99.999%opposed), the tyrants will certainly try again. If people would show the same degree of anger with regard to Y2K lies and deceit, maybe there would be a greater degree of hope, with less fear.
-- Don Chen (DChen@newbie.xxxcom), March 09, 1999
Write it down on a list of "Things to do post-Y2K: reign-in bureacrats." Based on the previous post, in a few years we may find ourselves holding a "New Continental Congress" to discuss what to keep and what to chop away from the US government. Any takers on an amendment to prohibit such "rule by policy" tricks?
-- Wildweasel (email@example.com), March 10, 1999.
- Don Chen (DChen@newbie.com), March 09, 1999 -
LINK please, Don - give the URL
-- Mr. Kennedy (y2kPCfixes@MotivatedSeller.com), March 10, 1999.
Mr. K-- the link in re: the quotation from the FDIC bureaucrat is in the body of the original note: www.defendyourprivacy.com The information was paraphrased from the Los Angeles Times (business section)--again, as noted--otherwise, the commentary is IMHO-does that help?
-- Don Chen (DChen@newbie.xxxcom), March 11, 1999.
(this is a tad long) Just to update everyone about the Know Your Customer regulation's status (as reported by the Libertarian Party):-----BEGIN PGP SIGNED MESSAGE----- ======================================= NEWS FROM THE LIBERTARIAN PARTY 2600 Virginia Avenue, NW, Suite 100 Washington DC 20037 World Wide Web: http://www.lp.org/ ======================================= For release: March 10, 1999 ======================================= For additional information: George Getz, Press Secretary Phone: (202) 333-0008 Ext. 222 E-Mail: 76214.3676@Compuserve.com =======================================
Know Your Customer regulation is wounded -- but is it dead?
WASHINGTON, DC -- A regulation that would have required banks to spy on their customers for the federal government appears to have been squashed -- for the time being, anyway -- thanks in large part to the efforts of the Libertarian Party.
"We have won the first round of the battle against the Know Your Customer regulation," said Steve Dasbach, the party's national director. "But the fight against this dangerous proposal may not be over yet."
On Monday, the head of the Federal Deposit Insurance Corporation announced that "the public has spoken very loudly and clearly." Chairwoman Donna Tanoue said she will urge the FDIC's four-member board to drop the controversial rule at their next meeting on March 23.
The Know Your Customer regulation would have required banks to determine where customers get their money, monitor bank transactions, and report any "unusual activity" to federal law enforcement agencies.
The FDIC backed away from the proposal after being hammered by up to 253,000 e-mail messages, letters, and faxes during its public comment period, which ended on March 8. Of those comments, 171,268 were generated by the Libertarian Party's DefendYourPrivacy.com website.
Up and running since February 17, the site generated an astonishing 8,563 signatures a day on an electronic petition against the regulation -- or 67.7% of all the comments received by the FDIC.
"The success of our DefendYourPrivacy.com website shows that the computer mouse is mightier than the musket, and that the World Wide Web is the political organizing tool of the 21st Century," said Dasbach. "It also shows that cybercitizens, when given information about threats to their privacy, will mobilize to fight those threats and make their voices heard."
The DefendYourPrivacy.com site explained the Know Your Customer regulation; allowed voters to send e-mail comments directly to the FDIC; and let people automatically notify others about the site via e-mail, starting a "chain reaction" that picked up steam as the days passed.
As the tidal wave of comments against Know Your Customer mounted, politicians started deciding that they, too, opposed the regulation.
Last week, by an 88-0 vote, the U.S. Senate expressed "support" for a measure directing the FDIC to drop the proposed rules. But a bill to give that measure the force of law was blocked by Senate Democrats.
Also last week, the House Banking Committee adopted an amendment to a financial services bill that would kill Know Your Customer. However, a broader amendment filed by Congressman Ron Paul (R-TX) that would have prohibited any federal agency from implementing any similar bank spying rule was defeated.
Also, only two of the four agencies that originally sponsored Know Your Customer have said the regulation should be scrapped. While both the FDIC and the Comptroller of the Currency have spoken against the regulation, neither the Office of Thrift Supervision nor the Federal Reserve has taken a public position.
In addition, an FDIC spokesman had stated previously that the agency might withdraw the regulation, but implement Know Your Customer-style requirements as a "policy."
That's why it's too soon to authoritatively state that Know Your Customer is DOA, said Dasbach.
"Know Your Customer is wounded, but it isn't dead yet," he said. "Even if they decide to kill it -- which hasn't happened yet -- the same bureaucrats and politicians who first proposed this dangerous regulation could quietly bring it back after the public outcry has subsided."
That's why Libertarians will stay vigilant, said Dasbach -- and have a back-up plan in place to fight Know Your Customer if and when it comes back.
"Depending on what is announced at the FDIC's March 23 meeting, we are prepared to mount a lobbying campaign in favor of HR 516, a comprehensive financial privacy bill sponsored by Congressman Ron Paul," he said.
HR 516 would "reign in the creeping surveillance state" by prohibiting the FDIC and other federal agencies from implementing Know Your Customer, would repeal other federal banking regulations, and would open up federal financial files to the public.
"Know Your Customer is a disease that threatens our freedom. HR 516 is the cure," said Dasbach. "The LP has already thrown a monkey-wrench into the FDIC's plan to impose its wacky bank spying scheme. With HR 516, we have the opportunity to kill this invasion of privacy permanently."
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-- Bobbi (firstname.lastname@example.org), March 12, 1999.
oops, sorry about that post above! I guess was the wrong tag to use! :-)
Bobbi (got spaces?)
-- Bobbi (email@example.com), March 12, 1999.