[Congressional Record Volume 145, Number 47 (Wednesday, March 24, 1999)]
[Extensions of Remarks]
[Page E544]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E544]]
                           KNOW YOUR CUSTOMER

                                 ______
                                 

                            HON. RON PACKARD

                             of california

                    in the house of representatives

                       Wednesday, March 24, 1999

  Mr. PACKARD. Mr. Speaker, I would like to applaud the efforts of 
citizens in my district and across the country. Thanks to their 
unending efforts, the Federal Deposit Insurance Corporation (FDIC) 
recently retracted their proposed ``Know Your Customer'' rule. This 
proposal would have required banks to monitor their customers and snoop 
out information for federal government files.
  According to the FDIC, the intent of the ``Know Your Customer;'' rule 
was to ensure that banks and savings institutions have policies and 
procedures for screening transactions tied to criminal activities, such 
as money laundering or drug trafficking. In reality, this legislation 
would have created an Orwellian system of government. Our constituents 
recognized this and voiced their strong opposition to it.
  We should not forget that Americans have the right to expect privacy 
protections. The fact is, under the ``Know Your Customer'' rule, banks 
would have been required to track money sources and report all ``out-
of-the-oridinary'' transactions to the federal government. In other 
words, this would have allowed the banks and our government the right 
to snoop in our personal information. That is wrong! Good business 
practices should already allow banks to know their customers.
  Mr. Speaker, I would like to thank American citizens for 
strengthening our democratic system of government by loudly voicing 
their opposition to this rule. ``Know Your Customer'' would have been a 
clear invasion of privacy of all citizens and I am pleased it has been 
retracted.

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