[Congressional Record (Bound Edition), Volume 145 (1999), Part 2]
[Extensions of Remarks]
[Page 1772]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCTION OF THE AMERICAN FINANCIAL INSTITUTIONS' PRIVACY ACT OF 
                                  1999

                                 ______
                                 

                             HON. BOB BARR

                               of georgia

                    in the house of representatives

                      Wednesday, February 3, 1999

  Mr. BARR of Georgia. Mr. Speaker, I rise today to introduce the 
American Financial Institutions' Privacy Act of 1999.
  This legislation delays the ``Know Your Customer'' regulations 
proposed by the federal banking agencies until authorized by Congress, 
thereby protecting the privacy rights of American citizens which would 
otherwise be infringed by these regulations.
  In addition, this bill requires agencies to complete a comprehensive 
study on various economic and privacy issues, which would be submitted 
to the United States Congress for its review and consent. Only by 
congressional authorization, will additional ``Know Your Customer'' 
regulations be permitted to go into effect.
  America's strength has always derived from economic freedom; yet 
modern America is replete with proposed laws and regulations designed 
to make this country anything but free.
  One such plan proposed by the federal banking agencies would seek to 
expand provisions included in the Bank Secrecy Act of 1970, called 
``Know Your Customer.'' Under current law, all cash transactions over 
$10,000, or over $5,000 if ``suspicious'' activity is suspected, must 
be reported to the appropriate banking regulator. In addition, the 
banks must maintain a record of basic information about each customer 
(Social Security Number, birth date, occupation, and home and work 
telephone numbers) in which to identify and track each customer's 
banking activity. These regulations are designed to attack money 
laundering.
  But, alas, this is not enough. The regulators want your bank to have 
in its database even more intimate and personal information about every 
banking customer. They want your bank to become ``private detective 
agencies''--creating a profile on each and every customer. In your 
``new'' profile will be information on where you obtained your funds, 
what the bank considers to be normal and expected transactions for you, 
and a mechanism by which the banks monitor activity for transactions 
that differ from this ``profile''. Any activity that falls outside the 
parameters of a customer's ``profile'' would trigger an alert to law 
enforcement.
  The bank regulators want to sell this program to the American people 
as an initiative to battle the evils of terrorism, drug trafficking, 
and other criminal activity. But, Mr. Speaker, these proposed ``Know 
Your Customer'' regulations are a blatant infringement on American 
citizen's civil liberties. These proposed regulations are nothing but 
intrusive, forceful, and unnecessary.
  This is another example of the federal government invoking ``Big 
Brother'' to reduce American citizen's private and personal lives. 
Under authority of present law, the government has complied over 177 
million currency transaction reports (CTRs) filed in less than ten 
years. These laws have met with very little success.
  It is not the role of these agencies to seize the individual rights 
of citizens. That is why I have introduced the American Financial 
Institutions' Privacy Act of 1999, to allow the regulators the 
opportunity to re-think the ramifications these ``Know Your Customer'' 
regulations will have on the economy and the privacy of the American 
people. This legislation is narrowly crafted, precisely focused, and 
does not repeal existing tools for identifying true money launderers.
  Mr. Speaker, Majority Whip Tom DeLay, Chairman Richard Baker, of the 
Subcommittee on Capital Markets, Securities and Government Sponsored 
Enterprises, Congressmen Saxby Chambliss, and Tom Campbell have all 
decided to be original cosponsors. I urge my colleagues to join me in 
stopping yet another abuse of power by the Federal Government and 
simultaneously helping to better understand the loopholes in our 
current law that allow money launderers to continue their deceptive 
practices.
  I call on my colleagues to support the American Financial 
Institutions' Privacy Act of 1999.

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