[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[Senate]
[Page 3808]
[From the U.S. Government Publishing Office, www.gpo.gov]




    FEDERAL DEPOSIT INSURANCE CORPORATION'S ``KNOW YOUR CUSTOMER'' 
                               REGULATION

  Mr. KERREY. Mr. President, I voted today in support of the Gramm 
amendment which supports my belief that the FDIC's ``Know Your 
Customer'' regulation should be withdrawn. This vote mirrors my earlier 
action where I had written to FDIC Chairwoman Tanoue asking her to 
withdrawal the regulation.
  While I commend FDIC's effort to identify and crack down on illegal 
activity, I am deeply concerned the ``Know Your Customer'' regulation 
will threaten the financial privacy of Nebraska customers.
  When federal regulators consider any regulation like ``Know Your 
Customer,'' the private relationship between customers and their 
financial institutions should be given the utmost consideration. I 
believe ``Know Your Own Customer'' would severely strain this 
relationship. Customers should feel confident that their financial 
transactions are done in confidence and not subject to uninvited 
searches. Bankers in Nebraska already report large cash transactions, 
violations of federal law and potential money laundering activity 
without invading the privacy of their customers. ``Know Your Customer'' 
would require financial officers to infringe on their customers' 
privacy, damaging public perception of the banking industry.
  On behalf of the many Nebraskans, customers and bankers, who have 
relayed similar concerns with me, I am pleased the United States Senate 
has taken this action. In the meantime, I will remain committed to see 
that FDIC withdraws the ``Know Your Customer'' regulation.

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