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HR 428 - "Know Your Customer" regulations; urge withdrawal from consideration

Parrish, Larry (Butch) J (144th)	Coleman, Terry L (142nd)	Walker, Larry (141st)
Smyre, Calvin (136th)	Skipper, Jimmy (137th)	Buck, III, Thomas B (135th)

Status Summary	HC:	B&B	SC:		FR:	03/03/99	LA:	03/09/99	H - Passed/Adopted

First Reader Summary

A RESOLUTION urging the Federal Deposit Insurance Corporation, the Federal Reserve Bank, the Office of the Comptroller General, and the Office of Thrift Supervision to withdraw the proposed "Know Your Customer" regulations from consideration; and for other purposes.

HR 428                                             LC 24 1467 
 
 
 
 
 
 
                             A RESOLUTION 
 
  1- 1  Urging the Federal Deposit Insurance Corporation, the 
  1- 2  Federal Reserve Bank, the Office of the Comptroller General, 
  1- 3  and the Office of Thrift Supervision to withdraw the 
  1- 4  proposed "Know Your Customer" regulations from 
  1- 5  consideration; and for other purposes. 
 
  1- 6  WHEREAS, the Federal Deposit Insurance Corporation, the 
  1- 7  Federal Reserve Bank, the Office of the Comptroller General, 
  1- 8  and the Office of Thrift Supervision are all considering 
  1- 9  proposed regulations entitled "Know Your Customer"; and 
 
  1-10  WHEREAS, the "Know Your Customer" regulations would require 
  1-11  banks and other financial institutions to create customer 
  1-12  profiles on all of their customers which would monitor and 
  1-13  define the parameters of normal activity on an account. Then 
  1-14  if a deposit or withdrawal was made which did not fit into 
  1-15  that profile, the bank would have to determine where the 
  1-16  customer got the funds in question and report the activity 
  1-17  in question to the appropriate federal regulatory authority; 
  1-18  and 
 
  1-19  WHEREAS, the proposed "Know Your Customer" regulations would 
  1-20  invade a bank customer's privacy in a way and to an extent 
  1-21  not reasonably calculated to further any legitimate or 
  1-22  compelling governmental interest; and 
 
  1-23  WHEREAS, there are already sufficient regulations in place 
  1-24  to ensure that financial crimes are detected, and the "Know 
  1-25  Your Customer" regulations are not needed and are in fact 
  1-26  dangerous to a society where privacy is valued. 
 
  1-27  NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF 
  1-28  REPRESENTATIVES that the members of this body express their 
  1-29  concern over the adverse effect that these proposed 
  1-30  regulations would have and urge the Federal Deposit 
  1-31  Insurance Corporation, the Federal Reserve Bank, the Office 
  1-32  of the Comptroller General, and the Office of Thrift 
  1-33  Supervision to withdraw the proposed "Know Your Customer" 
  1-34  regulations from consideration. 
 
  1-35  BE IT FURTHER RESOLVED that the Clerk of the House of 
  1-36  Representatives is authorized and directed to transmit 
 
 
 
                                 -1- 
 
 
 
  2- 1  appropriate copies of this resolution to the directors of 
  2- 2  the Federal Deposit Insurance Corporation, the Federal 
  2- 3  Reserve Bank, the Office of the Comptroller General, and the 
  2- 4  Office of Thrift Supervision and to each member of the 
  2- 5  Georgia Congressional delegation. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -2-