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    FOLLOWING IS TEXT OF E-MAIL MESSAGE ON VICTORY AGAINST THE FEDS' "KNOW YOUR CUSTOMER" SCAM


    Good Guys Win One - 135,000 objections to KYC and counting

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    SCAN THIS NEWS 3/4/99

    Good Guys Win One - 135,000 objections to KYC and counting The anti-KYC campaign has been effective

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    'Know Your Customer' dealt serious blow
    Banking Committee approves version of Paul-Campbell Amendment

    WASHINGTON, DC -- In a victory for banking customers and the privacy rights of American citizens, the Committee on Banking and Financial Services on Thursday afternoon approved a version of an amendment to stop the "Know Your Customer" regulations.

    "This is a true victory for our side, those who cherish liberty," said Rep. Paul after the unanimous voice vote. "While we should not recklessly assume the regulators will give up their hopes of 'Know Your Customer'-style invasions on privacy, they have been dealt a serious blow."

    During the committee's work on HR10, the financial modernization legislation, Rep. Paul and Rep. Tom Campbell (R, Calif.), introduced an amendment that would have stopped "Know Your Customer" and removed the ability of regulators to ever make such rules in the future. That exact wording was rejected, but an amendment to the amendment was offered by Rep. Bob Barr (R, Ga.), making it apply only to the currently proposed "Know Your Customer" regulations. The revised version of the Paul-Campbell Amendment passed by a voice vote.

    "We cannot assume the regulators will give up, but we now have the banking committee on record opposing these privacy grabs," said Rep. Paul. "It is necessary to repeal the authority of regulators to implement these regulations, which is why I will continue to press for passage of my three measures dealing with financial privacy."

    Rep. Paul was the first Member of Congress to speak out against these regulations, as well as the first to introduce legislation aimed at stopping "Know Your Customer" and removing the power of regulators to propagate such measures in the future. Rep. Paul has introduced the Know Your Customer Sunset Act (HR516), the FinCen Public Accountability Act (HR517), and the Bank Secrecy Act Sunset Act (HR518).

    "The American public, bankers and customers, has spoken loud and clear on this issue -- they do not want big-government snooping in their bank accounts," said Rep. Paul, referring to the more than 135,000 opposition comments made to the FDIC, one of four agencies proposing the rules. "These regulations would have thrown the Fourth and Fifth Amendments to the wind, and the American people simply will not stand for that."

    Dr. Paul thanked the numerous individuals, organizations and groups that have stood against the intrusive anti-privacy measures.

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    [The following post is from Congressman Barrs office]

    -----Original Message-----
    From: Jim Groom
    Sent: Thursday, March 04, 1999
    Subject: KYC

    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

    BARR KILLS "KNOW YOUR CUSTOMER" REGULATION BARR-BAKER AMENDMENT WILL PROTECT PRIVACY

    WASHINGTON, DC -- U.S. Representatives Bob Barr (GA-7) and Richard Baker (R-AL) successfully offered an amendment to legislation in the House Banking and Financial Services Committee today that will eliminate proposed "Know Your Customer" regulations. Barr's amendment passed as a substitute for an amendment offered by Rep. Ron Paul (R-TX) that would have failed.

    "These regulations propose requiring banks to compile detailed information on the financial transactions of their customers without any regard to whether those customers are suspected of criminal wrongdoing. This information then becomes your personal profile. If that profile simply indicates a recent transaction is "out of character," your bank is forced to report your finances to the government," said Barr.

    "It is ludicrous to assume that profiling the salary deposits, ATM fees, and mortgage payments of millions of Americans will have a significant impact on the activities of criminals. These regulations assume that millions of law-abiding Americans are potential criminals, simply because they have a checking account. Existing law already provides more than adequate authority to fight money- laundering," Barr continued.

    "Our amendment will stop this proposal dead in its tracks by directly prohibiting the federal government from implementing it. This is a victory for civil libertarians and privacy advocates everywhere, and a resounding defeat for those who want a Big Brother government to snoop in every aspect of our lives," Barr concluded.

    Barr, a former United States Attorney, serves on the House Banking, Judiciary, and Government Reform Committees. Earlier today, he also testified in opposition to the proposed regulations before another hearing by a Judiciary subcommittee.


    For additional information, please visit our website at
    http://www.house.gov/barr

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    Thanks to Michele believer@telepath.com for Ron Paul's message (originating with Norman Singleton fingerprint@networkusa.org.Norman.Singleton@mail.house.gov), and Jim Groom for the post from Bob Barr's office.

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