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Contact: Amy Inaba


Representative Young Works Against Intrusive Regulations on Banking Customers

Washington, D.C., Feb 5 -

We cannot allow the federal government to monitor our checkbooks

Alaska Congressman Don Young supported introduction of legislation that restores and protects the privacy of banking customers. The Know Your Customer Act was sponsored by Rep. Paul (R-TX).

In December, the Federal Deposit Insurance Corporation (FDIC), Treasury, and the Federal Reserve issued the “Know Your Customer” proposed rule seeking to require financial institutions to design a program that would:

• Determine the identity of the customer
  
• Determine the customer’s source of funds for all transactions
  
• Determine “normal and expected” profile of its customers
  
• Report unusual transactions to regulators as “suspicious”

“The Act will stop federal agencies from implementing overly intrusive regulations that would force financial institutions to monitor customer accounts and transactions. The Know Your Customer rule would go beyond any reasonable policy and turn financial institutions into detective agencies,” said Alaska Representative Don Young.

The Know Your Customer Sunset Act would bar federal agencies from following through on their plans to monitor customer accounts and transactions.

“I am concerned about any efforts that allow the federal government further access to our personal lives. Allowing federal regulators to see our checkbooks is another attempt to erode American citizen’s privacy rights,” said Rep. Young.

Supporters of The Know Your Customer Sunset Act include the American Civil Liberties Union, the American Bankers Association and numerous consumer advocacy groups.