Pubdate: Thur, 04 Feb 1999 Source: Fresno Bee, The (CA) Copyright: 1999 The Fresno Bee Contact: http://www.fresnobee.com/ MEASURE WOULD HALT 'SNOOPING' BY BANKS Privacy advocates and bankers have complained that every teller could become a cop. Citing complaints that new rules could turn every bank teller into a cop, a Texas lawmaker is proposing legislation aimed at protecting the financial privacy of Americans. The far-reaching legislative package unveiled Wednesday by Republican Rep. Ron Paul would block, among other things, proposed anti-money-laundering rules that would track the habits of bank customers. At least two federal banking agencies are reconsidering the proposed "Know Your Customer" rules in response to the public outcry that started in December. The Federal Deposit Insurance Corp., for example, had received more than 14,000 e-mail messages and letters opposing the proposal as of Friday. Privacy advocates, conservative groups, ordinary people and the nation's bankers themselves have complained that the rules would transform every bank teller into a cop. "We proclaim that American citizens have the right to be free of the snooping, spying, prying eyes of government bureaucrats," Paul told reporters. He said his legislation would "give Americans the peace of mind that comes from knowing that their every financial step is not being filed away and viewed as potentially criminal." Paul said about a dozen lawmakers, including House Republican Whip Tom DeLay of Texas, had agreed to join him as co-sponsors of the bill to stop the "Know Your Customer" rules. But the other two measures in his package -- to repeal the Bank Secrecy Act and to let people see the files on them created by the federal Financial Crimes Enforcement Network -- hadn't attracted any co-sponsors, and legislative prospects were clouded. The Bank Secrecy Act of 1974 obligates banks to report customers' cash transactions of $10,000 or more to law enforcement authorities. Paul said the law has failed to help catch drug dealers, who "are smarter than most bankers." Paul, a physician who is on the House Banking Committee, once ran for president as the Libertarian Party's nominee. His strict constitutionalist beliefs routinely put him at odds with his fellow Republicans. Paul maintains that the "Know Your Customer" rules violate the Fourth Amendment prohibition against unreasonable search and seizure. The proposed regulations would require banks to verify their customers' identities, know where their money comes from and determine their normal pattern of transactions. The current requirements for banks to report any "suspicious" transactions to law enforcement authorities would be expanded. - --- MAP posted-by: Don Beck