NO. R-57. JOINT RESOLUTION RELATING TO PROPOSED FEDERAL INTRUSIONS INTO BANK CUSTOMER PRIVACY RIGHTS.
Offered by: Committee on Commerce.
Whereas, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS) and the Federal Reserve have proposed to issue a new regulation requiring banks to develop and maintain "Know Your Customer" programs, and
Whereas, as proposed, the regulation would require each bank to develop a program designed to determine the identity of its customers, determine its customers' sources of funds, determine the normal and expected transactions of its customers, monitor account activity for transactions that are inconsistent with those normal and expected transactions, and report any transactions of its customers that are suspicious, and
Whereas, in order to carry out the proposed regulation, banks will be forced to probe into the legitimate activities of its customers and into the sensitive private affairs of its customers, and
Whereas, the proposed "Know Your Customer" program would substantially change the relationship between banks and their customers, and
Whereas, the regulation will result in a substantial invasion of privacy and an illegal search in violation of innocent customers' rights under the constitutions of both the United States and Vermont, and
Whereas, the proposed regulation is clearly beyond the scope of authority granted the agencies by Congress, now therefore be it
Resolved by the Senate and House of Representatives:
That the FDIC should not be allowed to issue this "Know Your Customer" regulation, and be it further
Resolved: That the Secretary of State be directed to send a copy of this resolution to the Federal Deposit Insurance Corporation, the Office of the Comptroller of Currency, the Office of Thrift Supervision, the Federal Reserve, the banking committee of the United States House of Representatives, the banking committee of the United States Senate and Vermont's Congressional Delegation.