HR 516 IH

To prohibit the Secretary of the Treasury and the Federal banking agencies from implementing `know your customer' regulations which overburden financial institutions and invade the privacy of United States citizens.

February 3, 1999

Mr. PAUL (for himself, Mr. ROGAN, Mr. UPTON, Mr. BURTON of Indiana, Mr. NETHERCUTT, Mr. TAYLOR of North Carolina, Mr. LATHAM, Mr. YOUNG of Alaska, Mr. SKEEN, Mr. DELAY, Mr. CAMPBELL, and Mr. HALL of Texas) introduced the following bill; which was referred to the Committee on Banking and Financial Services

To prohibit the Secretary of the Treasury and the Federal banking agencies from implementing `know your customer' regulations which overburden financial institutions and invade the privacy of United States citizens.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Know Your Customer' Sunset Act'.

SEC. 2. IMMEDIATE TERMINATION OF `KNOW YOUR CUSTOMER' REGULATIONS.

Any regulation prescribed by the Secretary of the Treasury or any Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act) under subchapter II or III of chapter 53 of title 31, United States Code, chapter 2 of Public Law 91-508, section 21 of the Federal Deposit Insurance Act, or any other provision of Federal law, that has the effect of requiring a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) or any other private entity--

(1) to monitor the account of any customer of the institution or entity; or

(2) to obtain information concerning any person in connection with a financial transaction at the institution or entity, including the source of any funds involved in the transaction,

(commonly referred to as `know your customer' regulations) shall cease to be effective as of the date of the enactment of this Act and no such regulation may be prescribed after such date.

END