In a nutshell, “Board staff has consistently maintained that a bank should
take the necessary and reasonable steps to determine the true identity
of its customers--that is, "know" its customers.
It should also determine its customers' sources of funds; determine,
understand and monitor the normal and expected transactions of its
customers; and report appropriately any transactions of its customers
that are determined to be unusual or suspicious.” Taken from: (BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM, DATE: September 28, 1998
TO: Board of Governors, FROM: Division of Banking Supervision and Regulation
(Messrs. Biern and Small),SUBJECT: Proposed "Know Your Customer" Regulation)
A justification for the increased knowledge of customer’s is many think it is imperative that
banks establish they are dealing with a legitimate person.
Hm, wonder what that will do for politicians who obtain funds from sources than their
stated salaries? Will the bank try to determine where the funds of the person come from or,
if taking a large deposit, question its source, or just go ahead and turn them in as a suspect
in drug dealing?
Guess that would make it sort of interesting, wouldn't it?
But, you know what, Ladies and Gentlemen? If the legislation does become law, I think
you could safely wager politicians' bank accounts will not, repeat, not, be monitored nor
large deposits or withdrawals questions. Their rights to privacy will remain
intact.
