From: DrErebus@AOL.COM Subject: [CTRL] Feds And FDIC To Monitor All Your Personal Financial Activities Date: Sun, 6 Dec 1998 10:11:25 EST To: CTRL@LISTSERV.AOL.COM -Caveat Lector- Feds And FDIC To Monitor All Your Personal Financial Activities 12-1-98 The following is direct quote from the first page of FDIC document (6174-01) (12 CFR Part 326) Notice of proposed rulemaking. "SUMMARY: The FDIC is proposing to issue a regulation requiring insured nonmember banks to adopt and maintain "Know Your Customer" programs. As proposed, the regulation would require each nonmember 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 determined to be suspicious, in accordance with the FDIC's existing suspicious activity reporting regulation. ---" The things to be very concerned about in this case are the PROFILE PARAMETERS that in turn define the various limits that when exceed, qualify as an exception to the norm and thus must be reported to another federal agency, as a suspicious transaction. There is virtually no limit to the number or type of profile parameters that can be established. For example, is the customer an 8 foot tall white male weighing in excess of 400 pounds or is the customer a four foot tall black female weighing less than 90 pounds. The question or questions (and there are many questions) then becomes, who will be responsible for establishing, defining and controlling the limitless number of possible profile parameters? Who will be responsible for adding, changing and deleting established profile parameters? Who will be responsible for insuring that this awesome and massive capability will not be misused and abused by the various departments of the Federal Government. In other words, is the 8 foot tall white male an exception to the norm or is the 4 foot tall black female the exception or, are both the upper limit and the lower limit considered as an exception to the norm. How about all those in between? As noted in the quoted SUMMARY of the document identified above, the "key operative statements" are as follows; 1. Identify its customers. 2. Determine its customers' source of funds. 3. Determine the normal and expected transactions of its customers. 4. Monitor account activity for transactions that are inconsistent with those normal and expected transactions. 5. Report any transactions of its customers that are determined to be suspicious ---. Before we briefly examine the five individual requirements noted above, and so that you will understand where"I" am coming from, please be aware of the fact that, in addition to being a Baptist Preacher, I have been a Data Processing Systems Analyst for some 48+ years. At least half of that time was spent working for the Federal Government, designing and installing total Data Processing Facilities, from the Presidents Battle Staff, to the Congress, to the Department of defense, to the local Church name and address data base. I have written and taught several college courses: (a) Management of Data Processing Facilities and (b) Systems Analysis. One of the first things that I always tell the new students in my Systems Analysis class is "In the field of electronic data processing, your only limitation is you own imagination. If you can rationalize it in your mind, 'electronic' data processing can do it." Now, given that background and qualifications let me tell you, in no uncertain terms, -- I know exactly what the Federal Government is up to. I know exactly what information they are looking for; I know exactly how to get that information and I know exactly how they plan to eventually use that information. Requirement # 1: Identify its customers. I have no problem with this requirement so long as that identifying information is limited to name, mailing address and an account number generated by the "local" financial institution and assigned to a particular account to provide unique identification, but absolutely nothing more. Requirement # 2: Determine its customers' source of funds. This I have a BIG problem with. Even though the government would like for you to believe that this requirement is related to identifying "possible" illegal money laundering by drug traffickers, that is not the only reason they want to know the source of your finances. Remember now, the ultimate objective of the vast majority of government regulations and programs are directed at controlling the "individual." This item required that you advise the bank of all the sources that you will be receiving money from that you will be depositing in this particular account. We will expand this item in more detail below. Requirement # 3. Determine the normal and expected transactions of its customers. For purposed of this discussion we will consider only four primary parameters related to deposits and withdrawals against this particular account. First: When you established a new checking account you will be required to identify the number of deposits you expect to make each month and the average amount of each deposit. For example (a) military retirement pay = $2,000.00, (b) Social Security Income = $400.00, (c) Rent from income property = $750.00, (d) Interest from stocks & bonds = $ 300.00, and so on. Second: You will be required to identify the number of withdrawals you expect to make each month from this account and the estimated amount of each withdrawal. For example; (a) Mortgage payment=$ 800.00, (b) Car Payment = $250.00, (c) College tuition = $ 1,000.00). Once the average number of deposits and the average amount of each deposit has been determined and the average number of withdrawals and the average amount of each withdrawal has been established, it will be very easy to identify all transactions, in and out, that exceed the established norms for this particular account. For example should you find a paper bag on the side of the highway containing 10,000 well used one dollar bills, or Aunt Sue passed away and left you 10,000 well used one dollar bills and you deposited that windfall in your checking or savings account, that would immediately be detected as exceeding the established norms for your account. Requirement # 4. Monitor account activity for transactions that are inconsistent with those normal and expected transactions. This requirement establishes the requirement that each financial institution establish a procedure to monitor your financial accounts on a regular basis for any transactions that exceed the established norms as illustrated above. Requirement # 5. Report any transactions of its customers that are determined to be suspicious ---. This requirement requires that all financial institutions immediately report any and all suspicious transactions detected as a result of deposits or withdrawals that exceed the established norms for your account. As I was reviewing the aforementioned FDIC document, as quoted above, I called a long time friend of mine who is vice president of a local bank that I do business with. I ask my vice president friend to identify the government agency(s) to which he would report such a suspicious transaction. His response was, the IRS and the FBI, at the national level. My friends, as a long time ADP/EDP Systems Analyst I want you to pay particular attention to the following. Whenever a good and successful Information (Data) Processing Systems Analyst designs a large scale information processing system, such as what we have been talking about above, he will ALWAYS allow for future expansion of "existing" applications and processing capabilities and his design work will also allow for "additional" applications and processing capabilities to be added with a minimum of additional effort and cost. Based on my 48+ plus years in the business, let me tell you what you can expect in the very near future if the proposed "rulemaking" provisions as defined in the FDIC document identified above are allowed to be implemented. Please, read the following very carefully because it lays out the route our government is taking toward a cashless society as required by the design of a one world government under the United Nations. 1. PRESENTLY ALL recipients of military retirement pay MUST have a bank account into which their monthly retirement pay is electronically transferred. The government will no longer pay individual retirees directly, or send their retirement pay to a home address. This is part of an over all plan to extended more absolute control over the individual. It has absolutely nothing to do with economy as the government would have you to believe. 2. In the very near future look for legislation that will "require" ALL government employees, federal, state and local, to have a bank account into which their salary will also be electronically transferred, just like the retired military. In as much as most government employees already have the direct deposit option available, it requires only vary simple legislation to complete this phase of the plan. 3. Next you will see legislation that will outlaw the direct payment of all wages or salaries to any individual, by an employer. All employees who work for a wage or salary, will also be required to have a bank account into which the employer will be required to direct deposit their salary. And once again the legislation necessary to accomplish phase of the plan is very simple and easy to implement, simply because most business would welcome the reduced payroll cost. The governments objective here is to eventually make the local financial institution the only source of legal tender for the individual. At this point and for the purpose of this paper, legal tender is defined as dollars, debit cards or other credit cards. When objectives 2 & 3 above have been fully accomplished, it will then be a very simple matter to implement the rest of the plan. Let me explain it this way. The total plan equates to $1.00 (One dollar) When steps 2 & 3 have been fully implemented, as step 1 has already been accomplished, that will equate to $ .95 cents of that $1.00. The rest of the plan equates to only 5 cents out of that one dollar. And just what is the rest of the plan? It's very simple. After steps 1, 2 and 3 as noted above have been fully implemented, the only thing left to do then would be to outlaw all cash transactions and require all transactions now involving cash, be accomplished through the use of checks or smart cards followed by the eventual elimination of the checks. At that point the federal government can then trace, track AND CONTROL ALL TRANSACTIONS, simply because all transactions will then be processed by massive computer systems controlled by the federal government. Given the above accomplishments and current electronic capabilities, the ability to exercise absolute control over "individuals" provided by the additional five cents noted above are absolutely mind boggling. There are many, many more reasons that all Americans should and must oppose implementation of the five (5) requirements identified above. There are TWO things that every American should do, immediately. First: All Americans should send a letter to the FDIC expressing their STRONG objection and opposition to the plan to PROFILE individual bank accounts for what ever purpose. The FDIC will be accepting public comments until December 27. Send your comments to: Robert E. Feldman, Executive Secretary Attention: Comments/OES, FDIC 550 17th Street, NW Washington, DC 20429 --- Spectre <temporal@earthlink.net 12-3-98 Hi Jeff: Found this site about the new FDIC "Know your Customer" regulations: http://www.bankinfo.com/compliance/newkyc.html Seems to me the laws and regulations can be interpreted to mean a lot and I wouldn't completely discount the article you posted on your web page as a complete hoax, if you read the article.: PARTS from that page below: " By requiring banking organizations to determine the true identity of their customers, as well as to obtain knowledge regarding the legitimate activities of their customers, the proposed regulations will reduce the likelihood that banking organizations will become unwitting participants in illicit activities conducted or attempted by their customers." "While it is impossible to identify every transaction at a financial institution that is potentially illegal or is being conducted to assist criminals in the movement of illegally derived funds, it is fundamental for safe and sound operations that financial institutions take every reasonable measure to identify their customers, understand the legitimate transactions to be conducted by those customers and, consequently, identify those transactions conducted by their customers that are unusual or suspicious in nature. By identifying and, when appropriate, reporting such transactions, in accordance with existing suspicious activity reporting requirements, financial institutions are protecting their integrity and are assisting the efforts of the bank regulatory agencies and law enforcement authorities to thwart illicit activities at financial institutions." "The Board has long advocated that one of the most effective means by which a financial institution can both protect itself from engaging in transactions designed to facilitate illicit activities and ensure compliance with applicable suspicious activity reporting requirements is for the institution to have adequate "Know Your Customer" policies and procedures" "In the Board's view, a financial institution should take the necessary and reasonable steps to determine the true identity of its customers, their sources of funds, and their normal and expected transactions and to identify unusual or suspicious activities". ------ Please excuse my distress, but often times the best-intentioned people are quick to jump and call something a "Hoax," which unfortunately misleads people, when just the opposite is true. Being very familiar with legal research, it was simple for me to determine if the the e-mail sent to you by Mr. Gene Ingram [gene@cup.hp.com] declaring the post the "Feds and FDIC to Monitor All Your Personal Financial Activities" a hoax; and to see if Mr. Ingram was presumptively correct in his analysis. The most impmrtant point you should know it was stated in the beginning of the article in re the "Feds and FDIC" that this was a *proposed rule* being submitted by the FDIC "...requiring insured nonmember banks to adopt and maintain "Know Your Customer" programs." ALL proposed rules submitted by any federal agency must first be sent to the Federal Register for publication under the *notice* rules.

From the wording of this "Sunshing Act Meeting" chaired by the Board of Governors for the Federal Reserve System, the FDIC is "only following orders." Please find below a replica of the *notice*:

[Federal Register: September 28, 1998 (Volume 63, Number 187)] [Notices] [Page 51579]

From the Federal Register Online via GPO Access [http://www.wais.access.gpo.gov] [DOCID:fr28se98-60]

----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM Sunshine Act Meeting Agency Holding the Meeting: Board of Governors of the Federal Reserve System. Time and Date: 10:00 a.m., Thursday, October 1, 1998. Place: Marriner S. Eccles Federal Reserve Board Building, C Street entrance between 20th and 2lst Streets, N.W., Washington, D.C. 20553. Status: Open. Matters to be Considered: Summary Agenda: Because of its routine nature, no discussion of the following item is anticipated. This matter will be voted on without discussion unless a member of the Board requests that the item be moved to the discussion agenda. 1. Publication for comment of proposed amendments to Regulation H (Membership of State Banking Institutions in the Federal Reserve Qystem), Regulation K (International Banking Operations), and Regulation Y (Bank Holding Companies and Change in Bank Control) to require domestic and foreign banking organizations to develop and maintain ``Know Your Customer'' programs. 2. Any items carried forward from a previously announced meeting. Discussion Agenda: None. No Discussion Items Are Scheduled For This Meeting. Note: If an item is moved from the Summary Agenda to the Discussion Agenda, discussion of the item will be recorded. Cassettgs will then be available for listening in the Board's Freedom of Information Office, and copies can be ordered for $6 per cassette by calling 202-452-3684 or by writing to: Freedom of Information Office, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Contact Person for More Information: Lynn S. Fox, Assistant to the Board; 202-452-3204. Supplementary Information: You may call 202-452-3006 for a recorded announcement of this meeting; or you may contact the Board's Web site at http://www.federalreserve.gov for an electronic announcement. (The Web site also includes procedural and other information about the open meeting.) Dated: September 24, 1998. Robert deV. Frierson, Associate Secretary of the Board. [FR Doc. 98-25960 Filed 9-24-98; 11:19 am] BILLING CODE 6210-01-P ___________________________________________________________ The rule[s] will not be published in the Code of Federal Regulations (CFR) until the proposed rule[s] is finalized. These rule changes will be to Regulations H, K and Y pertaining to Banking administration procedures. The proposed changes *may* be all inclusive within 12 CFR 326 - I wouldn't begin to guess until the final rules are drafted. Perhaps this is the reason why Mr. Ingram was unable to find what he was looking for. In the interim, I suggest caution, research and a thoroughly checking your sources before labeling anything a *Hoax* or stating something as fact if you don't know first hand or from personal experience. If anything, the obvious fact this determination was dictated by the Board of Governors of the Federal Reserve System ...well, I'll leave that to your readers to decide the relevancy or merit of the Board's decree. If you would like additional information, please feel free to contact me. Lynn Shaffer fadaar@psn.net DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] LISTSERV@LISTSERV.AOL.COM To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] LISTSERV@LISTSERV.AOL.COM Om