The federal government will soon track all financial transactions at
banking institutions and businesses. The use of cash for payments
over $100 may soon be illegal, and all paychecks will be made
through direct deposit — like it or not.
One group doesn’t like it, and is making a concerted effort to
inform the public of what it sees as an invasion of privacy and
government interference in the lives of innocent, law-abiding
citizens.
Thousands of pastors and concerned Christians have recently been
asked to send letters of protest to the Federal Deposit Insurance
Corporation. The proposed regulation has been targeted by the
Christian Alert Network for defeat, according to Rev. Curt Tomlin.
The national group tracks issues that threaten the principles and
standards of Christians and traditional families. Tomlin recently
warned his members of threats to personal freedom and privacy caused
by the FDIC proposal. The public has until Dec. 27 to offer
comments.
The proposed regulation will require FDIC insured nonmember banks to
develop and maintain “Know Your Customer” programs. All other
federal supervisory agencies will also enact the same regulation to
prevent bank customers from moving their funds to avoid the
regulation. All banks, savings associations, federally-chartered
branches and agencies of foreign banks, as well as credit unions
will come under the regulation. Even broker-dealers and other
non-bank financial institutions will face the same regulation to
investigate and report customer’s activities.
The proposal to turn banking institutions into investigators and
informants is outlined in a report recently obtained by
WorldNetDaily, and Tomlin is warning his members that it is just
the beginning of complete loss of privacy.
“As proposed,” the FDIC document begins, “the regulation would
require each nonmember bank to develop a program designed to
determine the identity of its customers; determine its customers’
source 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. By requiring insured nonmember banks
to determine the identity of their customers, as well as to obtain
knowledge regarding the legitimate activities of their customers,
the proposed regulation will reduce the likelihood that insured
nonmember banks will become unwitting participants in illicit
activities conducted or attempted by their customers. It will also
level the playing field between institutions that already have
adopted formal ‘Know Your Customer’ programs, and those that have
not.”
Tomlin is well informed on the capabilities of government database
systems, because he has helped design many of them. He has spent
over 48 years as a data processing systems analyst. He helped design
and install such systems for President John F. Kennedy’s battle
staff, Congress, the Department of Defense, and others. He has
served in the Army, Navy, and Air Force. In recent years he has
taught college courses.
“In the field of electronic data processing, your only limitation is
your own imagination,” Tomlin tells his students. “If you can
rationalize it in your mind, electronic data processing can do it.”
Tomlin is greatly concerned about the requirements of the FDIC
regulation which will make banks and their employees the ones who
decide what profiles will be established for customers. If a
customer normally makes a certain amount of deposits and withdrawals
per month then suddenly changes that profile, banks may report that
customer to the FBI for investigation.
“Who will be responsible for establishing, defining and controlling
the limitless number of possible profile parameters,” asked Tomlin.
“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?”
It is a responsibility at least one major national bank branch
president doesn’t want.
“I could see this coming for a long time. It’s not pleasant to have
to do,” said the bank president in a confidential phone interview
Monday. “As far as I know, the bank is not planning to oppose the
move by the FDIC. I think they actually welcome it. The potential
for higher profits is astounding.”
By converting society to electronic financial transactions, banks
will be able to charge more fees, save on manpower, and earn greater
profits. Implementation of the new FDIC regulations will lead to
more regulations which will force employers to pay workers through
payroll deduction. Virtually all federal benefit payments are made
through direct deposit already. Military pay will convert to
electronic deposit very soon for those who have not done so already.
The banker added that his expectation is that all financial transactions
“within a few years at most” will be by electronic transfer, rather
than through the use of cash.
“When banks can get such high fees for every ATM transaction, don’t
you think they see what would happen if they were paid for every
single transaction by every person in the country — in the world for
that matter?” he asked rhetorically. He says he expects new laws
prohibiting any cash transactions between individuals or companies
in excess of $100.
Calls to the public relations office of six of the largest U.S.
banks were met with surprise. Each bank spokesperson said that banks
welcome a uniform standard for “Know Your Customer” so that
customers will be treated the same at all institutions. They also
spoke of the need to prevent funds obtained through illegal
activities from getting into banks.
Tomlin also predicts a complete change to a cashless society in the
very near future. He pointed out that all military retirement
checks, government benefit checks, and many government payroll
checks are being paid through direct deposit. He says all military
and government payroll will also change to direct deposit very soon.
The next step will be legislation that requires all forms of pay be
made through direct deposit. Tomlin says businesses will not object
and banks will make additional fees. Convenience, safety, and
accuracy will be the selling points.
Like the banker, Tomlin believes some form of legislation will
outlaw or limit the amount of cash that can change hands between
individuals. All transactions will have to be “traceable.”
“At that point, the federal government can then trace, track, and
control all transactions,” said Tomlin. “The ability to exercise
absolute control over individuals is absolutely mind boggling.”
The proposed regulation is, according to the FDIC, authorized by
current law. It comes from the statutory authority granted the FDIC
under section 8(s)(1) of the Federal Deposit Insurance Act (12
U.S.C. 18189s)(1), as amended by section 259(a)(2) of the Crime
Control Act of 1990 (Pub. L. 101-647).
Calls made to banks by WorldNetDaily did not find that any major
banks are planning to protest the proposal. Each expects to offer
suggestions on how to more effectively implement the proposal.
Tomlin says that unless the public reacts quickly and strongly the
FDIC will move forward.
Comments from the public may be sent to Robert E. Feldman, Executive
Secretary, Attn: Comments/OES, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429 or faxed to
(202) 898-3838. The deadline is December 27.
David M. Bresnahan ([email protected]) is a contributing editor of
WorldNetDaily.com, is the author of “Cover Up: The Art and Science
of Political Deception,” and offers a monthly newsletter “Talk USA
Investigative Reports.”
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