Know Your Customer
FIL-34-99
April 8, 1999
| TO: |
CHIEF EXECUTIVE
OFFICER |
| SUBJECT: |
FDIC Board
Withdraws Proposed "Know Your Customer" Rule |
The Federal
Deposit Insurance Corporation (FDIC) Board of Directors has withdrawn
the proposed "Know Your Customer" rule published for
public comment on December 7, 1998. Attached is a copy of the
March 29, 1999, Federal Register notice withdrawing the proposed
rule.
During the
comment period, which ended on March 8, 1999, the FDIC received
an unprecedented number of comments. After reevaluating the rule,
the FDIC Board voted to withdraw it on March 23, 1999.
Most of the
comments on the proposed rule reflected public concern over the
privacy of information that would be collected and held by financial
institutions. Many comments addressed the expected burden the
proposed rule would impose on banks and savings associations.
The FDIC is sensitive not only to the concerns raised by the those
who commented, but also to the need to ensure that the institutions
we regulate adhere to the nation's anti-money laundering statutes,
including the Bank Secrecy Act. We agree that there must be an
appropriate balance between these legitimate interests.
The FDIC's
withdrawal of the proposed rule does not diminish in any manner
our long-standing support for the anti-money laundering provisions
of the Bank Secrecy Act. Over the past 15 years, banking organizations
and law enforcement authorities have forged a vital partnership
to fight financial crime. This partnership will continue, and
will evolve as technology and other factors intensify the challenges
we face.
If you have
any questions, please contact your Division of Supervision regional
office. For your reference, all FDIC Financial Institution Letters
published since January 1995 may be found on the FDIC's Web site
at www.fdic.gov under the "Banking
News" category.
Attachment:
March 29, 1999, Federal Register, Vol. 64, No. 59, page 14845
HTML Format PDF Format
(20 Kb - PDF help or hard
copy)
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper
copies of FDIC financial institutions letters may be obtained
through the FDIC's Public Information Center, 801 17th Street,
NW, Room100, Washington, DC 20434 (800-276-6003 or
(703) 562-2200).
