The United States Senate has voted 88 to zero to derail a controversial proposal which would require banks to monitor customer transactions. The Senate added an provision to an education bill to prevent banking regulators from proceeding with the so-called Know Your Customer proposal. Banks are already required to report suspicious customer activity, but Know Your Customer also requires them to maintain identity profiles on their clients and to determine the sources of their funds. A period of public comment on the proposal ends today, Monday March 8. Reuters reports that of the 180,000 letters received during the comment period, only 150 were in favor of Know Your Customer. In spite of this, it will require a full Senate or House of Congress vote or an executive back-down to prevent the legislation from taking effect early next year.
