Washington, D.C. – Last week, US Sens. Mike Lee of Utah and Rick Scott of Florida introduced the Saving Privacy Act to reform banking and finance regulations to better safeguard the privacy and security of American consumers.
The bill would amend the Bank Secrecy Act, repealing the need for transactions to be reported to government authorities in “suspicious activity reports”. The bill would also ban a Central Bank Digital Currency, repeal the Corporate Transparency Act, require warrants for government acquiring personal financial information, require congressional authorization for major financial regulations, create a private right of action for those harmed by illicit government activity, and much more.
The Consumer Choice Center believes the bill is a noble, comprehensive, and creative effort at reforming consumer finance and should be championed by representatives in Washington.
“Rather than forcing banks to hound their customers for cash withdrawals to purchase cars, pay rent, or simply live their lives, Senator Lee’s Saving Privacy Act would restore consumer financial privacy and make reporting standards reasonable enough to still target malicious actors and criminals,” said Yaël Ossowski, Deputy Director at the Consumer Choice Center.
“The rigorous Know Your Customer standards from the Bank Secrecy Act have forced financial institutions to collect more information than needed from their customers, leading to the risk of data leaks, hacks, and breaches that have compromised consumer security and privacy.
“This has also forced finance providers to deny accounts to customers based on arbitrary criteria, cutting off consumers who are the least well-off from the innovative financial product market,” added Ossowski.
The bill would no longer require banks to submit compliance reports to financial authorities when they are over arbitrary limits, while at the same time protecting Fourth Amendment protections that have for far too long been curtailed by expansive government policy.
“Rather than dedicating insurmountable of time to compliance and surveillance on customers dealing in lower amounts, financial institutions also will be able to better compete for our business and better protect our financial privacy. This will free them up to focus on bad actors who are exploiting these rules. Consumers deserve no less,” concluded Ossowski.
The Consumer Choice Center supports the reforms behind the Saving Privacy Act, and will continue to champion for consumers who believe in tech innovation, lifestyle freedom, and freedom of choice.
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