Let's stop the government from freezing bank accounts of people it doesnt like

Liberty
1

Executive Summary: This policy proposes the gradual phase-out of Know Your Customer (KYC) and global financial reporting requirements in the United States, based on principles rooted in the U.S. Constitution and the vision of the nation’s founders. It aims to safeguard individual liberty, privacy, and financial autonomy while still maintaining the ability to combat financial crimes effectively. This approach aligns with the fundamental rights enshrined in the Constitution and seeks a return to a more decentralized, freedom-centered financial system.

Policy Objectives:

  1. Uphold Constitutional Rights and Personal Privacy: Protect Americans’ right to privacy and financial autonomy, in line with the Fourth Amendment’s protection against unreasonable searches and seizures.
  2. Limit Government Overreach: Reduce the scope of government surveillance and intervention in the lives of citizens and businesses, consistent with the founders’ intent to limit central authority and preserve individual freedoms.
  3. Promote Economic Freedom and Innovation: Enable a more open and competitive financial system by removing regulatory burdens that stifle entrepreneurship and economic opportunity, reflecting the founders’ belief in the importance of a free and open economy.
  4. Implement Alternative Crime-Prevention Mechanisms: Maintain the ability to combat financial crime while moving away from broad, invasive measures like mandatory KYC and global financial reporting, instead relying on more targeted and efficient monitoring tools.

Policy Details:

1. Suspension of KYC and Global Reporting Requirements:

  • Suspension of Mandatory KYC: End the requirement for financial institutions to collect personal, sensitive information from customers as a condition for most transactions. This would prevent unnecessary and intrusive data collection, which infringes upon citizens’ privacy rights.
  • Termination of Global Financial Reporting: Cease the mandatory reporting of financial transactions to global regulatory bodies, such as FATF, and stop the filing of suspicious activity reports (SARs) to agencies like FinCEN, unless there is direct evidence of criminal activity or a legal mandate linked to specific transactions.

2. Constitutional and Founding Principles-Based Justification:

  1. The Fourth Amendment – Protection Against Unreasonable Searches and Seizures:
  • The Fourth Amendment of the U.S. Constitution explicitly protects individuals from unreasonable searches and seizures. Under current KYC and global reporting requirements, individuals’ personal and financial data is routinely collected and reported to government agencies and international bodies, often without any suspicion of wrongdoing. This broad surveillance infringes on the privacy rights guaranteed by the Constitution.
  • James Madison (the “Father of the Constitution”) was deeply concerned with safeguarding individual rights from governmental overreach. He argued that a government should not have unlimited authority to invade the privacy of its citizens. Ending KYC and global reporting requirements aligns with this vision by reducing unnecessary governmental intrusion into the lives of American citizens.
  1. The Preamble – Promoting the General Welfare Without Undue Interference:
  • The Preamble of the Constitution expresses the purpose of the government to “promote the general welfare” of the people, but not to excessively control or micromanage their daily lives. By lifting KYC and reporting mandates, the government will allow citizens more autonomy, enabling them to engage freely in commerce and finance without undue interference or surveillance.
  • The founders believed in a government that encouraged economic activity and the free market while keeping regulations minimal and focused on protecting individual rights. Excessive financial surveillance is counterproductive to these principles, creating unnecessary burdens on businesses and individuals and stifling economic freedom.
  1. The Tenth Amendment – Limiting Federal Powers:
  • The Tenth Amendment reserves powers not explicitly granted to the federal government to the states or the people. The federal government’s imposition of broad financial surveillance and global reporting mandates exceeds its constitutional authority, especially when the privacy of American citizens is at stake. The policy shift toward removing these requirements aligns with the Tenth Amendment’s principle of decentralization, where states and individuals maintain control over personal financial matters.
  1. Thomas Jefferson on Privacy and Limited Government:
  • Thomas Jefferson, a key architect of American liberty, was adamant about limiting government power, particularly when it comes to individuals’ privacy and freedoms. He argued, “The government that governs least, governs best.” By phasing out KYC and global reporting requirements, the government would be returning to a more minimalist approach, only intervening when absolutely necessary, and allowing citizens the liberty to manage their financial affairs without invasive oversight.
  1. Benjamin Franklin on Privacy and Freedom:
  • Benjamin Franklin famously stated, “Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety.” The current financial surveillance system—under the guise of combating financial crime—represents a trade-off between liberty and security, one that infringes upon the essential liberty of American citizens. Franklin’s wisdom calls us to reconsider the balance and to recognize that enduring freedoms are worth preserving, even in the face of perceived threats.

3. Alternative Crime-Prevention Mechanisms:

  • AI-Driven Transaction Monitoring: Rather than requiring exhaustive KYC procedures and global transaction reporting, financial institutions can use advanced machine learning and artificial intelligence to identify patterns indicative of illicit activities like money laundering or terrorism financing. This targeted, data-driven approach would minimize privacy violations while still identifying suspicious activity effectively.
  • Suspicious Activity Monitoring: Financial institutions can still be required to monitor and report suspicious activities based on red flags (e.g., unusual transaction patterns), but this reporting would be focused on specific, actionable intelligence rather than blanket surveillance of all customers.
  • Enhanced Cybersecurity Measures: While privacy is paramount, financial institutions would also be required to implement stronger cybersecurity protocols to protect personal data from hacking or unauthorized access, ensuring that any collected information is secure.

4. Strengthening Privacy and Data Protection:

  • Data Minimization: Financial institutions would be required to collect only the minimum amount of personal information necessary to complete transactions, thereby reducing the scope of data collection and retention.
  • Clear Data Usage Limits: Legal reforms will be put in place to prevent the misuse of any financial data that is collected, ensuring that personal information is only accessed by authorities under strict, legally defined circumstances.

5. Promoting International Cooperation Without Imposing Global Reporting:

  • Enhanced Global Cooperation: The U.S. will continue to collaborate with other nations to combat global financial crimes through secure information-sharing agreements and joint investigations. However, these efforts will focus on intelligence-sharing based on evidence of wrongdoing, not universal reporting of financial transactions.
  • Advocacy for International Privacy Standards: The U.S. will work to set an example on the international stage by advocating for privacy-respecting financial regulations that balance crime prevention with the protection of individual freedoms.

Expected Benefits:

  • Restoration of Constitutional Freedoms: By eliminating KYC and global reporting requirements, this policy will ensure that individuals’ Fourth Amendment rights are protected, reducing government overreach into private financial matters.
  • Economic Growth and Innovation: By reducing regulatory burdens, the policy will stimulate economic activity, making it easier for businesses and individuals to access financial services and engage in global commerce.
  • Preservation of Liberty: In line with the founders’ vision, this policy aims to limit government power and protect individual liberties, ensuring that personal privacy is not sacrificed in the name of security.
  • More Efficient Crime Prevention: By leveraging advanced technologies and targeted monitoring, this policy ensures that financial crime can still be effectively detected and addressed, without compromising the rights of innocent individuals.

Conclusion:

This policy proposal is rooted in the foundational principles of the U.S. Constitution, aiming to protect individual liberty, privacy, and economic freedom while maintaining effective crime prevention. By ending mandatory KYC and global financial reporting requirements, the U.S. will reduce government overreach, empower businesses, and ensure that privacy remains a core value of the American financial system, in line with the vision of the nation’s founders.