If the federal regulatory agencies have their way, bank tellers will be brought into the nation's war on drugs. The Federal Deposit Insurance Corp., The Federal Reserve, the Comptroller of the United States and the Manager of the Currency have all signed off on a proposed national regulation that would require banks to monitor their customers' transactions and report any suspicious activity to bank regulatory agencies. According to Steve Katsanos, press liaison for the FDIC, the proposed "Know Your Customer" regulation would require banks to establish policies and procedures to obtain information on banking habits. "The rule is supposed to aid in the effort to combat illegal drug trade," Katsanos said. As proposed, the regulation will require banks to determine the identity of their customers, their sources of funds and what their normal and expected transactions are, and a system to monitor customer activity for transactions inconsistent with those expectations.
DAVID A. BEALL, Times-Union Staff Writer- | July 28, 2016