Comment by kolanos | Hacker News Reader

Comment by kolanos | Hacker News Reader

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Isn't this a clear violation of the 4th amendment?

> “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things ...

Note it says "the people" and not "citizens of the United States". Everyone has this protection within U.S. borders, SCOTUS has ruled to this effect.

So the government forcing yet more private companies to do their unconstitutional bidding seems like something that should b opposed. I believe banks being required to collect KYC came about through The Patriot Act. If this trend continues, you'll need to verify your identity to use any service.

That isn’t just a trend, that’s actually this proposed rule change!

Banks collecting KYC actually started with the Banking Secrecy Act of 1970. This was tried in the Supreme Court case California Bankers Association v Schultz (1974). It holds that recordkeeping requirements do not constitute a privacy violation under the 4th amendment absent reporting requirements. Since this new rule (2024) applies only to foreign entities and OFAC controls provide penalties for domestic companies, there’s no fifth amendment issue either (which is a shame imo, the 5th amendment argument in Bankers v Schultz seems incredibly shaky).

There’s no reporting requirements or new crime being created here; the intention is to “”aid”” IaaS providers in complying with OFAC requirements, and, when a warrant is issued, the actual identities of the customers to be known.

> If this trend continues, you'll need to verify your identity to use any service.

Once we started to send "National Security Letters" to public libraries after PATRIOT to find out what people were reading, this future became an inevitability.

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