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How the federal government weaponized the bank secrecy act to spy on Americans

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Armstrong Economics By Martin Armstrong

A Congressional investigation committee released an extremely concerning report this week entitled: “FINANCIAL SURVEILLANCE IN THE UNITED STATES: HOW THE FEDERAL GOVERNMENT WEAPONIZED THE BANK SECRECY ACT TO SPY ON AMERICANS” that details how the US government has been monitoring American citizens through bank transactions, with an emphasis on citizens who have expressed conservative viewpoints.

“Financial data can tell a person’s story, including one’s “religion, ideology, opinions, and interests” as well as one’s “political leanings, locations, and more,”’ the report begins. This investigation began after a whistleblower who happens to be a retired FBI agent alerted Congress that the Bank of America (BoA) voluntarily provided the Biden Administration information on customers who used a credit or debit card in Washington, D.C., around the January 6 protests. The new report has revealed that federal agencies have been working “hand-in-glove with financial institutions, obtaining virtually unchecked access to private financial data and testing out new methods and new technology to continue the financial surveillance of American citizens.”

Surveilence

As I’ve said countless times, “money laundering” is ALWAYS the excuse for why the government must track and monitor our financial transactions. The Bank Secrecy Act (BSA) E-Filing System is a system for financial institutions to file reports required by the BSA electronically. By law, the BSA requires businesses to keep records and file reports to help prevent and detect money laundering. This is how the Biden Administration is attempting to disregard privacy and weaponize financial institutions.

US intelligence agencies searched through records for terms like “Trump” and “MAGA” to target Americans who they believed may hold “extremist” views. The agencies searched for Americans who purchased religious texts, such as the Bible, and also labeled them extremists. Anyone expressing disdain for the COVID lockdowns, vaccines, open borders, or the deep state were placed on a watchlist. Again, the BSA was used as a premise to pull transactions placed by the individuals on this list.

Debanking

As explained by the investigative committee:

“With narrow exception, federal law does not permit law enforcement to inquire into financial institutions’ customer information without some form of legal process.9  The FBI circumvents this process by tipping off financial institutions to “suspicious” individuals and encouraging these institutions to file a SAR—which does not require any legal process—and thereby provide federal law enforcement with access to confidential and highly sensitive information.10 In doing so, the FBI gets around the requirements of the Bank Secrecy Act (BSA), which, per the Treasury Department, specifies that “it is . . . a bank’s responsibility” to “file a SAR whenever it identifies ‘a suspicious transaction relevant to a possible violation of law or regulation’”11 While at least one financial institution requested legal process from the FBI for information it was seeking,12 all too often the FBI appeared to receive no pushback. In sum, by providing financial institutions with lists of people that it views as generally “suspicious” on the front end, the FBI has turned this framework on its head and contravened the Fourth Amendment’s requirements of particularity and probable cause.”

Under this premise, anyone who held a viewpoint that opposed the Biden Administration was considered a “suspicious” individual who required monitoring. The Treasury Department’s Financial Crimes Enforcement Network created a database to carefully watch potential dissenters. Over 14,000 government employees accessed the FinCEN database last year and conducted over 3 million searches without a warrant. In fact, over 15% of FBI investigations during 2023 has some link to this database. It is estimated that 4.6 million SARs and 20.8 million Currency Transaction Reports (CTRs) were filed in the last year.

The committee noted that the government is incorporating AI to quickly search the web for “suspicious” Americans:

“As the Committee and Select Subcommittee have discussed in other reports, the growth and expansion of AI present major risks to Americans’ civil liberties.211 For example, the Committee and Select Subcommittee uncovered AI being used to censor “alleged misinformation regarding COVID-19 and the 2020 election . . . .”212 Those concerns are not hypothetical. Some AI systems developed by Big Tech companies have been programmed with biases; for example, Google’s Gemini AI program praised liberal views while refusing to do the same for conservative views, despite claiming to be “objective” and “neutral.” With financial institutions seemingly adopting AI solutions to monitor Americans’ transactions, a similarly biased AI program could result in the systematic flagging or censoring of transactions that the AI is trained to view as “suspicious.”

This is extremely troubling and goes beyond government overreach and violated numerous Constitutional protections. The government effectively transformed banking institutions into spy agencies, and anyone who could potentially hold a view that did not fit the Biden-Harris agenda has been treated as potential terrorist. It is completely insane that someone could be seen as an extremist for purchasing a religious text or purchasing a firearm. This is discriminatory, predatory behavior that puts millions of lives at risk. Think of governments in the past who have rounded up names of dissenters based on religion or ideology. They claim they are merely observing us, but the goal is to silence us.

The committee said their investigation has just begun as they will not allow the government’s abuse of financial data to go unchecked. Furthermore, they are concerned that these warrantless searches can lead to widespread debanking practices where the government can easily block any dissenter from participating in society by crippling them financially. This is yet another reason why governments want to push banks to create CBDC so that they can punish citizens with a simple click of a button.

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Trump promises new era of government efficiency with DOGE

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From The Center Square

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Group files suit over DOGE secrecy on Trump’s first day

President Donald Trump promised Americans that their federal government would operate more efficiently with the creation of the Department of Government Efficiency.

“My administration will establish the brand new Department of Government Efficiency,” the 47th president said to applause from Republicans.

Trump’s remarks on DOGE came the same day as a nonprofit group joined a union to file suit over the outside agency, alleging its secret meetings violate federal law.

The complaint, filed by Public Citizen and the American Federation of Government Employees, alleges DOGE violates the Federal Advisory Committee Act because “members do not have a fair balance of viewpoints, meetings are held in secret and without public notice and records and work product are not available to the public.”

“AFGE will not stand idly by as a secretive group of ultra-wealthy individuals with major conflicts of interest attempt to deregulate themselves and give their own companies sweetheart government contracts while firing civil servants and dismantling the institutions designed to serve the American people,” AFGE National President Everett Kelley said in a statement. “This fight is about fairness, accountability, and the integrity of our government.”

Trump spoke about DOGE during his inauguration after making bold promises for the department after winning the 2024 election.

Trump picked Tesla CEO Elon Musk and businessman Vivek Ramaswamy to lead DOGE. Trump said the new group will pave the way for his administration to “dismantle government bureaucracy, slash excess regulation, cut wasteful expenditures and restructure federal agencies.”

Both Musk and Ramaswamy attended Trump’s inauguration Monday. The two men previously outlined their plans for DOGE, which includes reducing regulations that would lead to mass layoffs of federal employees.

“A drastic reduction in federal regulations provides sound industrial logic for mass head-count reductions across the federal bureaucracy,” Musk and Ramaswamy wrote in an op-ed for the Wall Street Journal in November. “DOGE intends to work with embedded appointees in agencies to identify the minimum number of employees required at an agency for it to perform its constitutionally permissible and statutorily mandated functions.”

AFGE, which represents more than 800,000 workers in nearly every federal agency, had previously denounced DOGE. Kelley said it will hollow out the federal government and its workforce.

“By their very nature, cuts of this size also would require slashing spending on our military, homeland security, federal law enforcement, and virtually every aspect of our government operations,” he said. “This kind of financial pressure would lead to painful, widespread reductions in services that will affect Americans from every walk of life.”

Trump has promised to cut “hundreds of billions” in federal spending in 2025 through the reconciliation process. DOGE co-leader Musk initially suggested DOGE could cut $2 trillion in spending. Musk more recently said the group will aim for $2 trillion, but likely come up with half that amount.

Congress controls the purse strings for discretionary spending, which totaled about $1.7 trillion in 2023. Congress generally allocates about half of its discretionary spending to the U.S. Department of Defense.

“The number of federal employees to cut should be at least proportionate to the number of federal regulations that are nullified: Not only are fewer employees required to enforce fewer regulations, but the agency would produce fewer regulations once its scope of authority is properly limited,” Musk and Ramaswamy wrote. “Employees whose positions are eliminated deserve to be treated with respect, and DOGE’s goal is to help support their transition into the private sector. The president can use existing laws to give them incentives for early retirement and to make voluntary severance payments to facilitate a graceful exit.”

Congress has run a deficit every year since 2001. In the past 50 years, the federal government has ended with a fiscal year-end budget surplus four times, most recently in 2001.

Last week, the federal government reported net costs of $7.4 trillion in fiscal year 2024, but it couldn’t fully account for its spending. The U.S. Government Accountability Office, which is Congress’s research arm, said that the federal government must address “serious deficiencies” in federal financial management and correct course on its “unsustainable” long-term fiscal path.

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UK lawmaker threatens to use Online Safety Act to censor social media platforms

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From LifeSiteNews

By Didi Rankovic

Labour MP Lola McEvoy defended the Online Safety Act’s censorious measures, including bans and fines for social media platforms which ‘don’t comply’ with the strict age verification law.

Politicians from the U.K.’s ruling Labour party are starting to openly “out” the country’s Online Safety Act for the sweeping censorship law that its opponents have all along been warning it is.

The extreme case of using the law to completely ban social media platforms in the U.K. is now being promoted as a possibility by Labour MP Lola McEvoy.

“If these big platforms that have huge users don’t comply with the Online Safety Act, then they have no right to be accessed in this country,” the MP said while appearing on a podcast, adding, “So I think that’s what the law’s about.”

The masks are coming off, prompted by the latest clash between the government and Prime Minister Keir Starmer in particular and X owner Elon Musk – who criticized their role in a historical child sex exploitation scandal in the U.K.

In addition to saying that failure to comply with the law could result in the platforms getting banned, McEvoy suggested that “unelected citizens from other countries” should not be allowed to criticize U.K.’s government – she justified this by saying the criticism of Minister for Safeguarding Jess Phillips created “a very dangerous situation,” equating it to “bullying and harassment.”

McEvoy even made a point of public figures needing to be even more aggressively protected through censorship – effectively from whatever the government backing those figures decides to pack into the vague categories such as “bullying” and “harassment,” and in that way deal with critical, including legitimate, speech.

And where would any controversial call to step up online censorship be without getting served to the public as a way to above all – protect children?

McEvoy spoke about regulator Ofcom’s powers, which she described as “really significant” in enforcing the fines under the law that is being gradually implemented.

And as that is happening, this MP wants the Online Safety Act to be “strengthened” where it concerns the focus on things it treats as harmful to children, such as access to illegal content or pornography.

Reprinted with permission from Reclaim The Net.

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