EFF: Government Wants to Know if You Send Any Money Overseas

Money laundering and terrorist financing are serious problems, but there are several troubling aspects in the new rules proposed by the Financial Crimes Enforcement Network (FinCEN). FinCEN, a bureau of the Department of Treasury, proposed that the government should be told your name, address, bank account number, taxpayer ID, and other sensitive financial information if you electronically transfer any amount of money out of or into the country. Depending upon the type of transfer, these reports could also include passport numbers or alien ID numbers, the amount and currency of the funds transferred, and the name and address of the recipient.

If you are a bargain hunter or eBay shopping guru and you can find a great deal in another country, does the government really need to know that about you? Under proposed new rules, the government will know about it if you pay via PayPal. They will also know everyone who makes an online donation to the International Red Cross or who sends a Western Union transfer to family members living in another country. What if you donate to WikiLeaks? The proposed rules seem to be too invasive, prying into sensitive financial dealings of American citizens. Perhaps even more troubling is that doesn't cover how the agency could securely maintain millions upon millions of people's sensitive information.