Bush Grabs New Power for FBI

Wired News ^ | Jan. 06, 2004 | Kim Zetter

[antiRepublicrat]

While the nation was distracted last month by images of Saddam Hussein's spider hole and dental exam, President George W. Bush quietly signed into law a new bill that gives the FBI increased surveillance powers and dramatically expands the reach of the USA Patriot Act.

The Intelligence Authorization Act for Fiscal Year 2004 grants the FBI unprecedented power to obtain records from financial institutions without requiring permission from a judge.

Under the law, the FBI does not need to seek a court order to access such records, nor does it need to prove just cause.

Previously, under the Patriot Act, the FBI had to submit subpoena requests to a federal judge. Intelligence agencies and the Treasury Department, however, could obtain some financial data from banks, credit unions and other financial institutions without a court order or grand jury subpoena if they had the approval of a senior government official.

The new law (see Section 374 of the act), however, lets the FBI acquire these records through an administrative procedure whereby an FBI field agent simply drafts a so-called national security letter stating the information is relevant to a national security investigation.

And the law broadens the definition of "financial institution" to include such businesses as insurance companies, travel agencies, real estate agents, stockbrokers, the U.S. Postal Service and even jewelry stores, casinos and car dealerships.

The law also prohibits subpoenaed businesses from revealing to anyone, including customers who may be under investigation, that the government has requested records of their transactions.

Bush signed the bill on Dec. 13, a Saturday, which was the same day the U.S. military captured Saddam Hussein.

[antiRepublicrat]

IIRC, there was this archaic thing called the 4th Amendment which required a judge's approval for searches, right? Well, it's gone now.

[Support Free Republic]

Click!

[evad]

Well, it's gone now.

YUP..it's all Bush's fault.

Of course I'm not sure how he signed it unless it was passed by congress.

Fear not though, we can depend on the Supremes to do the right thing at the appropriate time.

[agitator]

"The new law (see Section 374 of the act), however, lets the FBI acquire these records through an administrative procedure whereby an FBI field agent simply drafts a so-called national security letter stating the information is relevant to a national security investigation."

And then a fat lady who used to work for the DMV rubber stamps it.

[billorites]

"Bush Grabs New Power for FBI"

Not a moment too soon either.

[agitator]

He didn't have to sign it did he?

[Keith]

Oh give me a MFing break...you and these jerks will be the first ones whining when the Islamic dirty bomb makes your house glow in the dark...and gives your children leukemia...

I am a nut on the subject of constitutional rights...I teach US Govy and my kids know the Bill of Rights...

How many people know that the Constitution even provides for Congress to suspend habeas corpus in an emergency?

Congress passed the bill, the president signed it...anyone wanna bet on whether the USSC will choose to block it?

try NONE. This isn't everyday crap here, this is WAR. And the frontline is office buildings, ports, schools, churches, and HOMES.

We are not talking jackbooted Feebies here...

Considering the threat, the courts will consider these powers under very specific Congressional-granted situations reasonable...

[joesnuffy]

well hopefully none of their Muslim translators will be able to use it....

[agitator]

Too bad you're the instructor.

[theDentist]

Well, it's gone now.

Wrong. It's still there. It still requires Judicial Oversight. You must convice a judge that there is just cause to take additional steps.

[gwjack]

Flag for future reading

[Gunslingr3]

I am a nut on the subject of constitutional rights...I teach US Govy and my kids know the Bill of Rights... How many people know that the Constitution even provides for Congress to suspend habeas corpus in an emergency?

Does it provide Congress the power to suspend the 4th amendment? If so, please point me to the Article, Section and clause. Thanks.

Congress passed the bill, the president signed it...anyone wanna bet on whether the USSC will choose to block it?

After CFR? Which side of the bet are you offering to take?

[angkor]

"financial institution" to include such businesses as insurance companies, travel agencies, real estate agents, stockbrokers, the U.S. Postal Service and even jewelry stores, casinos and car dealerships.

Strange omissions here, aren't Wal-Mart, 7-11, florists, and Safeway also "financial institutions"? They take money, yes?

[eno_]

Read my tag line.

If I sort of have rights, I'm sort of maybe inclined to defend the nation that sort of protects those rights. If my not busy.

[eno_]

A financial institution is anything an FBI agent claims it is, and anything an anonymous "senior offical" agrees it is. But the law is even broader: Any BUSINESS including a sole proprietorship run out of your home is a business subject to being required to turn over any and all documents on request.

Yeah, get out the scissors, the IVth is dead.

[Hon]

Sec. 374. Modification to definition of financial institution in Right
to Financial Privacy Act

Section 374 is similar to both Section 354 of the Senate
amendment and to Section 334 of the House bill. Section 374 of
the Conference Report expands the definition of ``financial
institution'' for purposes of section 1114 of the Right to
Financial Privacy Act (12 U.S.C. 3414 (RFPA)). It provides
enhanced authority for authorized Intelligence Community
collection activities designed to prevent, deter, and disrupt
terrorism and espionage directed against the U.S. and to
enhance foreign intelligence efforts.

The Conferees believe this new definition is necessary
for effective counterintelligence, foreign intelligence, and
international terrorism operations of the United States.
Section 1114 currently permits U.S. Government authorities
engaged in counterintelligence or foreign intelligence
activities to use ``National Security Letters,'' approved by a
senior government official, to obtain certain financial records
from defined ``financial institutions.'' The definition of
``financial institution'' in the RFPA has been essentially
unmodified since the RFPA became law in 1978.

This amendment updates the definition to include those entities that today
provide financial services to individuals, but would not be
covered by the current definition. Financial records maintained
by these entities are not currently covered by the RFPA and,
thus, are not accessible by intelligence elements of the United
States Government using this authority. In order to expand the
definition of ``financial institution'' for purposes only of
section 1114, this subsection adopts, in part, the definition
of ``financial institution'' found in section 5312(a)(2) of
Title 31, United States Code. It is important to highlight that
this definition also is consistent with the definition used in
section 804(5) of the Counterintelligence and Security
Enhancements Act of 1994 (50 U.S.C. 438).

The Conferees intend that this authority be used for
accessing records and information from financial institutions
for counterintelligence, foreign intelligence, and
international terrorism investigations. The Conferees note,
with approval, the significant actions of the U.S. Government
in tracking terrorist finances. The Conferees believe that the
authority granted by this section will enhance the Government's
efforts in this regard. This provision allows the U.S.
Government to have, through use of ``National Security
Letters,'' greater access to a larger universe of information
that goes beyond traditional financial records, but is
nonetheless crucial in tracking terrorist finances or espionage
activities. The Conferees understand that this authority should
be used for accessing records and information for the purposes
of identifying an individual's financial relationship with the
specified financial institutions.

http://www.fas.org/irp/congress/2003_cr/h112003.html

[Hon]

"In order to expand the
definition of ``financial institution'' for purposes only of
section 1114, this subsection adopts, in part, the definition
of ``financial institution'' found in section 5312(a)(2) of
Title 31, United States Code. It is important to highlight that
this definition also is consistent with the definition used in
section 804(5) of the Counterintelligence and Security
Enhancements Act of 1994 (50 U.S.C. 438)."

Oh, the outrage!

[drlevy88]

Fear not though, we can depend on the Supremes to do the right thing at the appropriate time.

Irony to be sure, but in a matter like this how would we even know the case came before the Supreme Court at all? If the aggrieved "financial institution" cannot reveal that it has been thus served, the appeals will, at best, be in total secrecy. There won't even be a "John Doe" visible on the Supreme Court's docket. Sufficient public knowledge even to file an amicus brief? Forget it!

[Hon]

TITLE 31 > SUBTITLE IV > CHAPTER 53 > SUBCHAPTER II > Sec. 5312. Prev | Next
Sec. 5312. - Definitions and application


(a)

In this subchapter -

(1)

''financial agency'' means a person acting for a person (except for a country, a monetary or financial authority acting as a monetary or financial authority, or an international financial institution of which the United States Government is a member) as a financial institution, bailee, depository trustee, or agent, or acting in a similar way related to money, credit, securities, gold, or a transaction in money, credit, securities, or gold.

(2)

''financial institution'' means -

(A)

an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)));

(B)

a commercial bank or trust company;

(C)

a private banker;

(D)

an agency or branch of a foreign bank in the United States;

(E)

an insured institution (as defined in section 401(a) [1] See References in Text note below.

(F)

a thrift institution;

(G)

a broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);

(H)

a broker or dealer in securities or commodities;

(I)

an investment banker or investment company;

(J)

a currency exchange;

(K)

an issuer, redeemer, or cashier of travelers' checks, checks, money orders, or similar instruments;

(L)

an operator of a credit card system;

(M)

an insurance company;

(N)

a dealer in precious metals, stones, or jewels;

(O)

a pawnbroker;

(P)

a loan or finance company;

(Q)

a travel agency;

(R)

a licensed sender of money;

(S)

a telegraph company;

(T)

a business engaged in vehicle sales, including automobile, airplane, and boat sales;

(U)

persons involved in real estate closings and settlements;

(V)

the United States Postal Service;

(W)

an agency of the United States Government or of a State or local government carrying out a duty or power of a business described in this paragraph;

(X)

a casino, gambling casino, or gaming establishment with an annual gaming revenue of more than $1,000,000 which -

(i)

is licensed as a casino, gambling casino, or gaming establishment under the laws of any State or any political subdivision of any State; or

(ii)

is an Indian gaming operation conducted under or pursuant to the Indian Gaming Regulatory Act other than an operation which is limited to class I gaming (as defined in section 4(6) of such Act);

(Y)

any business or agency which engages in any activity which the Secretary of the Treasury determines, by regulation, to be an activity which is similar to, related to, or a substitute for any activity in which any business described in this paragraph is authorized to engage; or

(Z)

any other business designated by the Secretary whose cash transactions have a high degree of usefulness in criminal, tax, or regulatory matters.

(3)

''monetary instruments'' means -

(A)

United States coins and currency;

(B)

as the Secretary may prescribe by regulation, coins and currency of a foreign country, travelers' checks, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery, and similar material; and

(C)

as the Secretary of the Treasury shall provide by regulation for purposes of section 5316, checks, drafts, notes, money orders, and other similar instruments which are drawn on or by a foreign financial institution and are not in bearer form.

(4)

''person'', in addition to its meaning under section 1 of title 1, includes a trustee, a representative of an estate and, when the Secretary prescribes, a governmental entity.

(5)

''United States'' means the States of the United States, the District of Columbia, and, when the Secretary prescribes by regulation, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, the Trust Territory of the Pacific Islands, a territory or possession of the United States, or a military or diplomatic establishment.

(b)

In this subchapter -

(1)

''domestic financial agency'' and ''domestic financial institution'' apply to an action in the United States of a financial agency or institution.

(2)

''foreign financial agency'' and ''foreign financial institution'' apply to an action outside the United States of a financial agency or institution