A contentious investigation by the House Judiciary Committee exposes federal law enforcement's surveillance tactics targeting Americans' private financial information.
According to Fox News, the FBI has been manipulating the Suspicious Activity Report (SAR) system to access citizens' financial data without obtaining warrants or establishing probable cause, as detailed in an interim report released by the House Judiciary Committee and its Subcommittee on the Weaponization of the Federal Government.
The investigation revealed that federal authorities encouraged banks to search customer transactions using specific keywords like "MAGA," "Trump," and "Biden." Additionally, the FBI coordinated with financial institutions to monitor purchases at retailers such as Dick's Sporting Goods, Cabela's, and Bass Pro Shops, raising serious concerns about privacy rights and constitutional protections.
The committee's findings indicate that federal law enforcement has effectively transformed financial institutions into extensions of their investigative apparatus. By bypassing standard legal procedures, the FBI has been issuing informal requests that function as demands for information about individuals they deem suspicious.
The Bank Secrecy Act specifies that banks should file SARs when identifying suspicious transactions that might violate laws or regulations. However, the committee found that the FBI has reversed this framework by providing banks with pre-emptive lists of supposedly suspicious individuals.
The FBI defended its practices in a statement, emphasizing that they cannot initiate investigations without evidence of federal criminal violations or national security threats. They maintained that their actions are guided by law and facts, not solely by First Amendment activities.
The committee's investigation began after a whistleblower revealed that Bank of America voluntarily provided the FBI with customer data following the January 6, 2021, Capitol riot. The bank shared information about individuals who used their credit or debit cards in the Washington, D.C., area during that period.
Committee Chair Jim Jordan, along with his colleagues, discovered that the surveillance extended beyond the Capitol riot. Documents showed that the FBI worked with the Treasury Department's Financial Crimes Enforcement Network to encourage financial institutions nationwide to examine their data and file SARs on hundreds of Americans.
According to the report from the House Judiciary Committee:
Documents show that federal law enforcement increasingly works 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.
The committee emphasized that modern financial technologies and the decline of cash transactions have made it increasingly difficult for Americans to maintain financial privacy. E-commerce and digital payment systems have created an extensive trail of personal financial data.
One financial institution proposed using SARs as a foundation for issuing Patriot Act 314(a) requests, which would allow FinCEN to search through more than 37,000 points of contact at over 16,000 financial institutions. This proposal aimed to track accounts and transactions potentially linked to terrorism or money laundering.
The committee's report warns:
With the rise in e-commerce and the widespread adoption of cash alternatives like credit cards or peer-to-peer payment services, the future leaves very little financial activity beyond the purview of modern financial institutions or the government's prying eyes.
The House Judiciary Committee's investigation has exposed the FBI's systematic approach to accessing Americans' private financial information without proper legal authorization. Through the manipulation of the SAR system and coordination with financial institutions, federal law enforcement has established a comprehensive surveillance network that raises significant constitutional concerns and threatens individual privacy rights. The committee's findings indicate that without implementing new protective measures, the federal government and financial institutions will continue to collect and share Americans' sensitive financial data, potentially eliminating any remaining aspects of financial privacy in the United States.
