Legislatures in at least two states are considering resolutions condemning the proposed know-your-customer rule.
In New Hampshire, a resolution sponsored by the chairmen of the House Finance and Commerce committees said the proposal's privacy violations far outweigh its anti-money laundering objectives and called it "an illegal search and seizure in violation of the Fourth Amendment" to the U.S. constitution.
In Vermont, the House of Representatives approved a similar resolution last week. It said the know-your-customer proposal would force banks to "probe" the private and legitimate affairs of its customers, change the relationship between banks and their customers, and violate the state and U.S. constitutions.
If adopted, copies of the resolutions would be forwarded to Congress, bank regulators, and President Clinton.