Privacy Act of 1974, as Amended, System of Records

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

Privacy Act of 1974, as Amended, System of Records

AGENCY: Departmental Offices, Treasury.

ACTION: Notice of altered Privacy Act system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act of

1974, as amended, 5 U.S.C. 552a, the Financial Crimes Enforcement

Network (FinCEN), Department of the Treasury (Treasury), gives notice

of a proposed alteration to an existing system of records entitled the

``Bank Secrecy Act Reports File--Treasury/Customs .067'' and its

renaming and renumbering as a Treasury-wide system of records ``Bank

Secrecy Act Reports System--Treasury/DO .213.'' The system notice was

last published in its entirety in the Federal Register, Volume 60, page

56776, November 9, 1995.

DATES: Comments must be received no later than February 10, 1997. The

system of records will be effective as of February 19, 1997, unless

comments are received that result in a contrary determination and

notice is published to that effect.

ADDRESSES: Written comments should be sent to Office of Legal Counsel,

FinCEN, 2070 Chain Bridge Road, Suite 200, Vienna, VA 22182-2536,

Attention: BSA System of Records. Comments will be made available for

inspection and copying by appointment. To make an appointment, please

contact Eileen Dolan, Office of Legal Counsel, FinCEN, at 703-905-3590.

FOR FURTHER INFORMATION CONTACT: Cynthia A. Langwiser, Attorney

Advisor, Office of Legal Counsel, FinCEN, 2070 Chain Bridge Road, Suite

200, Vienna, VA 22182-2536, (703) 905-3582.

SUPPLEMENTARY INFORMATION: The Department of the Treasury is amending

[[Page 1490]]

the existing Privacy Act notice for this system of records, ``Bank

Secrecy Act Reports File--Treasury/Customs .067''\1\ and renaming and

renumbering it as ``Bank Secrecy Act Reports System--Treasury/DO

.213.'' This alteration will conform the notice to changes in the

designation of the system manager and the location of the system of

records as a result of changes in organizational responsibilities in

the Department and will more accurately describe the categories of

individuals covered by the system, the categories of records included

in the system, and the policies and procedures for storage, retrieval,

access, retention, and disposal of the records. In addition, three new

routine uses for the records will be added. Finally, for purposes of

clarity, the proposed alteration makes certain minor editorial changes

to the notice and adds text to certain elements.

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\1\The notice for this system of records was published December

2, 1975 at 40 FR 56194 under the title ``Currency and Monetary

Instrument Reporting System (CMIR).'' The title ``Currency and

Monetary Instrument Reporting System (CMIR)'' was changed to ``Bank

Secrecy Act Report File'' by notice published 48 FR 36052 (August 8,

1983), effective October 7, 1983.

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The system of records contains information collected under the Bank

Secrecy Act (BSA), codified at 12 U.S.C. 1829b, 1951-1959 and 31 U.S.C.

5311-5314, 5316-5330, which authorizes the Secretary of the Treasury to

issue regulations requiring records and reports of financial

transactions that are determined to have a high degree of usefulness in

criminal, tax, and regulatory matters. These regulations appear at 31

CFR Part 103. Currently, the system of records containing the reports

required by these regulations is a United States Customs Service

Privacy Act system of records; however, the authority of the Secretary

to administer these regulations, including the authority to disseminate

BSA information, was delegated by memorandum dated May 13, 1994 to the

Director of FinCEN, an officer reporting to the Office of the Under

Secretary (Enforcement). Therefore, it is necessary to move this system

of records from the Privacy Act system of records inventory maintained

by the Customs Service to the Privacy Act system of records inventory

maintained by Treasury's Departmental Offices and to make conforming

changes in the notice to reflect the authority of FinCEN's Director

over this system of records.

In addition, three new routine uses for the records contained in

this system are proposed. The first proposed new routine use, which

will be added as routine use (3), will permit disclosure, by electronic

means, to Federal and State criminal law enforcement agencies, of

information to identify or permit the identification of patterns of

suspected illegal activity occurring within their areas of

jurisdiction. The second proposed new routine use, which will be added

as routine use number (4), will permit disclosure of relevant

information to any Federal or State regulatory agency or self

regulatory organization that examines for BSA compliance when necessary

to their supervisory or compliance responsibilities. The third proposed

new in computer matching with requesting Federal and State agencies

under agreements approved in accordance with the Privacy Act. The

matches will be performed to help eliminate waste, fraud, and abuse in

government programs by identifying individuals who may not be eligible

for benefit programs and/or potentially in violation of law and

regulation. The information disclosed will be limited to those data

elements relevant to the purpose of the match. The new routine uses,

which are compatible with the criminal and regulatory purposes for

which the information is collected, reflect the role technology plays

in combating criminal, civil, and regulatory violations and waste,

fraud and abuse in government programs, as well as the increasing

importance of Federal and State cooperation in law enforcement. Current

routine use numbers (3) through (5) will be renumbered as routine uses

(6) through (8).

Because information in this system of records may be retrieved by

personal identifier, the Privacy Act of 1974 requires the Treasury

Department to give general notice and seek public comments.

The altered system of records report, as required by 5 U.S.C.

552a(r), has been submitted to the Committee on Governmental Affairs of

the United States Senate, Committee on Government Reform and Oversight

of the United States House of Representatives, and the Office of

Management and Budget (``OMB''). See Appendix I to OMB Circular A-130,

``Federal Agency Responsibilities for Maintaining Records About

Individuals,'' 61 FR 6428, 6436 (February 20, 1996).

The proposed altered system of records, renamed and renumbered as

``Bank Secrecy Act Reports System--Treasury/DO .213,'' is republished

in its entirety below.

Dated: December 27, 1996.

Alex Rodriguez,

Deputy Assistant Secretary (Administration).

Treasury/DO .213

System Name:

Bank Secrecy Act Reports System--Treasury/DO .213.

System Location:

Electronic Records: Currency and Banking Retrieval System, Internal

Revenue Service Detroit Computing Center, 985 Michigan Avenue, Detroit,

Michigan, 48226-1129 and Treasury Enforcement Communications System,

United States Customs Service Newington, 7681 Boston Boulevard,

Springfield, Virginia, 22153-3140.

Paper Records: Form 4790--U.S. Customs Service, Newington, VA. All

other forms, including, but not limited to, Form 4789, TDF 90.22-1 and

Form 8362--Internal Revenue Service, Detroit, MI.

Categories of Individuals Covered by the System:

Persons identified in reports required to be filed under the Bank

Secrecy Act and its implementing regulations (31 CFR part 103)

including, but not limited to, reports made on IRS Form 4789 (Currency

Transaction Report), IRS Form 8362 (Currency Transaction Report by

Casinos), Customs Form 4790 (Report of International Transportation of

Currency or Monetary Instruments), Treasury Form TDF 90-22.1 (Report of

Foreign Bank and Financial Accounts), and forms filed by casinos

located in the State of Nevada in lieu of Form 8362. (This system of

records does not cover persons identified in Suspicious Activity

Reports, TDF 90-22.47. Those reports are included in another system of

records, ``Suspicious Activity Reporting System--Treasury/DO .212'').

Categories of Records in the System:

Reports required to be filed under the Bank Secrecy Act and its

implementing regulations (31 CFR part 103) including, but not limited

to, reports made on IRS Form 4789 (Currency Transaction Report), IRS

Form 8362 (Currency Transaction Report by Casinos), Customs Form 4790

(Report of International Transportation of Currency or Monetary

Instruments), Treasury Form TDF 90-22.1 (Report of Foreign Bank and

Financial Accounts), and forms filed by casinos located in the State of

Nevada in lieu of Form 8362. (This system does not include Suspicious

Activity Reports, TDF 90-22.47, required under 31 CFR part 103. Those

reports are included in another

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system of records, ``Suspicious Activity Reporting System--Treasury/DO

.212''). These reports include names of individuals and other entities

filing the reports, names of the owners of monetary instruments, the

amounts and kinds of currency or other monetary instruments

transported, reported, or in foreign banking accounts, account numbers,

addresses, dates of birth, and other personal identifiers.

Authority for Maintenance of the System:

12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314, 5316-5330; 5

U.S.C. 301; 31 CFR part 103; Treasury Department Order No. 105-08.

Purpose(s):

The Bank Secrecy Act, codified at 12 U.S.C. 1829b and 1951-1959 and

31 U.S.C. 5311-5314, 5316-5330, authorizes the Secretary of the

Treasury to issue regulations requiring records and reports that are

determined to have a high degree of usefulness in criminal, tax, and

regulatory matters. The Secretary's authority has been implemented

through regulations promulgated at 31 CFR part 103. The purpose of this

system of records is to maintain the information contained on the

reports required under these regulations. This information is

disseminated, both electronically and manually, in accordance with

strict safeguards, to appropriate Federal, State, local and foreign

criminal law enforcement and regulatory personnel in the official

performance of their duties. The information is used in a wide range of

criminal investigations, including, but not limited to, investigation

of international and domestic money laundering, tax evasion, fraud, and

other financial crimes.

Routine Uses of Records Maintained in the System, Including Categories

of Users and the Purpose of Such Uses:

These records and information in these records may be used to:(1)

Disclose pertinent information to appropriate Federal, State, local, or

foreign agencies responsible for investigating or prosecuting the

violations of, or for enforcing or implementing, a statute, rule,

regulation, order, or license, where the disclosing agency becomes

aware of an indication of a violation or potential violation of civil

or criminal law or regulation; (2) Disclose information to Federal,

State, or local agencies, maintaining civil, criminal or other relevant

information, which has requested information relevant to or necessary

to the requesting agency's hiring or retention of an individual, or

issuance of a security clearance, license, contract, grant, or other

benefit; (3) Disclose to appropriate Federal, State, or local agencies

engaged in the identification, investigation, and prosecution of

violations or potential violations of criminal statutes, information,

in a computerized format, to identify or to permit the identification

of patterns of suspected criminal activity that fall within the

jurisdiction of the agency requesting the information; (4) Disclose

information to Federal or State regulatory agencies or self regulatory

agencies responsible for supervising compliance with the Bank Secrecy

Act, limited to information relevant to meeting supervisory or

compliance responsibilities; (5) Disclose relevant information on

individuals to authorized Federal and State agencies through computer

matching in order to help eliminate waste, fraud, and abuse in

Government programs and identify individuals who are potentially in

violation of civil law, criminal law, or regulation; (6) Disclose

information to a court, magistrate, or administrative tribunal in the

course of presenting evidence, including disclosures to opposing

counsel or witnesses in the course of civil discovery, litigation, or

settlement negotiations, in response to a subpoena, or in connection

with criminal law proceedings; (7) Provide information to the news

media, in accordance with guidelines contained in 28 CFR 50.2, that

relates to an agency's functions relating to civil and criminal

proceedings; and (8) Provide information to third parties during the

course of an investigation to the extent necessary to obtain

information pertinent to the investigation.

Policies and Practices for Storing, Retrieving, Accessing, Retaining,

and Disposing of Records in the System:

Storage:

Records are maintained in magnetic media and on hard paper copy.

Retrievability:

By name and other unique identifier.

Safeguards:

All persons with electronic access to records in the system will

have successfully completed a background investigation. All State and

local agency personnel, and all Federal personnel outside the U.S.

Department of the Treasury with electronic access will have

successfully completed appropriate training. Passwords and access

controls will be utilized. Signed agreements outlining usage and

dissemination rules are required of all non-Treasury agencies before

electronic access is authorized. Procedural and physical safeguards

include: The logging of all queries and periodic review of such query

logs; compartmentalization of information to restrict access to

authorized personnel; physical protection of sensitive hard copy

documents and magnetic tapes; encryption of electronic communications;

intruder alarms and other security devices; and 24-hour building

guards. The system complies with all applicable security requirements

of the Department of the Treasury.

Retention and Disposal:

Indefinite.

Systems Manager(s) and Address:

General Policy: Director, Financial Crimes Enforcement Network,

2070 Chain Bridge Road, Vienna, Virginia 22182-2536

Computer Systems Maintenance and Administration: Director, IRS

Computing Center, 985 Michigan Avenue, Detroit, Michigan, 48226-1129

and Director, Office of Information Technology, U.S. Customs Service

Newington, 7681 Boston Boulevard, Springfield, Virginia, 22153-3140.

Notification Procedure:

This system is exempt from notification requirements, record access

requirements, and requirements that an individual be permitted to

contest its contents, pursuant to the provisions of 5 U.S.C. 552a(j)(2)

and (k)(2).

Record Access Procedures:

See ``Notification Procedure'' above.

Contesting Record Procedures:

See ``Notification Procedure'' above.

Record Source Categories:

Pursuant to the provisions of 5 U.S.C. 552a(j)(2) and (k)(2), this

system is exempt from the requirement that the record source categories

be disclosed.

Exemptions Claimed for the System:

This system is exempt from 5 U.S.C. 552a(c)(3), (c)(4), (d)(1),

(d)(2), (d)(3), (d)(4), (e)(1), (e)(2), (e)(3), (e)(4)(G), (e)(4)(H),

(e)(4)(I), (e)(5), (e)(8), (f) and (g) of the Privacy Act pursuant to 5

U.S.C. 552a(j)(2) and (k)(2). See 31 CFR 1.36.

[FR Doc. 97-605 Filed 1-9-97; 8:45 am]

Billing Code: 4810-25-F