# Privacy Act of 1974, as Amended, System of Records

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URL: https://www.frixlaw.com/law-library/documents/fr%3A97-605

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** January 10, 1997
- **Citation:** 62 FR 1489

## Text

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

[[Page 1491]]

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-605. Public record. Not legal advice.