[Federal Register Volume 60, Number 165 (Friday, August 25, 1995)]
[Notices]
[Pages 44347-44349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21178]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
[Docket No. R-0891]
Privacy Act of 1974; Amendment to an Existing System of Records
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Amendment to an existing system of records.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Privacy Act of 1974 (Privacy Act), the
Board of Governors of the Federal Reserve System (Board) is publishing
amendments to the existing system of records called FRB-Supervisory
Tracking and Reference System (BGFRS-21) (the Tracking System). This
amendment reflects the Board's ongoing review of its existing systems
of records pursuant to Appendix I to OMB Circular No. A-130-Revised,
which has resulted in minor changes in nearly all elements of the
system of records. In addition, the changes reflect a new inter-agency
suspicious activity reporting process, combining the criminal referral
and suspicious financial transactions reporting requirements of the
Federal banking agencies and the U.S. Department of the Treasury
(Treasury), and involving the use of a new computerized database
maintained by the Financial Crimes Enforcement Network (FinCEN),
Department of the Treasury, on behalf of the Federal banking agencies
and Treasury.
EFFECTIVE DATE: October 2, 1995.
FOR FURTHER INFORMATION CONTACT: Elaine M. Boutilier, Senior Counsel,
Legal Division, Board of Governors of the Federal Reserve System,
Washington, DC 20551, (202) 452-2418. For users of the
Telecommunications Device for the Deaf (TDD) only, contact Dorothea
Thompson (202-452-3544).
SUPPLEMENTARY INFORMATION: The Privacy Act of 1974, 5 U.S.C. 552a(e)(4)
(Privacy Act), requires each agency to publish a notice of the
establishment of or revision to each system of records maintained by
the agency. The Office of
[[Page 44348]]
Management and Budget (OMB) has oversight authority over agency
implementation of the Privacy Act. In this capacity it offers guidance
to agencies through OMB Circulars. In a recent revision to its Appendix
I to OMB Circular No. A-130 (58 FR 36068, July 2, 1993), OMB stated
that each agency should regularly review the routine use disclosures
associated with each system of records, as well as each system of
records for which it has promulgated exemption rules. As part of this
ongoing review, the Board is amending its existing system of records
entitled FRB-Supervisory Tracking and Reference System (BGFRS-21), for
which it has promulgated exemption rules pursuant to exemption (k)(2)
of the Privacy Act, 5 U.S.C. 552a(k)(2).
Certain of the changes to the system reflect an agreement between
FinCEN and the Board, the Office of the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, the Office of Thrift
Supervision, and the National Credit Union Administration (the Federal
Financial Regulatory Agencies) to store Suspicious Activity Reports
(SAR) in electronic form in a database maintained by FinCEN and located
in Detroit, Michigan. The SAR is being adopted by all Federal Financial
Regulatory Agencies as a replacement for the Criminal Referral Form,
which has been used by financial institutions to report suspected
criminal activity by individuals to the banking agencies and the
Federal law enforcement authorities (see Board, OCC and OTS proposed
rulemakings at 60 FR 34481, July 3, 1995; 60 FR 34476, July 3, 1995;
and 60 FR 36366, July 17, 1995; respectively); and by Treasury to
implement suspicious financial transaction reporting rules. Information
from the Criminal Referral Form has always been included in the
existing Tracking System, and similar information will continue to be
collected by the SAR. In addition to reports of suspected criminal
activity, the SAR will also allow a bank to report suspicious financial
transactions under Federal money laundering statutes, pursuant to
Treasury regulations (31 CFR part 103). This information, which may
include financial transactions by individuals, will be included in the
Tracking System. Only the information collected by the SAR, and its
status updates, will be located in the database maintained by FinCEN;
all other information in the Tracking System will be located at the
Board.
Pursuant to the inter-agency agreement between FinCEN and the
Federal Financial Regulatory Agencies, FinCEN will manage a
computerized database containing the SAR and status updates, which is
information currently collected and/or maintained separately by each of
the Federal Financial Regulatory Agencies. With regard to this
database, only those records that are generated under the jurisdiction
of the Board are considered to be Board records for purposes of the
Privacy Act. Access to and use of these Board records by other agencies
will continue to be governed by the routine uses in the Board's
Tracking System.
Accordingly, the ``Routine Uses'' element is being amended to
reflect the sharing among bank regulatory agencies and law enforcement
agencies of the information collected by the SAR and the status
updates. Additionally, the ``Safeguards'' element is amended to add
that on-line access to the computerized database maintained by FinCEN
is limited to authorized individuals who have been specified by each
Federal Financial Regulatory Agency and Treasury, and who have been
issued a nontransferable identifier or password.
Other amendments reflect organizational changes and are not
significant. The exemption for this system of records continues to be
(k)(2), because the information consists of investigatory material
compiled for law enforcement purposes.
In accordance with 5 U.S.C. 552(r), a report of this amended system
of records is being filed with the President of the Senate, the Speaker
of the House of Representatives, and the Director of OMB. This amended
system of records will become effective on October 2, 1995, without
further notice, unless the Board publishes a notice to the contrary in
the Federal Register.
Accordingly, the Board has amended the system of records entitled
FRB-Supervisory Tracking and Reference System as follows.
BGFRS--21
FRB--Supervisory Tracking and Reference System.
Division of Banking Supervision and Regulation (Enforcement and
Special Investigations and Examinations Sections), Board of Governors
of the Federal Reserve System (Board), 20th and C Streets NW,
Washington, DC 20551. Computerized records of Suspicious Activity
Reports (SARs), with status updates, are managed by the Financial
Crimes Enforcement Network (FinCEN), Department of the Treasury,
pursuant to a contractual agreement, and are stored in Detroit,
Michigan. Authorized personnel at the Board and the Federal Reserve
Banks have on-line access to the computerized database managed by
FinCEN through individual work stations that are linked to the database
central computer.
Directors, officers, employees, agents and persons participating in
the conduct of the affairs of entities regulated by the Board who have
been involved in suspected criminal activity or suspicious financial
transactions and referred to law enforcement officials; and other
individuals who have been involved in irregularities, violations of
law, or unsafe or unsound practices referenced in documents received by
the Board in the course of exercising its supervisory functions.
Inter- and intra-agency correspondence, memoranda and reports. The
SAR contains information identifying the financial institution
involved, the suspected person, the type of suspicious activity
involved, and any witnesses.
12 U.S.C. 248(a), 1820(d) and 1818 (for state member banks); 12
U.S.C. 1844 (for bank holding companies and their subsidiaries); 12
U.S.C. 622 and 625 (for Edge and Agreement corporations); 12 U.S.C.
3105 (for U.S. branches and agencies of foreign banks).
The overall system serves as a central Board repository for
investigatory or enforcement information related to the Board's
responsibility to examine and supervise entities regulated by the
Board.
The system maintained by FinCEN serves as the database for the
cooperative storage, retrieval, analysis, and use of information
relating to Suspicious Activity Reports made to or by the Board, the
Office of the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, the Office of Thrift Supervision, and the
National Credit Union Administration (collectively, the Federal
Financial Regulatory Agencies), and FinCEN to various law enforcement
agencies for possible criminal, civil, or administrative proceedings
based on known or suspected violations affecting or involving persons,
financial institutions, or other entities under the supervision or
jurisdiction of such Federal Financial Regulatory Agencies.
[[Page 44349]]
Information in these records may be used to:
(1) Provide information or records to any appropriate governmental
department or agency or self-regulatory organization charged with the
responsibility of administering law or investigating or prosecuting
violations of law or charged with enforcing or implementing a statute,
rule, regulation, order, policy, or license;
(2) Provide the Federal Financial Regulatory Agencies and FinCEN
with information relevant to their operations;
(3) Disclose information to third parties during the course of an
investigation to the extent necessary to obtain information pertinent
to the investigation;
(4) Disclose information, when appropriate, to foreign governmental
authorities in accordance with law, and formal or informal
international agreements;
(5) Disclose certain records, in the event of litigation or
enforcement action, to the appropriate court, magistrate, or
administrative tribunal; or to counsel or witnesses for the
presentation of evidence in the course of discovery, to the extent
permitted by law; and
(6) With regard to formal or informal enforcement actions, release
information pursuant to 12 U.S.C. 1818(u), which requires the Board to
publish and make available to the public final orders and written
agreements, and modifications thereto.
The records will be maintained in electronic data processing
systems and in paper and card files.
Computer output, file folders, and card files are retrievable by
indexes of data fields, including name of financial institution,
Federal Reserve Bank District, and individuals' names.
Paper records and word processing discs are stored at the Board in
lockable metal file cabinets. The database maintained by FinCEN
complies with applicable security requirements of the Department of the
Treasury. On-line access to the information in the database is limited
to authorized individuals who have been designated by each Federal
Financial Regulatory Agency and FinCEN, and each such individual has
been issued a nontransferable identifier or password.
Records are maintained indefinitely.
Deputy Associate Director (Enforcement and Special Investigations
and Examinations Sections), Division of Banking Supervision and
Regulation, Board of Governors of the Federal Reserve System, 20th and
C Streets, NW, Washington, DC 20551, (202) 452-2620.
Inquiries should be sent to the Secretary of the Board, Board of
Governors of the Federal Reserve System, 20th Street and Constitution
Avenue, NW, Washington, DC 20551.
Same as ``Notification procedure'' above.
Same as ``Notification procedure'' above.
Information received by the Board from various sources, including,
inter alia, law enforcement and other agency personnel involved in
sending inquiries to the Board, documents received by the Board in the
course of executing the Board's supervisory responsibilities, and
reports and forms filed by individuals to whom the records pertain. The
information maintained by FinCEN is compiled from SAR and related
historical and updating forms compiled by financial institutions, the
Board, and the other Federal Financial Regulatory Agencies for law
enforcement purposes.
This system is exempt from 5 U.S.C. 552a (c)(3), (d)(1), (d)(2),
(d)(3), (d)(4), (e)(1), (e)(4)(G), (H), and (I), and (f) of the Privacy
Act pursuant to 5 U.S.C. 552a(k)(2).
By order of the Board of Governors of the Federal Reserve
System, August 22, 1995.
William W. Wiles,
Secretary of the Board.
[FR Doc. 95-21178 Filed 8-24-95; 8:45 am]
BILLING CODE 6210-01-P