[Federal Register Volume 60, Number 240 (Thursday, December 14, 1995)]
[Notices]
[Pages 64239-64241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30434]



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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Privacy Act of 1974; As Amended; System of Records

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Amendment to an existing system of records.

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SUMMARY: In accordance with the Privacy Act of 1974 (Privacy Act), the 
Department of the Treasury (Treasury), the Office of the Comptroller of 
the Currency (OCC) is publishing an amendment to an existing system of 
records. This amendment reflects an ongoing review of an existing 
system of records pursuant to Appendix I to OMB Circular No. A-130--
Revised, which has resulted in changes in nearly all elements of the 
system of records. In addition, the changes reflect a new proposed 
interagency suspicious activity reporting process, combining the 
criminal referral and suspicious financial transactions reporting 
requirements of the Federal financial regulatory agencies and Treasury, 
and involving the use of a new computerized database maintained by 
Financial Crimes Enforcement Network (FinCEN) on behalf of the Federal 
financial regulatory agencies and Treasury.

DATES: Comments must be received by January 16, 1996. If no comments 
are received which precipitate changes to the system, the system will 
become effective on January 23, 1996.

ADDRESSES: Comments should be sent to: Communications Division, Docket 
No. 95-25, Office of the Comptroller of the Currency, 250 E Street, SW, 
Washington, DC 20219, or FAX number 202-874-5274. Electronic comments 
should be sent to [email protected]. 

[[Page 64240]]
Comments will be available for public inspection and photocopying at 
the same location.

FOR FURTHER INFORMATION CONTACT: Frank D. Vance, Jr., Disclosure 
Officer, Communications Division, (202) 874-4700; Robert S. Pasley, 
Assistant Director, Enforcement and Compliance Division, (202) 874-
4800.

SUPPLEMENTARY INFORMATION: The OCC is amending its existing system of 
records entitled Enforcement and Compliance Information System, 
Treasury/Comptroller .013, last published in the Federal Register at 60 
FR 56688 (November 9, 1995) for which it has promulgated exemption 
rules pursuant to exemptions (j)(2) and (k)(2) of the Privacy Act, 5 
U.S.C. 552a(j)(2) and (k)(2). Components of the system have been 
designated as exempt under 5 U.S.C. 552a(j)(2). In addition, because 
the information in the system consists of investigatory material 
compiled for law enforcement purposes, the system is exempt under 5 
U.S.C. 552a(k)(2).
    Certain of the changes to the system reflect an agreement between 
FinCEN and the Federal Reserve Board (FRB), OCC, the Federal Deposit 
Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), 
and the National Credit Union Administration (NCUA) (the Federal 
financial regulatory agencies) to store Suspicious Activity Reports 
(SAR), as well as information pertaining to administrative actions 
taken against individuals, in electronic form in a database maintained 
by FinCEN and located at the Internal Revenue Service (IRS) Computing 
Center in Detroit, Michigan. It is proposed that the IRS Computing 
Center, as a contractor to FinCEN and the Federal financial regulatory 
agencies, will operate and administer the computer system that supports 
the SAR database.
     The Federal financial regulatory agencies are adopting the SAR as 
a replacement for the Criminal Referral Form, which has been used by 
depository institutions to report suspected criminal activity to the 
Federal financial regulatory agencies and the Federal law enforcement 
authorities (see FRB and OCC proposed rules at 60 FR 34481 and 60 FR 
34476, respectively, July 3, 1995, and OTS proposed rule at 60 FR 
36366, July 17, 1995), and by Treasury to implement suspicious 
financial transaction reporting rules (see Treasury proposed rule at 60 
FR 46556, September 7, 1995).
     Information from the Criminal Referral Form was included in the 
existing Enforcement and Compliance Information System, and similar 
information collected through the SAR will continue to be included in 
the revised Enforcement and Compliance Information System. In addition 
to reports of suspected criminal activity, the SAR also allows 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, is included in the existing system. Only the information 
collected by the SAR, and its status updates, are located in the 
database maintained by FinCEN; all other information in the Enforcement 
and Compliance Information System is located at the OCC.
     Pursuant to the inter-agency agreement between FinCEN and the 
Federal financial regulatory agencies, FinCEN will manage a 
computerized database containing the SAR, administrative actions 
against individuals and status updates, which is information currently 
collected and/or maintained separately by the Federal financial 
regulatory agencies. With regard to this database, only those records 
generated under the jurisdiction of the OCC are considered to be OCC 
records for purposes of the Privacy Act. Access to and use of these OCC 
records by other agencies continue to be governed by the routine uses 
in the OCC's Enforcement and Compliance Information System.
     Accordingly, the ``Routine Uses'' element is amended to reflect 
one new routine use, regarding the sharing among Federal financial 
regulatory agencies and law enforcement agencies of the information 
collected by the SAR, the administrative actions and the status 
updates. In addition, the following ``Routine Uses'' are being deleted 
from the existing system: numbers (2), (4), (8), and (10). One of the 
``Routine Uses,'' number (7), has been modified to more narrowly define 
when and under what circumstances the OCC will, in its sole discretion, 
disclose copies of the SAR. Another ``Routine Use,'' number (9), has 
been modified slightly. The routine uses have also been renumbered. 
Additionally, the ``Safeguards'' element is amended to add that on-line 
access to the computerized database maintained by FinCEN is limited to 
authorized individuals specified by each Federal financial regulatory 
agency and Treasury, and issued a non-transferable identifier or 
password.
     Other amendments reflect organizational changes and are not 
significant. The exemptions for this system of records continue to be 
(j)(2) and (k)(2), 5 U.S.C. 552a(j)(2) and (k)(2), because the 
information consists of investigatory material compiled for law 
enforcement purposes.
     The altered system of records report, as required by 5 U.S.C. 
552a(r) of the Privacy Act, has been submitted to the Committee on 
Government Reform and Oversight of the House of Representatives, the 
Committee on Governmental Affairs of the Senate, and the Office of 
Management and Budget, pursuant to Appendix 1 to OMB Circular A-130, 
Federal Agency Responsibilities for Maintaining Records About 
Individuals, dated July 15, 1994.
     The proposed altered system of records, Treasury/Comptroller .013, 
Enforcement and Compliance Information System is published in its 
entirety below.

     Dated: December 5, 1995.
 Alex Rodriguez,
 Deputy Assistant Secretary (Administration).
 Treasury/Comptroller .013
 SYSTEM NAME:
     Enforcement and Compliance Information System.
 SYSTEM LOCATION:
     Comptroller of the Currency, 250 E Street, SW, Washington, DC 
20219. Computerized records of Suspicious Activity Reports (SAR), 
administrative actions with status updates, are managed by FinCEN, 
Department of the Treasury, pursuant to a contractual agreement, and 
are stored at the IRS Computing Center in Detroit, Michigan. Authorized 
personnel at the Federal financial regulatory agencies have on-line 
access to the computerized database managed by FinCEN through 
individual work stations that are linked to the database central 
computer.
 CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
     Directors, officers, employees, shareholders, agents, and persons 
participating in the conduct of the affairs of entities regulated by 
the OCC who have been involved in suspected criminal activity or 
suspicious financial transactions and referred to law enforcement 
officials; and/or who have been involved in irregularities, violations 
of law, unsafe or unsound practices and/or breaches of fiduciary duty 
and have been the subject of an administrative action taken by the OCC.
 CATEGORIES OF RECORDS IN THE SYSTEM:
     SAR filed by national banks and/or by national bank examiners or 
attorneys for the OCC. The SAR contains information identifying the 
financial institution 

[[Page 64241]]
involved, the suspected person, the type of suspicious activity 
involved, the amount of loss known, and any witnesses. Also, 
administrative actions taken by the OCC against directors, officers, 
employees, shareholders, agents, and persons participating in the 
conduct of the affairs of entities regulated by the OCC.
 AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
     12 U.S.C. 481, 1817(j), 1818 and 1820; 15 U.S.C. 78c(a)(34), 
78l(i), 78u, 78o-4.
 PURPOSE(S):
     The overall system serves as a central OCC repository for 
investigatory or enforcement information related to the responsibility 
of the OCC to examine and supervise entities regulated by the OCC.
     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 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.
 ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
     Information in these records may be used to: (1) Provide the 
Department of Justice with periodic reports that indicate the number, 
amount, individual identity, and other details concerning outstanding 
potential criminal violations of the law that have been referred to the 
Department; (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) Provide information or records to any appropriate 
domestic or foreign governmental 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; 
(5) Disclose, when considered appropriate, information to a bar 
association, or other trade or professional organization performing 
similar functions, for possible disciplinary action; (6) Disclose 
information, when appropriate, to international and foreign 
governmental authorities in accordance with law and formal or informal 
international agreements; (7) Disclose the existence, but not 
necessarily the content, of information or records in cases where the 
OCC is a party or has direct interest and where the OCC, in its sole 
discretion, has concluded that such disclosure is necessary; (8) 
Disclose information to any person with whom the OCC contracts to 
reproduce, by typing, photocopying or other means, any record within 
this system for use by the OCC and its staff in connection with their 
official duties or to any person who is utilized by the OCC to perform 
clerical or stenographic functions relating to the official business of 
the OCC.
 POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
 STORAGE:
     Records are maintained on magnetic media and in paper and card 
files.
 RETRIEVABILITY:
     Computer output, file folders, and card files are retrievable by 
indexes of data fields, including name of financial institution and 
individuals' names.
 SAFEGUARDS:
     Paper and card files are stored in lockable metal file cabinets. 
Computer disks maintained at the OCC are accessed only by authorized 
personnel. 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 specified by each Federal financial regulatory agency and 
FinCEN, and each such individual has been issued a non--transferable 
identifier or password.
 RETENTION AND DISPOSAL:
     Records are periodically updated to reflect changes and maintained 
as long as needed.
 SYSTEM MANAGER(s) AND ADDRESS:
     Director, Enforcement and Compliance Division, and Director, 
Securities and Corporate Practices Division, Law Department, Office of 
the Comptroller of the Currency, 250 E Street, SW, Washington, DC 
20219.
 NOTIFICATION PROCEDURE:
     Certain records in this system are exempt from notification and 
record--access requirements and requirements that an individual be 
permitted to contest its contents under 5 U.S.C. 552a(j)(2) and (k)(2) 
as relating to investigatory material compiled for law enforcement 
purposes. Requests relating to records not subject to the exemption 
should be sent to: Director, Public Affairs, 250 E Street, SW, 
Washington, DC 20219.
 RECORD ACCESS PROCEDURE:
     See ``Notification procedure'' above.
 CONTESTING RECORD PROCEDURE:
     See ``Notification procedure'' above.
 RECORD SOURCE CATEGORIES:
     Suspicious activity reports and related historical information and 
updating forms compiled by the OCC and the other Federal financial 
regulatory agencies for law enforcement purposes. The OCC will also 
include information from its Enforcement and Compliance Information 
System.
 EXEMPTIONS CLAIMED FOR THE SYSTEM:
    Components of this system have been designated as exempt from 5 
U.S.C. 552(a)(3), (c)(4), (d), (e)(1), (e)(2), (e)(3), (e)(4)(G), 
(e)(4)(H), (e)(5), (e)(8), (f) and (g) of the Privacy Act pursuant to 5 
U.S.C. 552a(j)(2) and (k)(2).

 [FR Doc. 95-30434 Filed 12-13-95; 8:45 am]

BILLING CODE 4810-33-F