[Federal Register Volume 60, Number 240 (Thursday, December 14, 1995)]
[Notices]
[Pages 64241-64243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30435]



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DEPARTMENT OF THE TREASURY
Office of Thrift Supervision


Privacy Act of 1974; As Amended; System of Records

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Amendment to an existing system of records.

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SUMMARY: In accordance with the Privacy Act of 1974 (Privacy Act), 
Office of Thrift Supervision (OTS) 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.


[[Page 64242]]

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: Send comments to: Chief, Dissemination Branch, Records 
Management and Information Policy, Office of Thrift Supervision, 1700 G 
Street, NW, Washington, DC 20552. These submissions may be hand-
delivered to 1700 G Street, NW, from 9 am to 5 pm on business days; 
they may be sent by facsimile transmission to FAX number (202) 906-
7755. Comments will be available for inspection at 1700 G Street, NW, 
from 1 pm until 4 pm on business days.

FOR FURTHER INFORMATION CONTACT: Randy Thomas, Special Counsel, General 
Law Division, (202) 906-7945.

SUPPLEMENTARY INFORMATION: OTS is amending its existing system of 
records entitled Confidential Individual Information System, Treasury/
OTS .001, last published in the Federal Register at 60 FR 13770, (March 
14, 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).
     Certain of the changes to the system reflect a proposed agreement 
between FinCEN, the Federal Reserve Board (FRB), the Office of the 
Comptroller of the Currency (OCC), the Federal Deposit Insurance 
Corporation (FDIC), the OTS, and the National Credit Union 
Administration (NCUA) (the Federal financial regulatory agencies) to 
store Suspicious Activity Reports (SAR) 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. Except for a limited 
number of authorized personnel from the Criminal Investigation 
Division, employees of the IRS will not have access to the SAR 
database.
     The SAR is being adopted by all Federal financial regulatory 
agencies 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 
rules at 60 FR 36366, July 17, 1995), and by Treasury to implement 
suspicious financial transaction reporting rules (see Treasury proposed 
rulemaking at 60 FR 46556, September 7, 1995).
     Information from the Criminal Referral Form is included in the 
existing Information 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 financial institution 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 existing Information 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 Information System is located at the OTS.
     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 generated under the jurisdiction of the 
OTS are considered to be OTS records for purposes of the Privacy Act. 
Access to and use of these OTS records by other agencies continue to be 
governed by the routine uses in the OTS's Information System.
     Accordingly, the ``Routine Uses'' element is amended to reflect 
the sharing among Federal financial regulatory agencies and law 
enforcement agencies of the information collected by the SAR and the 
status updates. Other changes consist of the following: Three of the 
system's former routine uses (numbers 1, 3, and 6) are being retained 
and renumbered as new routine uses 1, 3, and 7. One former routine use 
(number 4) is being deleted. Two former routine uses (numbers 2 and 5) 
have been revised and renumbered, respectively, as new routine uses 4 
and 5. New routine use number 4 clarifies that system records may be 
used to make referrals to any appropriate governmental or self-
regulatory entity with authority to administer law, rule, policy, or 
license. New routine use number 5 clarifies that system records may be 
referred to bar, trade, or professional organizations for possible 
disciplinary action.
     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 
participating agency and Treasury, and who have been 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), 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/OTS .001, 
Confidential Individual Information System, is published in its 
entirety below.

     DATED: December 5, 1995.
 Alex Rodriguez,
 Deputy Assistant Secretary (Administration).
Treasury/OTS .001
 System name:
     Confidential Individual Information System - Treasury/OTS.
 System location:
     Enforcement Division, Office of Thrift Supervision, 1700 G Street, 
NW, Washington, DC 20552. Computerized records of Suspicious Activity 
Reports (SAR), with status updates, are managed by FinCEN pursuant to a 
contractual agreement, and are stored the Internal Revenue Service's 
Computing Center in Detroit, Michigan. Authorized personal 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, agents, borrowers, and persons 
participating in the conduct of the affairs of entities regulated by 
the OTS 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 

[[Page 64243]]
referenced in documents received by OTS in the exercising of its 
supervisory functions.
     These records also contain information concerning individuals who 
have filed notices of intention to acquire control of a savings 
association; controlling persons of companies that have applications to 
acquire control of a savings association; and organizers of savings 
associations who have sought Federal Savings and Loan Insurance 
Corporation (FSLIC) or Saving Association Insurance Fund (SAIF) 
insurance of accounts or federal charters.
 Categories of records in the system:
     Application information and inter-agency 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, the amount of loss known, and 
any witnesses.
 Authority for maintenance of the system:
     12 U.S.C. 1464; 44 U.S.C. 3101.
 Purpose(s):
     The overall system serves as a central OTS repository for 
investigatory or enforcement information related to the responsibility 
of OTS to examine and supervise savings associations. It also serves to 
store information on applicants to acquire, control, or insure a 
savings association in connection with OTS's regulatory 
responsibilities.
     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 on 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) Provide 
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 
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 
professional organizations 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; and (7) Provide 
information to any person with whom the OTS contracts to reproduce, by 
typing, photocopying or other means, any record within this system for 
use by the OTS and its staff in connection with their official duties 
or to any person who is utilized by the OTS to perform clerical or 
stenographic functions relating to the official business of the OTS.
 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 files.
 Retrievability:
     Computer output and file folders are retrievable by indexes of 
data fields, including name of financial institution and individual's 
name.
 Safeguards:
     Paper files are stored in lockable metal file cabinets with access 
limited to authorized individuals. Computer disks maintained at OTS 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, and each 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:
     Deputy Chief Counsel for Enforcement, Office of Thrift 
Supervision, 1700 G Street, NW, Washington, DC 20552.
 Notification procedure:
     The system is 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.
 Record access procedures:
     See ``Notification procedure'' above.
 Contesting record procedures:
     See ``Notification procedure'' above.
 Record source categories:
     Suspicious activity reports and related historical information and 
updating forms compiled by financial institutions, the OTS, and other 
Federal financial regulatory agencies for law enforcement purposes. The 
OTS will also include information from applicants, inter agency and 
intra-agency correspondence, memoranda, and reports.
 Exemptions claimed for the system:
     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 (j)(2) and (k)(2).

 [FR Doc. 95-30435 Filed 12-13-95; 8:45 am]
BILLING CODE 6720-01-F