[Federal Register Volume 62, Number 7 (Friday, January 10, 1997)]
[Notices]
[Pages 1489-1491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-605]


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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