[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Proposed Rules]
[Pages 81785-81786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32960]


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POSTAL SERVICE

39 CFR Part 266


Privacy Act of 1974; Implementation

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The U.S. Postal Service proposes to amend its regulations 
implementing the Privacy Act of 1974, 5 U.S.C. 552a. This proposed rule 
would amend its regulation to exempt a new system of records, USPS 
050.080, Finance Records-Suspicious Transaction Reports, from certain 
provisions of the Privacy Act. The exemptions are intended to comply 
with legal prohibitions against the disclosure of certain kinds of 
information, and to protect certain information about individuals 
maintained in the system of records.

DATES: Comments must be received on or before January 26, 2001.

ADDRESSES: Written comments should be addressed to the Manager, Finance 
Administration/FOIA, U.S. Postal Service, 475 L'Enfant Plaza SW, room 
8141, Washington, DC 20260-5202. Copies of all written comments will be 
available Monday through Friday for public inspection and photocopying 
between 9 a.m. and 4 p.m. at the above address.

FOR FURTHER INFORMATION CONTACT: Henry Gibson, (202) 268-4203.

SUPPLEMENTARY INFORMATION: Pursuant to the Bank Secrecy Act, 31 U.S.C. 
5318(g), anti-money laundering provisions, and implementing regulations 
of the U.S. Treasury, 31 CFR Part 103, the Postal Service is required 
to report to the Department of the Treasury certain suspicious 
financial transactions that are relevant to a possible violation of law 
or regulation. Further, the Postal Service is prohibited from notifying 
any participant in the

[[Page 81786]]

transaction that a report has been made. 31 U.S.C. 5318(g)(2).
    The Postal Service is publishing separately a notice of a new 
system of records, USPS 050.080, Finance Records-Suspicious Transaction 
Reports, which was made necessary by the reporting requirements of the 
Bank Secrecy Act. The system of records contains information about 
certain postal customers who purchase or receive money orders, wire 
transfers, or stored value cards.
    In order to permit compliance with the non-notification requirement 
of the Bank Secrecy Act, the Postal Service is adopting an exemption 
from the Privacy Act provisions related to individual access. Under 5 
U.S.C. 552a(k)(2), the head of an agency may promulgate rules to exempt 
a system of records from certain provisions of 5 U.S.C. 552a if the 
system of records is ``investigatory material compiled for law 
enforcement purposes, other than material within the scope of 
subsection (j)(2) of this section.''
    The Postal Service is hereby giving notice of a proposed rule to 
exempt the Suspicious Transaction Report system from certain provisions 
of the Privacy Act pursuant to 5 U.S.C. 552a(k)(2). The reasons for 
exempting the system of records from sections (c)(3), (d), (e)(1), 
(e)(4)(G), (e)(4)(H), (e)(4)(I), and (f) of the Privacy Act are set 
forth in the proposed rule.

List of Subjects in 39 CFR Part 266

    Privacy.

    For the reasons set out in the preamble, the Postal Service 
proposes to amend part 266 of 39 CFR as follows:

PART 266--PRIVACY OF INFORMATION

    1. The authority citation for part 266 continues to read as 
follows:

    Authority: 39 U.S.C. 401; 5 U.S.C. 552a.

    2. Section 266.9 is amended by adding paragraph (b)(7) to read as 
follows:


Sec. 266.9  Exemptions.

* * * * *
    (b) * * *
    (7) Finance Records-Suspicious Transaction Reports, USPS 050.080. 
This system is exempt from 5 U.S.C. 552a (c)(3), (d)(1)-(4), (e)(1), 
(e)(4)(G), (e)(4)(H), (e)(4)(I), and (f) to the extent that information 
in the system is subject to exemption pursuant to 5 U.S.C. 552a(k)(2) 
as material compiled for law enforcement purposes. The reasons for 
exemption follow.
    (i) Disclosure to the record subject pursuant to subsections (c)(3) 
or (d)(1)-(4) would violate the non-notification provision of the Bank 
Secrecy Act, 31 U.S.C. 5318(g)(2), under which the Postal Service is 
prohibited from notifying a transaction participant that a suspicious 
transaction report has been made. In addition, the access provisions of 
subsections (c)(3) and (d) would alert individuals that they have been 
identified as suspects or possible subjects of investigation and thus 
seriously hinder the law enforcement purposes underlying the suspicious 
transaction reports.
    (ii) This system is in compliance with subsection (e)(1), because 
maintenance of the records is required by law. Strict application of 
the relevance and necessity requirements of subsection (e)(1) to 
suspicious transactions would be impractical, however, because the 
relevance or necessity of specific information can often be established 
only after considerable analysis and as an investigation progresses.
    (iii) The requirements of subsections (e)(4)(G), (H), and (I) and 
subsection (f) do not apply because this system is exempt from the 
individual access and amendment provisions of subsection (d). 
Nevertheless, the Postal Service has published notice of the record 
source categories and the notification, access, and contest procedures.
    An appropriate revision of 39 CFR 266.9 to reflect the proposed 
change will be published if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-32960 Filed 12-26-00; 8:45 am]
BILLING CODE 7710-12-P