[Federal Register Volume 66, Number 67 (Friday, April 6, 2001)]
[Rules and Regulations]
[Pages 18192-18193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8511]


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DEPARTMENT OF THE TREASURY

31 CFR Part 1


Departmental Offices; Privacy Act of 1974; Implementation

AGENCY: Department of the Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury is amending its Privacy Act 
exemption rules which were published on November 21, 2000, which 
consolidated the regulations issued pursuant to 5 U.S.C. 552a(j) and 
(k) exempting one or more systems of records established on behalf of 
each bureau by the Department.

EFFECTIVE DATE: April 6, 2001.

ADDRESSES: Inquiries may be addressed to Department of the Treasury, 
Disclosure Services, Washington, DC 20220.

FOR FURTHER INFORMATION CONTACT: Dale Underwood, Deputy Assistant 
Director, Disclosure Services, (202) 622-0930.

SUPPLEMENTARY INFORMATION: On November 21, 2000, the Department of the 
Treasury published a final rule, at 65 FR 69865, amending its 
regulations issued pursuant to 5 U.S.C. 552a (j) and (k).
    As noted in the rule, the Privacy Act of 1974 at subsection (k), 
authorizes the head of an agency to promulgate rules in accordance with 
the Administrative Procedure Act to exempt any system of records within 
the agency from subsections (c)(3), (d), (e)(1), (e)(4)(G), (H), and 
(I) and (f) of this section 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.
    Disclosure Services received a comment about the final rule which 
contended that paragraph (h) of the final rule did not effectively 
reflect that the (k)(2) exemption attaches to civil as well as criminal 
investigatory materials and therefore, did not fully communicate the 
reasons for which the (k)(2) exemption has been claimed since 1975. The 
comments suggested that paragraph (h) could be read to limit the 
availability of the (k)(2) exemption to only those records which 
pertain to a criminal investigation, an arrest for criminal conduct, or 
law enforcement activities of a criminal investigator. We agree with 
that assessment, and language is being added to paragraph (h) which 
will more fully reflect the protection afforded records relating to the 
enforcement of civil and administrative laws as permitted by the Act. 
The amendments underscore the difference between the protection of 
Privacy Act records collected for the enforcement of criminal laws by 
such Treasury bureaus as ATF and Secret Service pursuant to 5 U.S.C. 
552a(j)(2), and the protection of Privacy Act records collected for 
non-criminal law enforcement purposes by the Comptroller of the 
Currency, Office of Foreign Assets Control, or other Treasury offices 
as permitted by 5 U.S.C. 552a(k)(2).
    These regulations are being published as a final rule because the 
amendment does not impose any requirements on any member of the public. 
This amendment is the most efficient means for the Treasury Department 
to implement its internal requirements for complying with the Privacy 
Act.
    Accordingly, pursuant to the administrative procedure provisions in 
5 U.S.C. 553, the Department of the Treasury finds good cause that 
prior notice and other public procedure with respect to this rule are 
impracticable and unnecessary and finds good cause for making this rule 
effective on the date of publication in the Federal Register.
    In accordance with Executive Order 12866, it has been determined 
that this final rule is not a ``significant regulatory action'' and, 
therefore, does not require a Regulatory Impact Analysis.
    The regulation will not have a substantial direct effect on the 
States, on the relationship between the national Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, it is determined that this 
final rule does not have federalism implications under Executive Order 
13132.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.
    In accordance with the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.), the Department of the Treasury has 
determined that this final rule will not impose new record-keeping, 
application, reporting, or other types of information collection 
requirements.

List of Subjects in 31 CFR Part 1

    Privacy.

    Part 1 Subpart C of title 31 of the Code of Federal Regulations is 
amended as follows:

PART 1--[AMENDED]

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

    Authority: 5 U.S.C. 301 and 31 U.S.C. 321. Subpart A also issued 
under 5 U.S.C. 552 as amended. Subpart C also issued under 5 U.S.C. 
552a.
    2. Section 1.36 is amended as follows:
    a. Paragraphs (h)(1)(i) and (ii) are revised,
    b. Paragraph (h)(2) introductory text is amended by revising the 
second sentence;
    c. Paragraphs (h)(2)(i)(A), (B), (C) and (ii) are revised;
    d. Paragraph (h)(2)(iii) is amended by revising the second 
sentence;
    e. Paragraph (h)(2)(iv) is revised;
    f. Paragraph (h)(4) introductory text is amended by revising the 
third sentence;
    g. Paragraph (h)(6) introductory text is amended by revising the 
second sentence; and
    h. Paragraph (h)(6)(iii) is revised.
    The revisions to Sec. 1.36 read as follows:


Sec. 1.36  Systems exempt in whole or in part from provisions of 5 
U.S.C. 522a and this part.

* * * * *
    (h) * * *
    (1) * * *
    (i) The application of this provision would impair the ability of 
the Department and of law enforcement agencies outside the Department 
of the Treasury to make effective use of information maintained by the 
Department. Making accountings of disclosures available to the subjects 
of an investigation would alert them to the fact that an agency is 
conducting an investigation into their illegal activities and could 
reveal the geographic location of the investigation, the nature and 
purpose of that investigation, and the dates on which that 
investigation was active. Violators possessing such knowledge would be 
able to take measures to avoid detection or apprehension by altering 
their

[[Page 18193]]

operations, by transferring their illegal activities to other 
geographical areas, or by destroying or concealing evidence that would 
form the basis for detection or apprehension. In the case of a 
delinquent account, such release might enable the subject of the 
investigation to dissipate assets before levy.
    (ii) Providing accountings to the subjects of investigations would 
alert them to the fact that the Department has information regarding 
their illegal activities and could inform them of the general nature of 
that information.
* * * * *
    (2) * * * The application of these provisions to the systems of 
records would compromise the Department's ability to utilize and 
provide useful tactical and strategic information to law enforcement 
agencies.
    (i) * * *
    (A) discovering the facts that would form the basis for their 
detection or apprehension;
    (B) enabling them to destroy or alter evidence of illegal conduct 
that would form the basis for their detection or apprehension, and
    (C) using knowledge that investigators had reason to believe that a 
violation of law was about to be committed, to delay the commission of 
the violation or commit it at a location that might not be under 
surveillance.
    (ii) Permitting access to either on-going or closed investigative 
files would also reveal investigative techniques and procedures, the 
knowledge of which could enable individuals planning non-criminal acts 
to structure their operations so as to avoid detection or apprehension.
    (iii) * * * Confidential sources and informers might refuse to 
provide investigators with valuable information unless they believed 
that their identities would not be revealed through disclosure of their 
names or the nature of the information they supplied. * * *
    (iv) Furthermore, providing access to records contained in the 
systems of records could reveal the identities of undercover law 
enforcement officers or other persons who compiled information 
regarding the individual's illegal activities and thereby endanger the 
physical safety of those undercover officers, persons, or their 
families by exposing them to possible reprisals.
    (4) * * * The application of this provision to the system of 
records could impair the Department's ability to collect, utilize and 
disseminate valuable law enforcement information.
* * * * *
    (6) * * * The application of this provision to the systems of 
records could compromise the Department's ability to complete or 
continue investigations or to provide useful information to law 
enforcement agencies, since revealing sources for the information 
could:
* * * * *
    (iii) Cause informers to refuse to give full information to 
investigators for fear of having their identities as sources disclosed.
* * * * *

    Dated: March 30, 2001.
W. Earl Wright, Jr.,
Chief Management and Administrative Programs Officer.
[FR Doc. 01-8511 Filed 4-5-01; 8:45 am]
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