[Federal Register Volume 67, Number 101 (Friday, May 24, 2002)]
[Notices]
[Pages 36669-36671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13053]


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DEPARTMENT OF THE TREASURY


Financial Crimes Enforcement Network Privacy Act of 1974; Systems 
of Records

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Notice of alterations to two Privacy Act systems of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Financial Crimes Enforcement Network (FinCEN), Department of the 
Treasury (Treasury), gives notice of proposed alterations to existing 
systems of records entitled the ``Suspicious Activity Reporting System-
-Treasury/DO .212'' and the ``Bank Secrecy Act Reports System--
Treasury/DO .213''. The systems of records were last published in their 
entirety on February 19, 2002, at 67 FR 7496, and 67 FR 7498, 
respectively.

DATES: Comments must be received no later than June 24, 2002. The 
revised systems of records will be effective as of July 3, 2002, unless 
comments are received that result in a contrary determination and 
notice is published to that effect.

ADDRESSES: Written comments should be sent to: FinCEN, P.O. Box 39, 
Vienna, VA 22183-0039, Attention: Revisions to PA Systems of Records--
Comments. Comments may also be submitted by electronic mail to the 
following Internet [email protected] the 
above caption in the body of the text. Comments may be inspected at 
FinCEN between 10 a.m. and 4 p.m., in the FinCEN Reading Room in 
Washington, DC. Persons wishing to inspect the comments submitted must 
request an appointment by telephoning (202) 354-6400.

FOR FURTHER INFORMATION CONTACT: Albert R. Zarate, Senior Regulatory 
Counsel, Office of Chief Counsel, FinCEN, (703) 905-3590.

SUPPLEMENTARY INFORMATION: The systems of records contain information 
collected under the authority of the Bank Secrecy Act, the popular name 
for Titles I and II of Public Law 91-508, as amended, and codified at 
12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5331. The 
regulations implementing the authority contained in the Bank Secrecy 
Act are found at 31 CFR part 103. The authority to administer 31 CFR 
part 103 has been delegated to FinCEN.
    The systems of records are being revised to reflect certain changes 
in the law made by the Uniting and Strengthening America by Providing 
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA 
PATRIOT) Act of 2001, Public Law 107-56 (October 26, 2001). The USA 
PATRIOT Act, among other things, provides the Treasury with additional 
authorities relating to the collection, use, and dissemination of 
information, including Bank Secrecy Act information, to help prevent, 
detect, and prosecute money laundering and the financing of terrorism.
    Specifically, the routine uses for the systems of records are being 
amended, consistent with section 358 of the USA PATRIOT Act, to make 
clear that Bank Secrecy Act information may be provided to United 
States intelligence agencies for the purpose of conducting intelligence 
or counterintelligence, including analysis, to protect against 
international terrorism.
    The Suspicious Activity Reporting System also is being altered, 
consistent with section 314 of the USA PATRIOT Act, to reflect that it 
may contain information relating to individuals, entities, and 
organizations reasonably suspected of engaging in terrorist and other 
criminal activities, including information provided to FinCEN from 
financial institutions regarding such individuals, entities, and 
organizations. Existing routine use (7) for the Suspicious Activity 
Reporting System would permit FinCEN to disclose information within 
that System to financial institutions to the extent necessary to elicit 
information pertinent to the investigation, prosecution, or enforcement 
of civil or criminal statutes, rules, regulations, or orders.
    The Bank Secrecy Act Reports System also is being amended, 
consistent with section 358 of the USA PATRIOT Act, to reflect that BSA 
reports may be provided to appropriate self-regulatory organizations 
when relevant to the responsibilities of those organizations. Existing 
routine use (3) for the Suspicious Activity Report System already 
contains similar language.
    Finally, the Bank Secrecy Act Reports System also is being amended 
to clarify that FinCEN Form 8300 information reported under the Bank 
Secrecy Act and its implementing regulations, as authorized by section 
365 of the USA PATRIOT Act, is covered by that system. For purposes of 
clarity, other technical changes to the systems of records are being 
made, as indicated later in this document.
    Because information in the systems of records may be retrieved by 
personal identifier, the Privacy Act of 1974 requires the Treasury to 
give general notice and seek public comments when making substantive 
changes to these Systems.
    The altered system of records report, as required by 5 U.S.C. 
552a(r), has been submitted to the Committee on Government Reform in 
the House of Representatives, the Committee on Governmental Affairs in 
the Senate, and Office of Management and Budget, pursuant to Appendix I 
to OMB Circular A-130, ``Federal Agency Responsibilities for 
Maintaining Records About Individuals,'' November 30, 2000.
    For the reasons set forth above, FinCEN proposes to alter the 
Suspicious Activity Reporting System and the Bank Secrecy Act Reports 
System as follows:
TREASURY/DO .212

SYSTEM NAME:
    Suspicious Activity Report System (the ``SAR System'')--Treasury/
DO.

SYSTEM LOCATION:
    Description of change: Delete the existing sentence in this 
paragraph and in its place add the following language:

[[Page 36670]]

The Internal Revenue Service Detroit Computing Center, 985 Michigan 
Avenue, Detroit, Michigan 48226-1129 and the Financial Crimes 
Enforcement Network (``FinCEN''), P.O. Box 39, Vienna, VA 22183-0039.''

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
* * * * *
    Description of change: In category (2)(b) of this paragraph, 
replace the words ``31 U.S.C. 5311, et seq.'' with the words ``31 
U.S.C. 5311-5331.'' The word ``and'' at the end of category (8) is 
removed. The period ``.'' at the end of category (9) is replaced with a 
semicolon (;) and categories (10), (11) and (12) are added to read as 
follows:
    ``(10) Individuals, entities and organizations suspected of 
engaging in terrorist and other criminal activities and any person who 
may be affiliated with such individuals, entities or organizations;
    (11) Individuals or entities named by financial institutions as 
persons to be contacted for further assistance by government agencies 
in connection with individuals, entities or organizations suspected of 
engaging in terrorist or other criminal activities;
    (12) Individuals or entities involved in evaluating or 
investigating any matters in connection with individuals, entities or 
organizations suspected of engaging in terrorist or other criminal 
activity.''

CATEGORIES OF RECORDS IN THE SYSTEM:
    Description of change: Delete the first sentence of this paragraph 
and in its place add the following language to read as follows:
    ``The SAR System contains information reported to FinCEN by a 
financial institution (including, but not limited to, a depository 
institution, a money services business, a broker-dealer in securities, 
and a casino) on a Suspicious Activity Report (``SAR'') that is filed 
voluntarily or as required under the authority of FinCEN, one or more 
of the Federal Supervisory Agencies, or under any other authority. The 
SAR System also may contain information that may relate to terrorist or 
other criminal activity that is reported voluntarily to FinCEN by any 
individual or entity through any other means, including through 
FinCEN's Financial Institutions Hotline. The SAR System also may 
contain information relating to individuals, entities, and 
organizations reasonably suspected based on credible evidence of 
engaging in terrorist or other criminal activities, including 
information provided to FinCEN from financial institutions regarding 
such individuals, entities, and organizations.''
* * * * *

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Description of change: Replace the words ``Department of the 
Treasury Order 105-08'' with the words ``31 U.S.C. 310''.
* * * * *

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
* * * * *
    Description of change: The word ``and'' at the end of routine use 
(11) is removed. The period ``.'' at the end of routine use (12) is 
replaced with a semicolon (;), and routine use (13) is added to read as 
follows:
    ``(13) Disclose information to United States intelligence agencies 
in the conduct of intelligence or counterintelligence activities, 
including analysis, to protect against international terrorism.''
* * * * *
TREASURY/DO .213

SYSTEM NAME:
    Bank Secrecy Act Reports System--Treasury/DO.
* * * * *

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Description of change: The first sentence of this paragraph is 
revised to read as follows:
    ``Persons identified in reports 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), forms 
filed by casinos located in the State of Nevada in lieu of Form 8362, 
FinCEN Form 8300 (Report of Cash Payments Over $10,000 Received in a 
Trade or Business), 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), Treasury Form 
TDF 90-22.53 (Designation of Exempt Person), and Treasury Form TDF 90-
22.55 (Registration of Money Services Businesses).''
* * * * *

CATEGORIES OF RECORDS IN THE SYSTEM:
    Description of change: The first sentence of this paragraph is 
revised to read as follows:
    ``Information or reports 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), forms filed by 
casinos located in the State of Nevada in lieu of Form 8362, FinCEN 
Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or 
Business), 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), Treasury Form TDF 90-22.53 
(Designation of Exempt Person), and Treasury Form TDF 90-22.55 
(Registration of Money Services Businesses).''
* * * * *

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Description of change: Replace the words ``31 U.S.C. 5311-5314, 
5316 et seq.'' with the words ``31 U.S.C. 5311-5331'' and replace the 
words ``Treasury Department Order No. 105-08'' with the words ``31 
U.S.C. 310''.

PURPOSES:
    Description of Change: In the first sentence of this paragraph, 
replace the words ``31 U.S.C. 5311-5314, 5316, et seq'' with the words 
``31 U.S.C. 5311-5331'' and add the words ``, or in the conduct of 
intelligence or counterintelligence activities, including analysis, to 
protect against international terrorism'' before the period.
* * * * *

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
* * * * *
    Description of changes: a. Delete the current text of routine use 
(4) and in its place add the following to read as follows:
    ``Provide information or records to any appropriate domestic or 
non-United States governmental agency or self-regulatory organization 
charged with the responsibility of administering law or investigating 
or prosecuting violations of law, or charged with the responsibility of 
enforcing or implementing a statute, rule, regulation, order, or 
policy, when relevant to the responsibilities of these agencies or 
organizations;''
* * * * *
    b. The word ``and'' at the end of routine use (7) is removed. The 
period ``.'' at the end of routine use (8) is replaced with a semicolon 
(;), and

[[Page 36671]]

routine use (9) is added to read as follows:
    ``(9) Provide information or records to United States intelligence 
agencies in the conduct of intelligence or counterintelligence 
activities, including analysis, to protect against international 
terrorism.''
* * * * *

    Dated: April 8, 2002.
W. Earl Wright, Jr.,
Chief Management and Administrative Programs Officer.
[FR Doc. 02-13053 Filed 5-23-02; 8:45 am]
BILLING CODE 4810-02-P