[Federal Register Volume 68, Number 110 (Monday, June 9, 2003)]
[Notices]
[Pages 34486-34489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14361]


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DEPARTMENT OF THE TREASURY

Bureau of the Public Debt


Privacy Act of 1974, as Amended; System of Records

AGENCY: Bureau of the Public Debt, Treasury

ACTION: Notice of Proposed Privacy Act System of Records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Bureau of the Public Debt (Public Debt) gives notice of a proposed 
system of records.

DATES: Comments must be received no later than July 9, 2003. The 
proposed system of records will be effective July 21, 2003 unless 
Public Debt receives comments which would result in a contrary 
determination.

ADDRESSES: Send any comments to the Disclosure Officer, Administrative

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Resource Center, Bureau of the Public Debt, Department of the Treasury, 
200 Third Street, Room 211, Parkersburg, WV 26101-5312. Copies of all 
written comments will be available for public inspection and copying at 
the Department of the Treasury Library, Room 1428, Main Treasury 
Building, Washington, DC 20220. Before visiting the library, you must 
call 202-622-0990 for an appointment. Also, you can download comments 
at the following World Wide Web address: ``http://www.publicdebt.treas.gov''

FOR FURTHER INFORMATION CONTACT: For information about Public Debt's 
anti-money laundering and fraud suppression program, contact the Fraud 
Inquiry Line at 304-480-8555. The phone line is administered by the 
Office of the Chief Counsel, Bureau of the Public Debt. For information 
about this document, contact the Office of the Chief Counsel, Bureau of 
the Public Debt, at 304-480-8692.

SUPPLEMENTARY INFORMATION: The mission of Public Debt is to borrow the 
money needed to operate the Federal Government and to account for the 
resulting debt. Public Debt is establishing the U.S. Treasury 
Securities Fraud Information System to: (1) Identify and monitor 
fraudulent and suspicious activity related to Treasury securities and 
other U.S. obligations; (2) ensure that Public Debt provides a timely 
and appropriate notification of a possible violation of law to law 
enforcement and regulatory agencies; (3) protect the Government and 
individuals from fraud and loss; (4) prevent the misuse of Treasury 
names and symbols on fraudulent instruments, and (5) compile summary 
reports, that conform with the spirit of the USA Patriot Act's anti-
terrorism financing provisions and the Bank Secrecy Act's anti-money 
laundering provisions and submit the reports to the Financial Crimes 
Enforcement Network (FinCEN).
    Public Debt has received widespread inquiries from entities and 
individuals who have been approached by parties in connection with 
offers of participation in various questionable securities practices 
and illegal financial instruments, some of which falsely use the 
Treasury name or symbol. Under 31 U.S.C. 321(a)(5), the Secretary of 
the Treasury has the general authority to ``prescribe regulations that 
the Secretary considers best calculated to promote the public 
convenience and security, and to protect the Government and individuals 
from fraud and loss, that apply to anyone who may: (A) receive for the 
Government, Treasury notes, United States notes, or other Government 
securities; or (B) be engaged or employed in preparing and issuing 
those notes or securities.'' In addition, under 31 U.S.C. 333(a), no 
person may use the Department of the Treasury names, symbols, etc. ``in 
a manner which could reasonably be interpreted or construed as 
conveying the false impression that such advertisement, solicitation, 
business activity, or product is in any manner approved, endorsed, 
sponsored, or authorized by, or associated with, the Department of the 
Treasury or any entity * * * (of the Department) * * * or any officer 
or employee thereof.'' See also, 31 CFR part 27, ``Civil Penalty 
Assessment for Misuse of Department of the Treasury Names, Symbols, 
Etc.'' Likewise, an ``obligation or security of the United States'' may 
not be photographed or reproduced, 31 CFR 103.52(a).
    To ensure that the Treasury name and its products are protected 
from fraudulent transactions, Public Debt proposes to maintain records 
on entities and individuals who are potentially involved in 
questionable or illegal transactions and practices relating to Treasury 
securities and other U.S. obligations. These records might, but do not 
necessarily have to, include allegations of administrative, civil or 
criminal misconduct, from any source.
    Public Debt sells Treasury bills, notes, and bonds as well as U.S. 
Savings Bonds to investors. In addition to maintaining records on 
questionable securities practices and illegal financial instruments, 
Public Debt proposes to maintain records on suspicious activities 
involving these legitimate Treasury products. Suspicious activity may 
be any information that Public Debt determines to have a high degree of 
usefulness in criminal, tax, and, regulatory investigations, or other 
proceedings, including credit card loss prevention programs.
    In particular, Public Debt intends to establish due diligence 
policies, procedures, and controls that aid in the detection and 
reporting of any attempt at money laundering involving Treasury 
securities. Treasury, as an issuer of government securities and a 
provider of related investment services, is not addressed in the anti-
terrorism and anti-money laundering provisions of the USA Patriot Act, 
the Bank Secrecy Act, or FinCEN's implementing regulations, 31 CFR part 
103. Nevertheless, consistent with the purposes of these Acts, Public 
Debt will take anti-terrorism and anti-money laundering measures, 
maintain records, and report certain suspicious transactions to 
appropriate authorities, including FinCEN.
    Pursuant to the Privacy Act of 1974, as amended, 5 U.S.C. 552a, 
Public Debt is proposing to establish the following new system of 
records: Treasury/BPD.009-U.S. Treasury Securities Fraud Information 
System.
    To assist Public Debt in its regulatory and oversight functions, 
this system will track complaints and inquiries concerning fraudulent 
or suspicious transactions related to Treasury securities and other 
U.S. obligations.
    Public Debt proposes to exempt records maintained in the system 
from certain of the Privacy Act's requirements pursuant to 5 U.S.C. 
552a(k)(2). A proposed rule to exempt this system from certain 
provisions of the Privacy Act will be published separately in the 
Federal Register.
    The new 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 I to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000.
    The proposed Public Debt system of records, U.S. Treasury 
Securities Fraud Information System, Treasury/BPD.009, is published in 
its entirety below.

    Dated: June 3, 2003.
W. Earl Wright, Jr.,
Chief Management and Administrative Programs Officer.
Treasury/BPD.009

System name:
    U.S. Treasury Securities Fraud Information System--Treasury/BPD.

System location:
    The system of records is located at the Bureau of the Public Debt 
in Parkersburg, WV and Washington DC as well as the Federal Reserve 
Banks of Boston, Buffalo, Chicago, Dallas, Kansas City, Philadelphia, 
Pittsburgh, Richmond, and Minneapolis. This system also covers Public 
Debt records that are maintained by contractor(s) under agreement. The 
system manager(s) maintain(s) the system location of these records. The 
address(es) of the contractor(s) may be obtained from the system 
manager(s) below.

Categories of individuals covered by the system:
    Individuals under investigation or who make inquiries or report 
fraudulent

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or suspicious activities related to Treasury securities and other U.S. 
obligations.

Categories of records in the system:
    The types of personal information collected/used by this system are 
necessary to ensure the accurate identification of individuals who 
report or make fraudulent transactions involving Treasury securities 
and other U.S. obligations. The types of personal information 
potentially could include the following:
    (1) Personal identifiers (name, including previous name used, and 
aliases; Social Security number; Tax Identification Number; physical 
and electronic addresses; telephone, fax, and pager numbers), and;
    (2) Authentication aids (personal identification number, password, 
account number, credit card number, shared-secret identifier, digitized 
signature, or other unique identifier).
    Supporting records may contain correspondence between Public Debt 
and the entity or individual submitting a complaint or inquiry, 
correspondence between Public Debt and the Department of Treasury, or 
correspondence between Public Debt and law enforcement, regulatory 
bodies, or other third parties.

Authority for maintenance of the system:
    31 U.S.C. 321(a)(5), 31 U.S.C. 333, 31 U.S.C. 3101, et seq. 31 
U.S.C. 5318, and 5 U.S.C. 301.

Purpose(s):
    Records in this system are used to: (1) Identify and monitor 
fraudulent and suspicious activity related to Treasury securities and 
other U.S. obligations; (2) ensure that Public Debt provides a timely 
and appropriate notification of a possible violation of law to law 
enforcement and regulatory agencies; (3) protect the Government and 
individuals from fraud and loss; (4) prevent the misuse of Treasury 
names and symbols on fraudulent instruments; and, (5) compile summary 
reports, that conform with the spirit of the USA Patriot Act's anti-
terrorism financing provisions and the Bank Secrecy Act's anti-money 
laundering provisions, and submit the reports to the Financial Crimes 
Enforcement Network (FinCEN).

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    These records may be disclosed to:
    (1) Congressional offices in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (2) 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 a potential 
violation of civil or criminal law or regulation;
    (3) 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 or in connection with criminal law proceedings or in 
response to a subpoena;
    (4) Third parties during the course of an investigation to the 
extent necessary to obtain information pertinent to the investigation;
    (5) Agents or contractors who have been engaged to assist Public 
Debt in the performance of a service related to this system of records 
and who need to have access to the records in order to perform the 
activity;
    (6) The Department of Justice when seeking legal advice or when (a) 
the Department of the Treasury or (b) Public Debt, or (c) any employee 
of the agency in his or her official capacity, or (d) any employee of 
the agency in his or her individual capacity where the Department of 
Justice has agreed to represent the employee, or (e) the United States, 
where the agency determines that litigation is likely to affect the 
agency, is a party to litigation or has an interest in such litigation, 
and the use of such records by the Department of Justice is deemed by 
the agency to be relevant and necessary to the litigation.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained on electronic media, multiple client-server 
platforms that are backed-up to magnetic tape or other storage media, 
and/or hard copy.

Retrievability:
    Records may be retrieved by (name, alias name, Social Security 
number, Tax Identification Number, account number, or other unique 
identifier).

Safeguards:
    These records are maintained in controlled access areas. 
Identification cards are verified to ensure that only authorized 
personnel are present. Electronic records are protected by restricted 
access procedures, including the use of passwords and sign-on protocols 
which are periodically changed. Only employees whose official duties 
require access are allowed to view, administer, and control these 
records. Copies of records maintained on computer have the same limited 
access as paper records.

Retention and disposal:
    Records are maintained in accordance with National Archives and 
Records Administration retention schedules. Paper and microform records 
ready for disposal are destroyed by shredding or maceration. Records in 
electronic media are electronically erased using accepted techniques.

System manager(s) and address:
    (1) Assistant Commissioner, Office of Information Technology, 
Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26101
    (2) Assistant Commissioner, Office of Investor Services, Bureau of 
the Public Debt, 200 Third Street, Parkersburg, WV 26101
    (3) Assistant Commissioner, Office of Securities Operations, Bureau 
of the Public Debt, 200 Third Street, Parkersburg, WV 26101
    (4) Chief Counsel, Office of Chief Counsel, Parkersburg Division, 
Bureau of the Public Debt, 200 Third Street, Parkersburg, WV 26101

Notification procedure:
    This system of records is exempt from the Privacy Act provision on 
notification procedures. (See ``Exemptions Claimed for the System,'' 
below.) An individual wishing to be notified if he or she is named in 
non-exempt records maintained in this system must submit a written 
request to the Disclosure Officer. See 31 CFR part 1, Subpart C, 
appendix I.
    Identification Requirements: An individual seeking notification 
through the mail must establish his or her identity by providing a 
signature and an address as well as one other identifier bearing the 
individual's name and signature (such as a photocopy of a driver's 
license or other official document). An individual seeking notification 
in person must establish his or her identity by providing proof in the 
form of a single official document bearing a photograph (such as a 
passport or identification badge) or two items of identification that 
bear both a name and signature.
    Alternatively, identity may be established by providing a notarized 
statement, swearing or affirming to an individual's identity, and to 
the fact that the individual understands the penalties provided in 5 
U.S.C. 552a(i)(3) for requesting or obtaining information under false 
pretenses.

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    Additional documentation establishing identity or qualification for 
notification may be required, such as in an instance where a legal 
guardian or representative seeks notification on behalf of another 
individual.

Record access procedures:
    This system of records is exempt from the Privacy Act provision on 
record access procedures. (See ``Notification Procedure'' above.)

Contesting record procedures:
    This system of records is exempt from the Privacy Act provision on 
contesting record procedures. (See ``Notification Procedure'' above.)

Record source categories:
    This system of records is exempt from the Privacy Act provision 
which requires that record source categories be reported. (See 
``Exemptions Claimed for the System,'' below.)

Exemptions claimed for the system:
    Records maintained in this system have been designated as exempt 
from 5 U.S.C. 552a(c)(3), (d)(1), (2), (3), and (4), (e)(1), (e)(4)(G), 
(H), and (I), and (f) of the Privacy Act pursuant to 5 U.S.C. 
552a(k)(2). See 31 CFR 1.36.

[FR Doc. 03-14361 Filed 6-6-03; 8:45 am]
BILLING CODE 4810-39-P