[Federal Register Volume 69, Number 84 (Friday, April 30, 2004)]
[Notices]
[Pages 23854-23855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9814]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Privacy Act of 1974, as Amended; System of Records

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice of proposed new 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 Department of Treasury, Internal 
Revenue Service, gives notice of a proposed new system of records 
entitled ``Treasury/IRS 42.031--Anti-Money Laundering/Bank Secrecy Act 
(BSA) and Form 8300 Records.''

DATES: Comments must be received no later than June 1, 2004. This new 
system of records will be effective June 9, 2004, unless the IRS 
receives comments that would result in a contrary determination.

ADDRESSES: Comments should be sent to the Office of Governmental 
Liaison and Disclosure, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC 20224. Comments will be made available for 
inspection and copying upon request in the Freedom of Information 
Reading Room (1621), at the above address.

FOR FURTHER INFORMATION CONTACT: Maureen Sanders, National Anti-Money 
Laundering Program Manager S:C:CP:RE:AML, 19th Floor, 1601 Market 
Street, Philadelphia, PA 19106. Phone: (215) 861-1547.

SUPPLEMENTARY INFORMATION: The strategic outcome for the IRS Anti-Money 
Laundering (AML) Program is to increase compliance of non-bank 
financial institutions and non-financial trades and businesses 
(including the individuals who operate these institutions, trades, and 
businesses) with the registration, reporting and recordkeeping 
requirements of the Bank Secrecy Act and I.R.C. Sec. 6050I.
    To accomplish this strategic outcome, the IRS will be monitoring 
compliance with these obligations, educating individuals and businesses 
where patterns of noncompliance have been identified, and taking 
enforcement actions where necessary. A proposed rule to exempt the 
system of records from provisions of the Privacy Act pursuant to 5 
U.S.C. 552a(k)(2) is being 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 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 new system of records entitled ``Treasury/IRS 42.031--
Anti-Money Laundering/Bank Secrecy Act (BSA) and Form 8300 Records'' is 
published in its entirety below.

    Dated: April 21, 2004.
Jesus Delgado-Jenkins,
Acting Assistant Secretary for Management.
TREASURY/IRS 42.031

System name:
    Anti-Money Laundering/Bank Secrecy Act (BSA) and Form 8300 Records.

System location:
    Internal Revenue Service, Detroit Computing Center, 985 Michigan 
Avenue, Detroit, MI 48226, and IRS Area Offices. (See IRS appendix A 
for addresses.)

Categories of individuals covered by the system:
    (1) Individuals whose businesses provide any of the financial 
services which subject them to the reporting, recordkeeping or 
registration requirements of the laws commonly known as the Bank 
Secrecy Act (BSA), or the related reporting and recordkeeping 
requirements of I.R.C. Sec. 6050I, (2) individuals acting as employees, 
owners or customers of such institutions or involved, directly or 
indirectly, in any transaction with such institutions. Examples of 
institutions that offer financial services are: currency dealers, check 
cashiers, money order or traveler's check issuers, sellers, or 
redeemers, casinos, card clubs, and other money transmitters, and (3) 
persons who may be witnesses or may otherwise be providing information 
concerning these individuals.

Categories of records in the system:
    Records may be paper or electronic, relating to the administration 
of the IRS anti-money laundering program including the registration, 
reporting and recordkeeping requirements of the BSA and I.R.C. Sec. 
6050I. They may also relate to individuals who, based upon certain 
tolerances, exhibit patterns of financial transactions suggesting 
noncompliance with the registration, reporting and recordkeeping 
requirements of the BSA and I.R.C. Sec. 6050I. Records may also relate 
to IRS administrative actions, such as notification, educational 
efforts, compliance examination results, and civil or criminal 
referrals.

Authority for maintenance of the system:
    5 U.S.C. 301; 31 U.S.C. 5311-5332; 26 U.S.C. 6050I, 7801, and 7803.

Purpose:
    The purpose of the system is for IRS to administer 26 U.S.C. 6050I 
and 31 U.S.C. 5311 et seq. to promote compliance with anti-money 
laundering laws. These records will also be used to prepare periodic 
reports for the Department and Congress.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such use:
    Disclosure of returns and return information may be made only as 
provided by 26 U.S.C. 6103. Records other than returns and return 
information may be disclosed:
    (1) To the Department of Justice for the purpose of litigating an 
action and seeking legal advice;

[[Page 23855]]

    (2) 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 Service becomes aware of an indication of a 
potential violation of civil or criminal law or regulation, or the use 
is required in the conduct of intelligence or counterintelligence 
activities, including analysis, to protect against international 
terrorism;
    (3) To a Federal, State or local agency maintaining civil, 
criminal, or other relevant enforcement information or other pertinent 
information, which has requested information relevant to or necessary 
to the requesting agency's or the bureau's hiring or retention of an 
individual or issuance of a security clearance, license, contract, 
grant, or other benefit;
    (4) In a proceeding before a court, adjudicative body, or other 
administrative body, before which the agency is authorized to appear 
when: (a) The agency, or (b) any employee of the agency in his or her 
official capacity, or (c) any employee of the agency in his or her 
individual capacity where the Department of Justice or the agency has 
agreed to represent the employee, or (d) the United States, when the 
agency determines that the 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 agency is deemed to be relevant and 
necessary and not otherwise privileged;
    (5) To a congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (6) To the news media in accordance with guidelines contained in 28 
CFR 50.2 which relate to an agency's functions relating to civil and 
criminal proceedings, unless release would constitute an unwarranted 
invasion of personal privacy;
    (7) To third parties during the course of an investigation to the 
extent necessary to obtain information pertinent to the investigation;
    (8) To any agency, including any State financial institutions 
supervisory agency, United States intelligence agency or self-
regulatory organization registered with the Securities and Exchange 
Commission or the Commodity Futures Trading Commission, upon written 
request of the head of the agency or organization. The records shall be 
available for a purpose that is consistent with title 31, as required 
by 31 U.S.C. 5319; and
    (9) To representatives of the National Archives and Records 
Administration (NARA) who are conducting records management inspections 
under authority of 44 U.S.C. 2904 and 2906.

Policies and practices for storing, retrieving, accessing, retaining 
and disposing of records in this system:
Storage:
    Paper, electronic, and magnetic media.

Retrievability:
    Name and Taxpayer Identification Number (Social Security Number or 
Employee Identification Number).

Safeguards:
    Access controls will not be less than those provided for by the 
Managers Security Handbook IRM 1.16 and the Automated Information 
System Security Handbook IRM 25.10.2.

Retention and disposal:
    Record retention will be in accordance with the National Archives 
and Records Administration Regulations Part 1228, Subpart B--Scheduling 
Records.

System manager(s) and address:
    Official prescribing policies and practices--Commissioner, Small 
Business/Self-Employed Division, New Carrollton Federal Building, 
Lanham, MD.

Notification procedure:
    This system of records may not be accessed for purposes of 
determining if the system contains a record pertaining to a particular 
individual.

Record access procedures:
    This system of records may not be accessed for purposes of 
inspection or for contest of content of records.

Contesting record procedures:
    26 U.S.C. 7852(e) prohibits Privacy Act amendment of tax records. 
Title 31 records may only be contested under the provisions of title 
31.

Source categories:
    The system contains material for which sources need not be 
reported.

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. 04-9814 Filed 4-29-04; 8:45 am]
BILLING CODE 4830-01-P