[Federal Register Volume 76, Number 175 (Friday, September 9, 2011)]
[Proposed Rules]
[Pages 55839-55840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22979]


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DEPARTMENT OF THE TREASURY

Office of the Secretary

31 CFR Part 1

RIN 1505-AC31


Privacy Act of 1974; Proposed Implementation

AGENCY: Departmental Offices, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, the Department of the Treasury gives notice of a proposed 
amendment to this part to exempt a system of records from certain 
provisions of the Privacy Act.

DATES: Comments must be received no later than October 11, 2011.

ADDRESSES: Written comments should be sent to the Department of the 
Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania 
Avenue, NW., Washington, DC 20220. The Department will make such 
comments available for public inspection and copying in the 
Department's Library, Room 1428, Main Treasury Building, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220, on official business 
days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make 
an appointment to inspect comments by telephoning (202) 622-0990 (not a 
toll-free line). You may also submit comments through the Federal 
rulemaking portal at http://www.regulations.gov (follow the 
instructions for submitting comments). All comments, including 
attachments and other supporting materials, received are part of the 
public record and subject to public disclosure. You should submit only 
information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Mariam G. Harvey, Department of the 
Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, at (202) 
622-0316, (202) 622-0367 (fax), or via electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 552a(k)(2), the head of a 
Federal 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).'' To the extent 
that this system of records contain investigative material within the 
provision of 5 U.S.C. 552a(k)(2), the Department of the Treasury 
proposes to exempt the Treasury .013--Department of the Treasury Civil 
Rights Complaints and Compliance Review Files, from various provisions 
of the Privacy Act pursuant to 5 U.S.C. 552a(k)(2).
    The proposed rule will create a new table in paragraph 31 CFR 
1.36(g)(1) under the heading designated as ``(i) Treasury.'' The system 
of records entitled ``Treasury .013--Department of the Treasury Civil 
Rights Complaints and Compliance Review Files'' will be added to the 
table under (i). The current heading ``Departmental Offices:'' and the 
associated table will be designated as ``(ii).'' Paragraphs (ii) 
through (xiii) are re-designated (iii) through (xiv) respectively.
    The Department of the Treasury (Treasury) is publishing the notice 
of the new system of records separately in the Federal Register.
    The proposed exemption under 5 U.S.C. 552a(k)(2) for the above 
system of records is from provisions 5 U.S.C. 552a(c)(3), (d)(1), 
(d)(2), (d)(3), (d)(4), (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and 
(f). Exemptions from these particular subsections are justified on a 
case-by-case basis to be determined at the time a request is made for 
the following reasons:
    1. 5 U.S.C. 552a(c)(3) requires an agency to make accountings of 
disclosures of a record available to the individual named in the record 
upon his or her request. The accountings must state the date, nature, 
and purpose of disclosures of the record and the names and addresses of 
recipients. Making accountings of disclosures available to the subjects 
of investigations would alert them to the fact that an investigation is 
being conducted into their activities as well as identify the nature, 
scope, and purpose of that investigation. The subjects of 
investigations, if provided an accounting of disclosures, would be able 
to take measures to avoid detection or apprehension by destroying or 
concealing evidence that would form the basis for detection or 
apprehension.
    2. 5 U.S.C. 552a(d)(1), (e)(4)(H), and (f)(2), (3), and (5) grant 
individual access, or concern procedures by which an individual may 
gain access, to records pertaining to themselves. Disclosure of this 
information to the subjects of investigations would provide individuals 
with information concerning the nature and scope of any current 
investigation, may enable them to avoid detection or apprehension, may 
enable them to destroy or alter evidence of criminal conduct that would 
form the basis for their arrest, and could impede the investigator's 
ability to investigate the matter. In addition, permitting access to 
investigative files and records

[[Page 55840]]

could disclose the identity of confidential sources and the nature of 
the information supplied by informants as well as endanger the physical 
safety of those sources by exposing them to possible reprisals for 
having provided the information. Confidential sources and informers 
might refuse to provide valuable information unless they believe that 
their identities would not be revealed through disclosure of their 
names or the nature of the information they supplied. Loss of access to 
such sources would seriously impair the investigator's ability to 
perform its law enforcement responsibilities. Furthermore, providing 
access to records contained in the system of records could reveal the 
identities of undercover law enforcement officers who compiled 
information regarding the individual's criminal activities, thereby 
endangering the physical safety of those undercover officers by 
exposing them to possible reprisals. Permitting access in keeping these 
provisions would also discourage other law enforcement and regulatory 
agencies, foreign or domestic, from freely sharing information and thus 
would restrict access to information necessary to accomplish it mission 
most effectively.
    3. 5 U.S.C. 552a(d)(2), (3), and (4), (e)(4)(H), and (f)(4) permit 
an individual to request amendment of a record pertaining to the 
individual or concern related to procedures, and require the agency 
either to amend the record or to note the disputed portion of the 
record, and to provide a copy of the individual's statement of 
disagreement with the agency's refusal to amend a record to persons or 
other agencies to whom the record is thereafter disclosed. Since these 
provisions depend upon the individual having access to his or her 
records, and since an exemption from the provisions of 5 U.S.C. 552a 
relating to access to records is proposed for the reasons set out in 
the preceding paragraph of this section, these provisions should not 
apply to the above-listed system or records.
    4. 5 U.S.C. 552a(e)(1) requires an agency to maintain in its 
records only such information about an individual as is relevant and 
necessary to accomplish a purpose of the agency required to be 
accomplished by statute or Executive Order. The term ``maintain,'' as 
defined in 5 U.S.C. 552a(a)(3), includes ``collect'' and 
``disseminate.'' The application of this provision could impair the 
investigator's ability to collect and disseminate valuable law 
enforcement information. In the early stages of an investigation, it 
may be impossible to determine whether information collected is 
relevant and necessary, and information that initially appears 
irrelevant and information developed subsequently, prove particularly 
relevant and necessary to the investigation. Compliance with the above 
records maintenance requirements would require the periodic up-dating 
of information Treasury collects and maintains to ensure that the 
records in this system remain timely, accurate, and complete. Further, 
the investigator may uncover evidence of violations of law that fall 
within the investigative jurisdiction of other law enforcement 
agencies. To promote effective law enforcement, the investigator will 
refer this evidence to the appropriate authority for further 
investigation.
    5. 5 U.S.C. 552a(e)(4)(G) and (f)(1) enable individuals to inquire 
whether a system of records contains records pertaining to them. 
Application of these provisions to the above-referenced systems of 
records could allow individuals to learn whether they have been 
identified as subjects of investigation. Access to such knowledge would 
impair the investigator's ability to carry out the mission, since 
individuals could take steps to avoid detection and destroy or hide 
evidence needed to prove the violation.
    6. 5 U.S.C. 552a(e)(4)(I) requires an agency to publish a general 
notice listing the categories of sources for information contained in a 
system of records. Revealing sources for information could disclose 
investigative techniques and procedures; result in threats or reprisals 
against confidential informants by the subjects of investigations; and 
cause confidential informants to refuse to give full information to 
investigators for fear of having their identities as sources disclosed.
    As required by Executive Order 12866, it has been determined that 
this rule is not a significant regulatory action, and therefore, does 
not require a regulatory impact analysis.
    Pursuant to the requirements of the Regulatory Flexibility Act 
(RFA), 5 U.S.C. 601-612, it is hereby certified that this rule will not 
have significant economic impact on a substantial number of small 
entities. The term ``small entity'' is defined to have the same meaning 
as the terms ``small business'', ``small organization'' and ``small 
governmental jurisdiction'' as defined in the RFA.
    The proposed regulation, issued under section 552a(k) of the 
Privacy Act, is to exempt certain information maintained by Treasury in 
the above system of records from notification, access and amendment of 
a record by individuals who are citizens of the United States or an 
alien lawfully admitted for permanent residence. Inasmuch as the 
Privacy Act rights are personal and apply only to U.S. citizens or an 
alien lawfully admitted for permanent residence, small entities, as 
defined in the RFA, are not provided rights under the Privacy Act and 
are outside the scope of this regulation.

List of Subjects in 31 CFR Part 1

    Privacy.

    Part 1, subpart C, of title 31 of the Code of Federal Regulations 
is proposed to be 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. In Sec.  1.36, redesignate paragraphs (g)(1)(i) through (xiii) 
as (g)(1)(ii) through (xiv), respectively, and add new paragraph 
(g)(1)(i) to read as follows:


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

* * * * *
    (g) * * *
    (1) * * *
    (i) Treasury:

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                 Number                            System name
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Treasury .013..........................  Department of the Treasury
                                          Civil Rights Complaints and
                                          Compliance Review Files,
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* * * * *

     Dated: August 17, 2011.
Veronica Marco,
Acting Deputy Assistant Secretary for Privacy, Transparency, and 
Records.
[FR Doc. 2011-22979 Filed 9-8-11; 8:45 am]
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