[Federal Register Volume 77, Number 94 (Tuesday, May 15, 2012)]
[Rules and Regulations]
[Pages 28478-28487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11743]


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DEPARTMENT OF THE TREASURY

Office of the Secretary

31 CFR Part 1

RIN 1505-AC32


Privacy Act; Implementation

AGENCY: Office of the Secretary, Treasury.

ACTION: Final rule; technical amendments.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a, the Department of the Treasury is 
revising this part by amending Subpart C to reflect changes affecting 
the Department's organization since January 2003.

DATES: Effective Date: May 15, 2012.

FOR FURTHER INFORMATION CONTACT: Dale Underwood, Privacy Act Officer, 
Department of the Treasury, at 202-622-0874, or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: The Department is amending this part to 
reflect the transition, in 2003, of the United States Customs Service, 
the Federal Law Enforcement Training Center, and United States Secret 
Service from the Department of the Treasury to the Department of 
Homeland Security. In addition, the amendments reflect the 2003 
transfer of certain functions of the Bureau of Alcohol, Tobacco and 
Firearms (ATF) to the Department of Justice, and the remaining 
functions reorganized as the Alcohol and Tobacco Tax and Trade Bureau 
(TTB) within the Department of the Treasury. The amendment conforms 31 
CFR 1.36 to the changes made to the organization of the Department as 
set out in Treasury Order 101-05 ``Reporting Relationships and 
Supervision of Officials, Offices and Bureaus, and Delegation of 
Certain Authority in the Department of the Treasury,'' dated January 
10, 2011.
    The Privacy Act authorizes the head of the agency to promulgate 
rules in accordance with the Administrative Procedure Act to exempt 
Privacy Act systems of records from certain provisions of the Privacy 
Act, if the system of records contains records that fall within 5 
U.S.C. 552a(j) and/or (k).
    No new systems of records are being exempted pursuant to this rule 
nor is any new exemption being added to any systems of records. The 
rule will update the regulations to reflect changes to the number or 
title of a system of records and by removing references to systems of 
records that have been deleted from the Department's inventory of 
systems of records.
    For the reasons described above, this part is being amended to 
remove the headings, tables, and content pertaining to the following 
former Treasury bureaus: The U.S. Customs Service, the Federal Law 
Enforcement Training Center, and the U. S. Secret Service which are 
being deleted throughout Section 1.36.
    The document also amends this part by removing sections (i) and (j) 
which identified the system of records and the reasons for exempting 
the system of records under 5 U.S.C. 552a(k)(3). The system of records 
was maintained in connection with providing protective services to the 
President of the United States or other individuals pursuant to section 
3056 of Title 18. Any references to protective investigative records 
found in sections (c), (d) and (g) of this part have also been removed. 
These functions are performed by the U.S. Secret Service and were 
transferred to the Department of Homeland Security in 2003. The 
remaining sections have been re-designated.
    Under provisions of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Public Law 111-203, 124 Stat. 1376 (2010) (Dodd-Frank 
Act) certain powers and authorities of the Office of Thrift Supervision 
(OTS) were transferred on July 21, 2011, to other banking agencies, 
including the Office of the Comptroller of the Currency (OCC) and then 
abolished. The OCC published a notice on July 26, 2011, at 76 FR 44656 
adopting the Privacy Act systems of records formerly maintained by the 
OTS. These systems of records will be revised, consolidated or deleted 
by the OCC at a later date. The headings ``Office of Thrift 
Supervision,'' the tables and content found at sections (c)(1)(xii), 
(g)(1)(xii) and (m)(1)(xii) are removed. The OTS systems of records for 
which an exemption has been previously claimed have been [and as] 
adopted by the OCC are moved to the tables under the heading 
``Comptroller of the Currency'' any remaining headings and tables are 
re-designated

[[Page 28479]]

accordingly. The rule also incorporates the exemptions claimed for the 
revised and consolidated systems of records maintained by the IRS' 
Office of Chief Counsel as published on November 15, 2011, at 76 FR 
70640, as well as, the final rule published on January 11, 2012, at 77 
FR 1632 regarding records maintained by Treasury's Office of Civil 
Rights and Diversity.
    These regulations are being published as a final rule because the 
amendments do not impose any requirements on any member of the public. 
These amendments are the most efficient means for the Treasury 
Department to implement its internal requirements for complying with 
the Privacy Act.
    Accordingly, pursuant to 5 U.S.C. 553(b)(B) and (d)(3), the 
Department of the Treasury finds good cause that prior notice and other 
public procedures with respect to this rule are unnecessary, and good 
cause for making this final rule effective on the date of publication 
in the Federal Register.
    Pursuant to 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.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act, 5 U.S.C. 601-612, do not 
apply.

     Dated: March 14, 2012.
 Melissa Hartman,
 Deputy Assistant Secretary for Privacy, Transparency, and Records.

List of Subjects in 31 CFR Part 1

    Privacy.

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

PART 1--[AMENDED]

0
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.


0
2. Section 1.36 of subpart C is revised to read as follows:


Sec.  1.36  Systems exempt in whole or in part from provisions of 5 
U.S.C. 552a and this part.

    (a) In General. In accordance with 5 U.S.C. 552a(j) and (k) and 
Sec.  1.23(c), the Department of the Treasury hereby exempts the 
systems of records identified below from the following provisions of 
the Privacy Act for the reasons indicated.
    (b) Authority. These rules are promulgated pursuant to the 
authority vested in the Secretary of the Treasury by 5 U.S.C. 552a(j) 
and (k) and pursuant to the authority of Sec.  1.23(c).
    (c) General exemptions under 5 U.S.C. 552a(j)(2). (1) Under 5 
U.S.C. 552a(j)(2), the head of any agency may promulgate rules to 
exempt any system of records within the agency from certain provisions 
of the Privacy Act if the agency or component thereof that maintains 
the system performs as its principal function any activities pertaining 
to the enforcement of criminal laws. Certain components of the 
Department of the Treasury have as their principal function activities 
pertaining to the enforcement of criminal laws. This paragraph applies 
to the following systems of records maintained by the Department of the 
Treasury:
    (i) Treasury.
    (ii) Departmental Offices:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
DO .190......................  Investigation Data Management System.
DO .221......................  SIGTARP Correspondence Database.
DO .222......................  SIGTARP Investigative MIS Database.
DO .223......................  SIGTARP Investigative Files Database.
DO .224......................  SIGTARP Audit Files Database.
DO .303......................  TIGTA General Correspondence.
DO .307......................  TIGTA Employee Relations Matters,
                                Appeals, Grievances, and Complaint
                                Files.
DO .308......................  TIGTA Data Extracts.
DO .309......................  TIGTA Chief Counsel Case Files.
DO .310......................  TIGTA Chief Counsel Disclosure Section
                                Records.
DO .311......................  TIGTA Office of Investigations Files.
------------------------------------------------------------------------

    (iii) Alcohol and Tobacco Tax and Trade Bureau.
    (iv) Comptroller of the Currency:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
CC .110......................  Reports of Suspicious Activities.
CC .120......................  Bank Fraud Information System.
CC .500......................  Chief Counsel's Management Information
                                System.
CC .510......................  Litigation Information System.
OTS .001.....................  Confidential Individual Information
                                System.
OTS .004.....................  Criminal Referral Database.
------------------------------------------------------------------------

     (v) Bureau of Engraving and Printing.
    (vi) Financial Management Service.
    (vii) Internal Revenue Service:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
IRS 46.002...................  Case Management and Time Reporting
                                System, Criminal Investigation Division.
IRS 46.003...................  Confidential Informants, Criminal
                                Investigation Division.
IRS 46.005...................  Electronic Surveillance Files, Criminal
                                Investigation Division.
IRS 46.009...................  Centralized Evaluation and Processing of
                                Information Items (CEPIIs), Criminal
                                Investigation Division.
IRS 46.015...................  Relocated Witnesses, Criminal
                                Investigation Division.
IRS 46.022...................  Treasury Enforcement Communications
                                System (TECS).

[[Page 28480]]

 
IRS 46.050...................  Automated Information Analysis System.
IRS 90.001...................  Chief Counsel Management Information
                                System Records.
IRS 90.003...................  Chief Counsel Litigation and Advice
                                (Criminal) Records.
IRS 90.004...................  Chief Counsel Legal Processing Division
                                Records.
IRS 90.005...................  Chief Counsel Library Records.
------------------------------------------------------------------------

     (viii) U.S. Mint.
    (ix) Bureau of the Public Debt.
    (x) Financial Crimes Enforcement Network:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
FinCEN .001..................  FinCEN Database.
FinCEN .002..................  Suspicious Activity Reporting System.
FinCEN .003..................  Bank Secrecy Act Reports System.
------------------------------------------------------------------------

    (2) The Department hereby exempts the systems of records listed in 
paragraphs (c)(1)(i) through (x) of this section from the following 
provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(j)(2): 5 U.S.C. 
552a(c)(3) and (4), 5 U.S.C. 552a(d)(1), (2), (3), (4), 5 U.S.C. 
552a(e)(1), (2) and (3), 5 U.S.C. 552a(e)(4)(G), (H), and (I), 5 U.S.C. 
552a(e)(5) and (8), 5 U.S.C. 552a(f), and 5 U.S.C. 552a(g).
    (d) Reasons for exemptions under 5 U.S.C. 552a(j)(2). (1) 5 U.S.C. 
552a(e)(4)(G) and (f)(l) enable individuals to inquire whether a system 
of records contains records pertaining to them. Application of these 
provisions to the systems of records would give individuals an 
opportunity to learn whether they have been identified as suspects or 
subjects of investigation. As further described in the following 
paragraph, access to such knowledge would impair the Department's 
ability to carry out its mission, since individuals could:
    (i) Take steps to avoid detection;
    (ii) Inform associates that an investigation is in progress;
    (iii) Learn the nature of the investigation;
    (iv) Learn whether they are only suspects or identified as law 
violators;
    (v) Begin, continue, or resume illegal conduct upon learning that 
they are not identified in the system of records; or
    (vi) Destroy evidence needed to prove the violation.
    (2) 5 U.S.C. 552a(d)(1), (e)(4)(H) and (f)(2), (3) and (5) grant 
individuals access to records pertaining to them. The application of 
these provisions to the systems of records would compromise the 
Department's ability to provide useful tactical and strategic 
information to law enforcement agencies.
    (i) Permitting access to records contained in the systems of 
records would provide individuals with information concerning the 
nature of any current investigations and would enable them to avoid 
detection or apprehension by:
    (A) Discovering the facts that would form the basis for their 
arrest;
    (B) Enabling them to destroy or alter evidence of criminal conduct 
that would form the basis for their arrest; and
    (C) Using knowledge that criminal investigators had reason to 
believe that a crime was about to be committed, to delay the commission 
of the crime 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 crimes to 
structure their operations so as to avoid detection or apprehension.
    (iii) Permitting access to investigative files and records could, 
moreover, disclose the identity of confidential sources and informants 
and the nature of the information supplied and thereby endanger the 
physical safety of those sources by exposing them to possible reprisals 
for having provided the information. Confidential sources and 
informants might refuse to provide criminal investigators with valuable 
information unless they believe that their identities will 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 Department's ability to carry out its mandate.
    (iv) Furthermore, providing access to records contained in the 
systems of records could reveal the identities of undercover law 
enforcement officers who compiled information regarding the 
individual's criminal activities and thereby endanger the physical 
safety of those undercover officers or their families by exposing them 
to possible reprisals.
    (v) By compromising the law enforcement value of the systems of 
records for the reasons outlined in paragraphs (d)(2)(i) through (iv) 
of this section, permitting access in keeping with these provisions 
would discourage other law enforcement and regulatory agencies, foreign 
and domestic, from freely sharing information with the Department and 
thus would restrict the Department's access to information necessary to 
accomplish its mission most effectively.
    (vi) Finally, the dissemination of certain information that the 
Department maintains in the systems of records is restricted by law.
    (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 him or her 
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 on the individual 
having access to his or her records, and since these rules exempt the 
systems of records from the provisions of 5 U.S.C. 552a relating to 
access to records, for the reasons set out in paragraph (d)(2) of this 
section, these provisions should not apply to the systems of records.
    (4) 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 each disclosure of the record and the name and address 
of the recipient.
    (i) The application of this provision would impair the ability of 
law enforcement agencies outside the

[[Page 28481]]

Department of the Treasury to make effective use of information 
provided by the Department. Making accountings of disclosures available 
to the subjects of an investigation would alert them to the fact that 
another agency is conducting an investigation into their criminal 
activities and could reveal the geographic location of the other 
agency's investigation, the nature and purpose of that investigation, 
and the dates on which that investigation was active. Individuals 
possessing such knowledge would be able to take measures to avoid 
detection or apprehension by altering their operations, by transferring 
their criminal activities to other geographical areas, or by destroying 
or concealing evidence that would form the basis for arrest. In the 
case of a delinquent account, such release might enable the subject of 
the investigation to dissipate assets before levy.
    (ii) Moreover, providing accountings to the subjects of 
investigations would alert them to the fact that the Department has 
information regarding their criminal activities and could inform them 
of the general nature of that information. Access to such information 
could reveal the operation of the Department's information-gathering 
and analysis systems and permit individuals to take steps to avoid 
detection or apprehension.
    (5) 5 U.S.C. 552(c)(4) requires an agency to inform any person or 
other agency about any correction or notation of dispute that the 
agency made in accordance with 5 U.S.C. 552a(d) to any record that the 
agency disclosed to the person or agency if an accounting of the 
disclosure was made. Since this provision depends on an individual's 
having access to and an opportunity to request amendment of records 
pertaining to him or her, and since these rules exempt the systems of 
records from the provisions of 5 U.S.C. 552a relating to access to and 
amendment of records, for the reasons set out in paragraph (f)(3) of 
this section, this provision should not apply to the systems of 
records.
    (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. The application of this provision to the systems of 
records could compromise the Department's ability to provide useful 
information to law enforcement agencies, since revealing sources for 
the information could:
    (i) Disclose investigative techniques and procedures;
    (ii) Result in threats or reprisals against informants by the 
subjects of investigations; and
    (iii) Cause informants to refuse to give full information to 
criminal investigators for fear of having their identities as sources 
disclosed.
    (7) 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 to the systems of 
records could impair the Department's ability to collect and 
disseminate valuable law enforcement information.
    (i) In many cases, especially in the early stages of investigation, 
it may be impossible to immediately determine whether information 
collected is relevant and necessary, and information that initially 
appears irrelevant and unnecessary often may, upon further evaluation 
or upon collation with information developed subsequently, prove 
particularly relevant to a law enforcement program.
    (ii) Not all violations of law discovered by the Department fall 
within the investigative jurisdiction of the Department of the 
Treasury. To promote effective law enforcement, the Department will 
have to disclose such violations to other law enforcement agencies, 
including State, local and foreign agencies, that have jurisdiction 
over the offenses to which the information relates. Otherwise, the 
Department might be placed in the position of having to ignore 
information relating to violations of law not within the jurisdiction 
of the Department of the Treasury when that information comes to the 
Department's attention during the collation and analysis of information 
in its records.
    (8) 5 U.S.C. 552a(e)(2) requires an agency to collect information 
to the greatest extent practicable directly from the subject individual 
when the information may result in adverse determinations about an 
individual's rights, benefits, and privileges under Federal programs. 
The application of this provision to the systems of records would 
impair the Department's ability to collate, analyze, and disseminate 
investigative, intelligence, and enforcement information.
    (i) Most information collected about an individual under criminal 
investigation is obtained from third parties, such as witnesses and 
informants. It is usually not feasible to rely upon the subject of the 
investigation as a source for information regarding his criminal 
activities.
    (ii) An attempt to obtain information from the subject of a 
criminal investigation will often alert that individual to the 
existence of an investigation, thereby affording the individual an 
opportunity to attempt to conceal his criminal activities so as to 
avoid apprehension.
    (iii) In certain instances, the subject of a criminal investigation 
may assert his/her constitutional right to remain silent and refuse to 
supply information to criminal investigators upon request.
    (iv) During criminal investigations it is often a matter of sound 
investigative procedure to obtain information from a variety of sources 
to verify information already obtained from the subject of a criminal 
investigation or other sources.
    (9) 5 U.S.C. 552a(e)(3) requires an agency to inform each 
individual whom it asks to supply information, on the form that it uses 
to collect the information or on a separate form that the individual 
can retain, of the agency's authority for soliciting the information; 
whether disclosure of information is voluntary or mandatory; the 
principal purposes for which the agency will use the information; the 
routine uses that may be made of the information; and the effects on 
the individual of not providing all or part of the information. The 
systems of records should be exempted from this provision to avoid 
impairing the Department's ability to collect and collate 
investigative, intelligence, and enforcement data.
    (i) Confidential sources or undercover law enforcement officers 
often obtain information under circumstances in which it is necessary 
to keep the true purpose of their actions secret so as not to let the 
subject of the investigation or his or her associates know that a 
criminal investigation is in progress.
    (ii) If it became known that the undercover officer was assisting 
in a criminal investigation, that officer's physical safety could be 
endangered through reprisal, and that officer may not be able to 
continue working on the investigation.
    (iii) Individuals often feel inhibited in talking to a person 
representing a criminal law enforcement agency but are willing to talk 
to a confidential source or undercover officer whom they believe are 
not involved in law enforcement activities.
    (iv) Providing a confidential source of information with written 
evidence that he or she was a source, as required by this provision, 
could increase the likelihood that the source of information

[[Page 28482]]

would be subject to retaliation by the subject of the investigation.
    (v) Individuals may be contacted during preliminary information 
gathering, surveys, or compliance projects concerning the 
administration of the internal revenue laws before any individual is 
identified as the subject of an investigation. Informing the individual 
of the matters required by this provision would impede or compromise 
subsequent investigations.
    (10) 5 U.S.C. 552a(e)(5) requires an agency to maintain all records 
it uses in making any determination about any individual with such 
accuracy, relevance, timeliness, and completeness as is reasonably 
necessary to assure fairness to the individual in the determination.
    (i) Since 5 U.S.C. 552a(a)(3) defines ``maintain'' to include 
``collect'' and ``disseminate,'' application of this provision to the 
systems of records would hinder the initial collection of any 
information that could not, at the moment of collection, be determined 
to be accurate, relevant, timely, and complete. Similarly, application 
of this provision would seriously restrict the Department's ability to 
disseminate information pertaining to a possible violation of law to 
law enforcement and regulatory agencies. In collecting information 
during a criminal investigation, it is often impossible or unfeasible 
to determine accuracy, relevance, timeliness, or completeness prior to 
collection of the information. In disseminating information to law 
enforcement and regulatory agencies, it is often impossible to 
determine accuracy, relevance, timeliness, or completeness prior to 
dissemination because the Department may not have the expertise with 
which to make such determinations.
    (ii) Information that may initially appear inaccurate, irrelevant, 
untimely, or incomplete may, when collated and analyzed with other 
available information, become more pertinent as an investigation 
progresses. In addition, application of this provision could seriously 
impede criminal investigators and intelligence analysts in the exercise 
of their judgment in reporting results obtained during criminal 
investigations.
    (11) 5 U.S.C. 552a(e)(8) requires an agency to make reasonable 
efforts to serve notice on an individual when the agency makes any 
record on the individual available to any person under compulsory legal 
process, when such process becomes a matter of public record. The 
systems of records should be exempted from this provision to avoid 
revealing investigative techniques and procedures outlined in those 
records and to prevent revelation of the existence of an ongoing 
investigation where there is need to keep the existence of the 
investigation secret.
    (12) 5 U.S.C. 552a(g) provides for civil remedies to an individual 
when an agency wrongfully refuses to amend a record or to review a 
request for amendment, when an agency wrongfully refuses to grant 
access to a record, when an agency fails to maintain accurate, 
relevant, timely, and complete records which are used to make a 
determination adverse to the individual, and when an agency fails to 
comply with any other provision of 5 U.S.C. 552a so as to adversely 
affect the individual. The systems of records should be exempted from 
this provision to the extent that the civil remedies may relate to 
provisions of 5 U.S.C. 552a from which these rules exempt the systems 
of records, since there should be no civil remedies for failure to 
comply with provisions from which the Department is exempted. Exemption 
from this provision will also protect the Department from baseless 
civil court actions that might hamper its ability to collate, analyze, 
and disseminate investigative, intelligence, and law enforcement data.
    (e) Specific exemptions under 5 U.S.C. 552a(k)(1). (1) Under 5 
U.S.C. 552a(k)(1), the head of any agency may promulgate rules to 
exempt any system of records within the agency from certain provisions 
of the Privacy Act to the extent that the system contains information 
subject to the provisions of 5 U.S.C. 552(b)(1). This paragraph applies 
to the following systems of records maintained by the Department of the 
Treasury:
    (i) Departmental Offices:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
DO .120......................  Records Related to Office of Foreign
                                Assets Control Economic Sanctions.
------------------------------------------------------------------------

     (ii) Financial Crimes Enforcement Network:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
FinCEN .001..................  FinCEN Database.
------------------------------------------------------------------------

    (2) The Department of the Treasury hereby exempts the systems of 
records listed in paragraph (e)(1)(i) and (ii) of this section from the 
following provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(1): 
5 U.S.C. 552a(c)(3), 5 U.S.C. 552a(d)(1), (2), (3), and (4), 5 U.S.C. 
552a(e)(1), 5 U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
    (f) Reasons for exemptions under 5 U.S.C. 552a(k)(1). The reason 
for invoking the exemption is to protect material authorized to be kept 
secret in the interest of national defense or foreign policy pursuant 
to Executive Orders 12958, 13526, or successor or prior Executive 
Orders.
    (g) Specific exemptions under 5 U.S.C. 552a(k)(2). (1) Under 5 
U.S.C. 552a(k)(2), the head of any agency may promulgate rules to 
exempt any system of records within the agency from certain provisions 
of the Privacy Act if the system is investigatory material compiled for 
law enforcement purposes and for the purposes of assuring the safety of 
individuals protected by the Department pursuant to the provisions of 
18 U.S.C. 3056. This paragraph applies to the following systems of 
records maintained by the Department of the Treasury:
    (i) Treasury:

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


[[Page 28483]]

     (ii) Departmental Offices:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
DO .120......................  Records Related to Office of Foreign
                                Assets Control Economic Sanctions.
DO .144......................  General Counsel Litigation Referral and
                                Reporting System.
DO .190......................  Investigation Data Management System.
DO .220......................  SIGTARP Hotline Database.
DO .221......................  SIGTARP Correspondence Database.
DO .222......................  SIGTARP Investigative MIS Database.
DO .223......................  SIGTARP Investigative Files Database.
DO .224......................  SIGTARP Audit Files Database.
DO.225.......................  TARP Fraud Investigation Information
                                System.
DO .303......................  TIGTA General Correspondence.
DO .307......................  TIGTA Employee Relations Matters,
                                Appeals, Grievances, and Complaint
                                Files.
DO .308......................  TIGTA Data Extracts.
DO .309......................  TIGTA Chief Counsel Case Files.
DO .310......................  TIGTA Chief Counsel Disclosure Section
                                Records.
DO .311......................  TIGTA Office of Investigations Files.
------------------------------------------------------------------------

     (iii) Alcohol and Tobacco Tax and Trade Bureau:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
TTB .001.....................  Regulatory Enforcement Record System.
------------------------------------------------------------------------

     (iv) Comptroller of the Currency:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
CC .100......................  Enforcement Action Report System.
CC .110......................  Reports of Suspicious Activities.
CC .120......................  Bank Fraud Information System.
CC .220......................  Section 914 Tracking System.
CC .500......................  Chief Counsel's Management Information
                                System.
CC .510......................  Litigation Information System.
CC .600......................  Consumer Complaint Inquiry and
                                Information System.
OTS .001.....................  Confidential Individual Information
                                System.
OTS .004.....................  Criminal Referral Database.
------------------------------------------------------------------------

    (v) Bureau of Engraving and Printing:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
BEP .021.....................  Investigative files.
------------------------------------------------------------------------

    (vi) Financial Management Service.
    (vii) Internal Revenue Service:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
IRS 00.002...................  Correspondence File-Inquiries about
                                Enforcement Activities.
IRS 00.007...................  Employee Complaint and Allegation
                                Referral Records.
IRS 00.334...................  Third Party Contact Reprisal Records.
IRS 22.061...................  Wage and Information Returns Processing
                                (IRP).
IRS 24.047...................  Audit Underreporter Case Files.
IRS 26.001...................  Acquired Property Records.
IRS 26.006...................  Form 2209, Courtesy Investigations.
IRS 26.012...................  Offer in Compromise (OIC) Files.
IRS 26.013...................  One-hundred Per Cent Penalty Cases.
IRS 26.019...................  TDA (Taxpayer Delinquent Accounts).
IRS 26.020...................  TDI (Taxpayer Delinquency Investigations)
                                Files.
IRS 26.021...................  Transferee Files.
IRS 34.037...................  IRS Audit Trail and Security Records
                                System.
IRS 37.007...................  Practitioner Disciplinary Records.
IRS 37.009...................  Enrolled Agents Records.
IRS 42.001...................  Examination Administrative File.
IRS 42.002...................  Excise Compliance Programs.
IRS 42.005...................  Whistleblower Office Records.

[[Page 28484]]

 
IRS 42.008...................  Audit Information Management System
                                (AIMS).
IRS 42.016...................  Classification and Examination Selection
                                Files.
IRS 42.017...................  International Enforcement Program Files.
IRS 42.021...................  Compliance Programs and Projects Files.
IRS 42.031...................  Anti-Money Laundering/Bank Secrecy Act
                                (BSA) and Form 8300 Records.
IRS 44.001...................  Appeals Case Files.
IRS 46.050...................  Automated Information Analysis System.
IRS 48.001...................  Disclosure Records.
IRS 49.001...................  Collateral and Information Requests
                                System.
IRS 49.002...................  Component Authority and Index Card
                                Microfilm Retrieval System.
IRS 50.222...................  Tax Exempt Government Entities Case
                                Management Records.
IRS 60.000...................  Employee Protection System Records.
IRS 90.001...................  Chief Counsel Management Information
                                System Records.
IRS 90.002...................  Chief Counsel Litigation and Advice
                                (Civil) Records.
IRS 90.004...................  Chief Counsel Legal Processing Division
                                Records.
IRS 90.005...................  Chief Counsel Library Records.
------------------------------------------------------------------------

     (viii) U.S. Mint:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
Mint .008....................  Criminal investigation files.
------------------------------------------------------------------------

     (ix) Bureau of the Public Debt:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
BPD.009......................  U.S. Treasury Securities Fraud
                                Information System.
------------------------------------------------------------------------

     (x) Financial Crimes Enforcement Network:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
FinCEN .001..................  FinCEN Database.
FinCEN .002..................  Suspicious Activity Reporting System.
FinCEN .003..................  Bank Secrecy Act Reports System.
------------------------------------------------------------------------

     (2) The Department hereby exempts the systems of records listed in 
paragraphs (g)(1)(i) through (x) of this section from the following 
provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(2): 5 U.S.C. 
552a(c)(3), 5 U.S.C. 552a(d)(1), (2), (3), (4), 5 U.S.C. 552a(e)(1), 5 
U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
    (h) Reasons for exemptions under 5 U.S.C. 552a(k)(2). (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 
each disclosure of the record and the name and address of the 
recipient.
    (i) The application of this provision would impair the ability of 
the Department of the Treasury and of law enforcement agencies outside 
the Department 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. Individuals possessing such knowledge would 
be able to take measures to avoid detection or apprehension by altering 
their 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) 5 U.S.C. 552a(d)(1), (e)(4)(H) and (f)(2), (3) and (5) grant 
individuals access to records pertaining to them. 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) Permitting access to records contained in the systems of 
records would provide individuals with information concerning the 
nature of any current investigations and would enable them to avoid 
detection or apprehension by:
    (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

[[Page 28485]]

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) Permitting access to investigative files and records could, 
moreover, disclose the identity of confidential sources and informants 
and the nature of the information supplied and thereby endanger the 
physical safety of those sources by exposing them to possible reprisals 
for having provided the information. Confidential sources and 
informants 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. Loss of access to such sources would 
seriously impair the Department's ability to carry out its mandate.
    (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.
    (v) By compromising the law enforcement value of the systems of 
records for the reasons outlined in paragraphs (h)(2)(i) through (iv) 
of this section, permitting access in keeping with these provisions 
would discourage other law enforcement and regulatory agencies, foreign 
and domestic, from freely sharing information with the Department and 
thus would restrict the Department's access to information necessary to 
accomplish its mission most effectively.
    (vi) Finally, the dissemination of certain information that the 
Department may maintain in the systems of records is restricted by law.
    (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 him or her 
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 on the individual 
having access to his or her records, and since these rules exempt the 
systems of records from the provisions of 5 U.S.C. 552a relating to 
access to records, these provisions should not apply to the systems of 
records for the reasons set out in paragraph (h)(2) of this section.
    (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 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 to the system of records could impair the 
Department's ability to collect, utilize and disseminate valuable law 
enforcement information.
    (i) In many cases, especially in the early stages of investigation, 
it may be impossible immediately to determine whether information 
collected is relevant and necessary, and information that initially 
appears irrelevant and unnecessary often may, upon further evaluation 
or upon collation with information developed subsequently, prove 
particularly relevant to a law enforcement program.
    (ii) Not all violations of law discovered by the Department 
analysts fall within the investigative jurisdiction of the Department 
of the Treasury. To promote effective law enforcement, the Department 
will have to disclose such violations to other law enforcement 
agencies, including State, local and foreign agencies that have 
jurisdiction over the offenses to which the information relates. 
Otherwise, the Department might be placed in the position of having to 
ignore information relating to violations of law not within the 
jurisdiction of the Department of the Treasury when that information 
comes to the Department's attention during the collation and analysis 
of information in its records.
    (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 systems of records would allow 
individuals to learn whether they have been identified as suspects or 
subjects of investigation. As further described in the following 
paragraph, access to such knowledge would impair the Department's 
ability to carry out its mission, since individuals could:
    (i) Take steps to avoid detection;
    (ii) Inform associates that an investigation is in progress;
    (iii) Learn the nature of the investigation;
    (iv) Learn whether they are only suspects or identified as law 
violators;
    (v) Begin, continue, or resume illegal conduct upon learning that 
they are not identified in the system of records; or
    (vi) Destroy 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. 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:
    (i) Disclose investigative techniques and procedures;
    (ii) Result in threats or reprisals against informants by the 
subjects of investigations; and
    (iii) Cause informants to refuse to give full information to 
investigators for fear of having their identities as sources disclosed.
    (i) Specific exemptions under 5 U.S.C. 552a(k)(4). (1) Under 5 
U.S.C. 552a(k)(4), the head of any agency may promulgate rules to 
exempt any system of records within the agency from certain provisions 
of the Privacy Act if the system is required by statute to be 
maintained and used solely as statistical records. This paragraph 
applies to the following system of records maintained by the 
Department, for which exemption is claimed under 5 U.S.C. 552a(k)(4).
    Internal Revenue Service:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
IRS 70.001...................  Statistics of Income--Individual Tax
                                Returns.
------------------------------------------------------------------------

     (2) The Department hereby exempts the system of records listed in 
paragraph (i)(1) of this section from the following provisions of 5 
U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(4): 5 U.S.C. 552a(c)(3), 5 
U.S.C. 552a(d)(1), (2), (3), and (4), 5

[[Page 28486]]

U.S.C. 552a(e)(1), 5 U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 
552a(f).
    (3) The system of records is maintained under section 6108 of the 
Internal Revenue Code, which provides that ``the Secretary or his 
delegate shall prepare and publish annually statistics reasonably 
available with respect to the operation of the income tax laws, 
including classifications of taxpayers and of income, the amounts 
allowed as deductions, exemptions, and credits, and any other facts 
deemed pertinent and valuable.''
    (j) Reasons for exemptions under 5 U.S.C. 552a(k)(4). The reason 
for exempting the system of records is that disclosure of statistical 
records (including release of accounting for disclosures) would in most 
instances be of no benefit to a particular individual since the records 
do not have a direct effect on a given individual.
    (k) Specific exemptions under 5 U.S.C. 552a(k)(5). (1) Under 5 
U.S.C. 552a(k)(5), the head of any agency may promulgate rules to 
exempt any system of records within the agency from certain provisions 
of the Privacy Act if the system is investigatory material compiled 
solely for the purpose of determining suitability, eligibility, and 
qualifications for Federal civilian employment or access to classified 
information, but only to the extent that the disclosure of such 
material would reveal the identity of a source who furnished 
information to the Government under an express promise that the 
identity of the source would be held in confidence, or, prior to 
September 27, 1975, under an implied promise that the identity of the 
source would be held in confidence. Thus to the extent that the records 
in this system can be disclosed without revealing the identity of a 
confidential source, they are not within the scope of this exemption 
and are subject to all the requirements of the Privacy Act. This 
paragraph applies to the following systems of records maintained by the 
Department or one of its bureaus:
    (i) Treasury:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
Treasury .007................  Personnel Security System.
------------------------------------------------------------------------

     (ii) Departmental Offices:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
DO .306......................  TIGTA Recruiting and Placement.
------------------------------------------------------------------------

     (iii) Alcohol and Tobacco Tax and Trade Bureau.
    (iv) Comptroller of the Currency.
    (v) Bureau of Engraving and Printing.
    (vi) Financial Management Service.
    (vii) Internal Revenue Service:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
IRS 34.021...................  Personnel Security Investigations,
                                National Background Investigations
                                Center.
IRS 34.022...................  Automated Background Investigations
                                System (ABIS).
IRS 90.006...................  Chief Counsel Human Resources and
                                Administrative Records.
------------------------------------------------------------------------

     (viii) U.S. Mint.
    (ix) Bureau of the Public Debt.
    (x) Financial Crimes Enforcement Network.
    (2) The Department hereby exempts the systems of records listed in 
paragraph (k)(1)(i) through (x) of this section from the following 
provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(5): 5 U.S.C. 
552a(c)(3), 5 U.S.C. 552a(d)(1), (2), (3), and (4), 5 U.S.C. 
552a(e)(1), 5 U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
    (l) Reasons for exemptions under 5 U.S.C. 552a(k)(5). (1) The 
sections of 5 U.S.C. 552a from which the systems of records are exempt 
include in general those providing for individuals' access to or 
amendment of records. When such access or amendment would cause the 
identity of a confidential source to be revealed, it would impair the 
future ability of the Department to compile investigatory material for 
the purpose of determining suitability, eligibility, or qualifications 
for Federal civilian employment, Federal contracts, or access to 
classified information. In addition, the systems shall be exempt from 5 
U.S.C. 552a(e)(1) which requires that an agency 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 Department believes that to fulfill the 
requirements of 5 U.S.C. 552a(e)(1) would unduly restrict the agency in 
its information gathering inasmuch as it is often not until well after 
the investigation that it is possible to determine the relevance and 
necessity of particular information.
    (2) If any investigatory material contained in the above-named 
systems becomes involved in criminal or civil matters, exemptions of 
such material under 5 U.S.C. 552a(j)(2) or (k)(2) is hereby claimed.
    (m) Exemption under 5 U.S.C. 552a(k)(6). (1) Under 5 U.S.C. 
552a(k)(6), the head of any agency may promulgate rules to exempt any 
system of records that is testing or examination material used solely 
to determine individual qualifications for appointment or promotion in 
the Federal service the disclosure of which would compromise the 
objectivity or fairness of the testing or examination process. This 
paragraph applies to the following system of records maintained by the 
Department, for which exemption is claimed under 5 U.S.C. 552a(k)(6).
    Departmental Officers:

------------------------------------------------------------------------
            Number                            System name
------------------------------------------------------------------------
DO .306......................  TIGTA Recruiting and Placement Records.
------------------------------------------------------------------------


[[Page 28487]]

     (2) The Department hereby exempts the system of records listed in 
paragraphs (m)(1) of this section from the following provisions of 5 
U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(6): 5 U.S.C. 552a(c)(3), 5 
U.S.C. 552a(d)(1), (2), (3), and (4), 5 U.S.C. 552a(e)(1), 5 U.S.C. 
552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
    (n) Reasons for exemptions under 5 U.S.C. 552a(k)(6). The reason 
for exempting the system of records is that disclosure of the material 
in the system would compromise the objectivity or fairness of the 
examination process.
    (o) Exempt information included in another system. Any information 
from a system of records for which an exemption is claimed under 5 
U.S.C. 552a(j) or (k) which is also included in another system of 
records retains the same exempt status such information has in the 
system for which such exemption is claimed.

[FR Doc. 2012-11743 Filed 5-14-12; 8:45 am]
BILLING CODE 4810-25-P