[Federal Register Volume 77, Number 190 (Monday, October 1, 2012)]
[Notices]
[Pages 60014-60022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24017]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Privacy Act of 1974, as Amended; System of Records Notice

AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.

ACTION: Notice of alterations of three Privacy Act systems of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Financial Crimes Enforcement Network (``FinCEN''), Department of the 
Treasury (``Treasury''), gives notice of proposed alterations to three 
existing systems of records entitled ``Treasury/FinCEN .001--FinCEN 
Investigations and Examinations System (the ``Investigations and 
Examinations System''),'' ``Treasury/FinCEN .002--Suspicious Activity 
Report System (the ``SAR System''),'' and ``Treasury/FinCEN .003--Bank 
Secrecy Act Reports System (the ``BSA System'').'' The systems of 
records were last published in their entirety on July 21, 2008, at 73 
FR 42406, 73 FR 42407, and 73 FR 42409, respectively.

DATES: Comments must be received no later than October 31, 2012. This 
altered system of records will be effective November 5, 2012 unless the 
Department receives comments which would result in a contrary 
determination.

ADDRESSES: Written comments should be submitted to: Office of Chief 
Counsel, Financial Crimes Enforcement Network, Department of the 
Treasury, P.O. Box 39, Vienna, VA 22183-0039, Attention: Revisions to 
PA System of Records-Comments. Comments also may be submitted be 
electronic mail to the following Internet address:

[[Page 60015]]

[email protected], with the above caption in the body of the text.
    Inspection of comments: Comments are available on 
www.regulations.gov and are posted when received. Comments may be 
inspected at FinCEN between 10 a.m. and 4 p.m., in the FinCEN Reading 
Room, Vienna, VA. Persons wishing to inspect the comments submitted 
must request an appointment with the Disclosure Officer by telephoning 
(703) 905-5034 (not a toll-free call).

FOR FURTHER INFORMATION CONTACT: Office of Chief Counsel, FinCEN, at 
(703) 905-3590 (not a toll-free call).

SUPPLEMENTARY INFORMATION: FinCEN has conducted a review of its Privacy 
Act systems of records for compliance with the Privacy Act (5 U.S.C. 
552a) and with Appendix 1 to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000, and is proposing to alter three of its current 
systems of records. FinCEN has a legal requirement to publish such 
notices.
    The systems of records contain information collected under the 
statutory authority of the Bank Secrecy Act, Title I and II of Public 
Law 91-508, as amended, and codified at 12 U.S.C. 1829b, 12 U.S.C. 
1951-1959, and 31 U.S.C. 5311-5314, 5316-5332, or any other authority 
exercised by FinCEN to compel the reporting of records, such as section 
104(e) of the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010, Public Law 111-195. These systems of records 
may also include information or records that contribute to effective 
law enforcement and regulation of financial institutions and non-
financial trades or businesses, including, but not limited to, subject 
files on individuals, corporations, and other legal entities. The Bank 
Secrecy Act authorizes the Secretary of the Treasury, inter alia, to 
require financial institutions and individuals to keep records and file 
reports that are determined to have a high degree of usefulness in 
criminal, tax, and regulatory matters, or in the conduct of 
intelligence or counter-intelligence activities to protect against 
international terrorism, and to implement counter-money laundering 
programs and compliance procedures. The regulations implementing Title 
II of the Bank Secrecy Act appear at 31 CFR chapter X. The Secretary 
delegated his authority to administer the Bank Secrecy Act to the 
Director of FinCEN.
    Suspicious transaction reporting is required by regulations issued 
by FinCEN and the supervisory agencies that examine and regulate the 
safety and soundness of financial institutions, namely the Board of 
Governors of the Federal Reserve System, the Office of the Comptroller 
of the Currency, the Federal Deposit Insurance Corporation, and the 
National Credit Union Administration (collectively, the ``Federal 
Supervisory Agencies'').\1\ The requirements of FinCEN and the Federal 
Supervisory Agencies create an integrated system for reporting 
suspicious activity and known or suspected crimes. Under these 
requirements, financial institutions file a single uniform Suspicious 
Activity Report (a ``SAR'') with FinCEN. Prior to the development of 
the integrated SAR filing system, a financial institution reporting a 
known or suspected violation of law was required to file multiple 
copies of criminal referral forms with its Federal Supervisory Agency 
and Federal law enforcement agencies. Each Federal Supervisory Agency 
had promulgated a different form. Under the current system, a financial 
institution meets its obligation to report a known or suspected 
violation of law by filing one copy of a SAR with FinCEN.
    In the course of its review, FinCEN identified a number of non-
substantive, clarifying revisions to the SAR System's system of records 
notice as part of its negotiations on the improvements being made to 
the data base storing the information contained in FinCEN's systems of 
records (the ``FinCEN Data Base''), and access and use issues with the 
Federal Supervisory Agencies. The Federal Supervisory Agencies have 
indicated broad acceptance of this package of revisions, and have 
committed to consider harmonizing their own systems of records notices 
referencing SARs with FinCEN's SAR System notice language, as revised 
in this notice. To the extent different systems of records notices 
attempt to communicate the same point, they should use broadly 
identical language. As a result, a number of the revisions to the SAR 
System notice are appropriate, and have been adopted in the 
Investigations and Examinations System notice and the BSA Reports 
System notice. Additional clarifying revisions have been made to the 
Investigations and Examinations System notice and the BSA Reports 
System notice with respect to language that has no direct parallel in 
the FinCEN SAR System notice.
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    \1\ For purposes of this notice, the term ``Financial 
Supervisory Agencies'' also includes the now defunct Office of 
Thrift Supervision (``OTS'') to the extent that the SAR System 
includes information from reports filed pursuant to rules issued by 
the OTS.
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    Consequently, these system notices contain a number of proposed 
revisions that modify the 2008 FinCEN Privacy Act systems of records 
notices. Most of these revisions are non-substantive clarifications. 
FinCEN is legally permitted to make all of these non-substantive 
revisions set forth in the systems of records notices published below. 
The revisions to the SAR System notice, as a whole, have been discussed 
with the Federal Supervisory Agencies and would form a generally 
acceptable base from which to work towards the goal of a single, 
uniform federal government standard for public notice of the use of 
SARs. The non-substantive revisions to the Investigations and 
Examinations System notice and the BSA Reports System notice generally 
make those notices more consistent with the SAR System notice, thus 
producing a clearer and a more accurate reflection of FinCEN's actual 
practices.
    One new routine use is being proposed for the FinCEN .001--FinCEN 
Investigations and Examinations System notice as follows:
    (10) Disclose information or records to any person with whom 
FinCEN, Enterprise Computing Center Detroit (ECCD), Enterprise 
Computing Center Martinsburg (ECCM),\2\ or a FinCEN Investigations and 
Examinations System User \3\ contracts to provide consulting, data 
processing, clerical, secretarial, or other services relating to the 
official programs and operations of FinCEN, ECCD, ECCM, or the FinCEN 
Investigations and Examinations System User.
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    \2\ ``ECCD'' and ``ECCM'' are the IRS data processing sites that 
provide data processing services to FinCEN, as identified under the 
header ``System Location'' in each system of records notice.
    \3\ A FinCEN Investigations and Examinations System User is an 
agency or organization that has been granted access to the 
information in this system.

This routine use is compatible with the purpose for which the records 
are collected because such disclosures will enable FinCEN to better 
administer the information it maintains and may facilitate the use of 
information in accordance with applicable laws and regulations. FinCEN 
believes that this routine use is implicit in the other routine uses 
for this notice, but nevertheless is seeking to explicitly add it for 
the sake of clarity. Other routine uses for this notice would be 
revised in ways that do not increase the availability of records or 
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amend the manner in which the records may be used.


[[Page 60016]]


    There are no new routine uses being proposed for the FinCEN .002--
SAR System notice. The revised routine uses that are being proposed for 
this notice do not increase the availability of records in that system 
or amend the manner in which the records may be used. The proposed SAR 
System notice would delete the routine use relating to the disclosure 
of SARs to bar associations and other professional organizations, to 
better reflect FinCEN's actual practice and to conform the SAR System 
notice withFinCEN's other systems notices.
    The new or revised routine uses for the FinCEN .003--BSA Report 
System notice are as follows:
    (1) Provide information or records, electronically or manually, to 
a BSA Report System User if relevant to the enforcement, regulatory, 
and supervisory programs and operations of that user;
    (2) Provide a BSA Report System User, and if applicable the unit 
within an Executive Department to which the BSA Report System User 
reports, with reports that indicate the number, amount, individual 
identity of participants, and other details concerning events or 
activities that have been the subject of a BSA Report;
* * * * *
    (5) Provide information or records, when appropriate, to an 
international authority or foreign government in accordance with law 
and bilateral or multilateral international agreements;
* * * * *
    (7) Disclose the existence, but not necessarily the content, of 
information or records pertaining to an investigation by a BSA Report 
System User, on behalf of and with the approval of that BSA Report 
System User, to another BSA Report System User, when FinCEN determines 
that such disclosure furthers the coordinated analysis and tracking of 
information among BSA Report System Users;
* * * * *
    (11) Provide information or records to the United States 
Intelligence Community, within the meaning of Executive Order 12333 
(December 4, 1981) as amended, to further those agencies' efforts with 
respect to national security consistent with applicable law; and
* * * * *
    (13) Disclose information or records to any person with whom 
FinCEN, ECCD, ECCM, or a BSA Report System User contracts to provide 
consulting, data processing, clerical, secretarial, or other services 
relating to the official programs and operations of FinCEN, ECCD, ECCM, 
or the BSA Report System User.

These routine uses are compatible with the purpose for which the 
records are collected because such disclosures will enable FinCEN to 
better administer the information it maintains and may facilitate the 
use of the information in accordance with applicable laws and 
regulations. FinCEN believes that these routine uses are implicit in 
the other routine uses for this notice, but nevertheless is seeking to 
explicitly add them for the sake of clarity. Other routine uses for 
this notice would be revised in ways that do not increase the 
availability of records or amend the manner in which the records may be 
used.

    Information in the systems of records may be retrieved by personal 
identifier. The Privacy Act of 1974 requires the Treasury to give 
general notice, and opportunity to comment, to the public when making 
substantive changes to these Systems. Although revisions to these 
systems of records notices are non-substantive, they are numerous. As a 
result, FinCEN is providing notice and public comment opportunity. The 
notices were last published in their entirety on July 21, 2008, 
beginning at 73 FR 42405.
    For the reasons set forth above, FinCEN proposes to alter the 
FinCEN Investigations and Examinations System, the SAR System, and the 
BSA System, as follows:
Treasury/FinCEN.001

SYSTEM NAME:
    FinCEN Investigations and Examinations System--Treasury/FinCEN.

SYSTEM LOCATION:
    The Internal Revenue Service Enterprise Computing Center Detroit 
(ECCD), 985 Michigan Avenue, Detroit, Michigan 48226-1129; Internal 
Revenue Service Enterprise Computing Center Martinsburg (ECCM), 295 
Murall Drive, Kearneysville, West Virginia, 25436; Bureau of the Public 
Debt, P.O. Box 7015, Parkersburg, West Virginia, 26106-7015; and 
Financial Crimes Enforcement Network (FinCEN), P.O. Box 39, Vienna, 
Virginia 22183-0039.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    (1) Individuals who relate in any manner to official FinCEN efforts 
in support of the enforcement of the Bank Secrecy Act and money-
laundering and other financial crimes. Such individuals may include, 
but are not limited to, subjects of investigations and prosecutions; 
suspects in investigations; victims of such crimes; witnesses in such 
investigations and prosecutions; and close relatives and associates of 
any of these individuals who may be relevant to an investigation; (2) 
current and former FinCEN personnel whom FinCEN considers relevant to 
an investigation or inquiry; and (3) individuals who are the subject of 
unsolicited information possibly relevant to violations of law or 
regulations, who offer unsolicited information relating to such 
violations, who request assistance from FinCEN, and who make inquiries 
of FinCEN.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Every possible type of information that contributes to effective 
law enforcement and regulation of financial institutions may be 
maintained in this system of records, including, but not limited to, 
subject files on individuals, corporations, and other legal entities; 
information provided pursuant to the Bank Secrecy Act or any other 
authority exercised by FinCEN to compel the reporting of records; 
information gathered pursuant to search warrants; statements of 
witnesses; information relating to past queries of the FinCEN Data 
Base; criminal referral information; complaint information; identifying 
information regarding witnesses, relatives, and associates; 
investigative reports; and intelligence reports. Records include 
queries and the results of queries made by FinCEN customers (see 
discussions of SAR System Users and BSA Report System Users in the 
system of records notices for Suspicious Activity Reporting System--
Treasury/FinCEN.002 and Bank Secrecy Act Reports System--Treasury/
FinCEN.003, respectively), and by FinCEN employees on behalf of 
investigatory agencies, financial intelligence units, other FinCEN 
customers, and FinCEN itself. Authority for maintenance of the system: 
5 U.S.C. 301, 31 U.S.C. 5311-5314, 5316-5332; 31 U.S.C. 310; 31 CFR 
chapter X; Pub. L. 111-195, 124 Stat. 1312; Treasury Department Order 
180-01 (September 26, 2002).

PURPOSE(S):
    The purpose of this system of records is to support FinCEN's 
efforts to provide a government-wide, multi-source intelligence and 
analytical network to support the detection, investigation, and 
prosecution of domestic and international money laundering and other 
financial crimes, and other domestic and international criminal, tax, 
and regulatory investigations and proceedings, including examinations, 
and to support the conduct of

[[Page 60017]]

intelligence or counterintelligence activities, including analysis, to 
protect against international terrorism. A FinCEN Investigations and 
Examinations System User is an agency or organization that has been 
granted access to the information in this system.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    Records in this system may be used to:
    (1) Provide responses to queries from Federal, State, territorial 
and local law enforcement and regulatory agencies, both foreign and 
domestic, regarding Bank Secrecy Act and other financial crime 
enforcement;
    (2) Furnish information to other Federal, State, local, 
territorial, and foreign law enforcement and regulatory agencies 
responsible for investigating or prosecuting the violations of, or for 
enforcing or implementing a statute, rule, regulation, order, or 
license, where FinCEN becomes aware of an indication of a violation or 
potential violation of civil or criminal law or regulation;
    (3) Furnish information to the Department of Defense, to support 
its role in the detection and monitoring of aerial and maritime transit 
of illegal drugs into the United States and any other role in support 
of law enforcement that the law may mandate;
    (4) Respond to queries from INTERPOL in accordance with agreed 
coordination procedures between FinCEN and INTERPOL;
    (5) Furnish information to individuals and organizations, in the 
course of enforcement efforts, to the extent necessary to elicit 
information pertinent to financial law enforcement;
    (6) Furnish information to 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, in response to a subpoena, or 
in connection with civil or criminal law proceedings;
    (7) Furnish information to the news media in accordance with the 
guidelines contained in 28 CFR 50.2, which relate to civil and criminal 
proceedings;
    (8) Provide information or records to the United States 
Intelligence Community, within the meaning of Executive Order 12333 
(December 4, 1981) as amended, to further those agencies' efforts with 
respect to national security consistent with applicable law;
    (9) Disclose information or records to any person with whom FinCEN, 
ECCD, ECCM, or a FinCEN Investigations and Examinations System User 
contracts to provide consulting, data processing, clerical, secretarial 
functions, and other services relating to the official programs and 
operations of FinCEN, ECCD, ECCM, or the FinCEN Investigations and 
Examinations System User; and
    (10) To appropriate agencies, entities, and persons when (a) FinCEN 
suspects or has confirmed that the security or confidentiality of 
information in the system of records has been compromised; (b) FinCEN 
has determined that as a result of the suspected or confirmed 
compromise there is a risk of harm to economic or property interests, 
identity theft or fraud, or harm to the security or integrity of this 
system or other systems or programs (whether maintained by FinCEN or 
another agency or entity) that rely upon the compromised information; 
and (c) the disclosure made to such agencies, entities, and persons is 
reasonably necessary to assist in connection with FinCEN's efforts to 
respond to the suspected or confirmed compromise and prevent, minimize, 
or remedy such harm.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Magnetic media and other electronic format and on hard paper copy.

RETRIEVABILITY:
    By name, address, or other unique identifier.

SAFEGUARDS:
    Electronic records are password protected. Records are maintained 
in buildings subject to 24-hour security. Access controls will not be 
less than those provided by Treasury security requirements. Access to 
individuals is granted based on roles and responsibilities.

RETENTION AND DISPOSAL:
    FinCEN personnel review records in this system each time a record 
is retrieved and on a periodic basis to see whether it should be 
retained or modified. Records in this system are updated periodically 
to reflect disposition of records in accordance with applicable law and 
record retention schedules.

SYSTEM MANAGER(S) AND ADDRESSES:
    Deputy Director, Financial Crimes Enforcement Network, P.O. Box 39, 
Vienna, VA 22183-0039.

NOTIFICATION PROCEDURE:
    This system is exempt from notification requirements, record access 
requirements, and requirements that an individual be permitted to 
contest its contents, pursuant to the provisions of 5 U.S.C. 
552a(j)(2), (k)(1), and (k)(2).

RECORD ACCESS PROCEDURES:
    See ``Notification procedure'' above.

CONTESTING RECORD PROCEDURES:
    See ``Notification procedure'' above.

RECORD SOURCE CATEGORIES:
    See ``Categories of individuals covered by the system'' above. 
Pursuant to the provisions of 5 U.S.C. 552a(j)(2), (k)(1), and (k)(2), 
this system is exempt from the requirement that the record source 
categories be disclosed.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    This system is exempt from 5 U.S.C. 552a(c)(3), (c)(4), (d)(1), 
(d)(2), (d)(3), (d)(4), (e)(1), (e)(2), (e)(3), (e)(4)(G), (H), and 
(I), (e)(5), (e)(8), (f), and (g) of the Privacy Act pursuant to 5 
U.S.C. 552a(j)(2), (k)(1), and (k)(2). See 31 CFR 1.36. Treasury/
FinCEN.002

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

SYSTEM LOCATION:
    The Internal Revenue Service Enterprise Computing Center Detroit 
(ECCD), 985 Michigan Avenue, Detroit, Michigan 48226-1129; Internal 
Revenue Service Enterprise Computing Center Martinsburg (ECCM), 295 
Murall Drive, Kearneysville, West Virginia, 25436; Bureau of the Public 
Debt, P.O. Box 7015, Parkersburg, West Virginia, 26106-7015; and 
Financial Crimes Enforcement Network (FinCEN), P.O. Box 39, Vienna, 
Virginia 22183-0039.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The SAR System contains information from forms including, but not 
limited to: Form TD F 90-22.47 (Suspicious Activity Report by 
Depository Institutions)--to be replaced by FinCEN 111; FinCEN 101 
(Suspicious Activity Report by the Securities and Futures Industries); 
FinCEN 102 (Suspicious Activity Report by Casinos and Card Clubs)--
formerly TD F 90-22.49; FinCEN 109 (Suspicious Activity Report by Money 
Services Business)--formerly TD F 90-22.56. The SAR System also will 
contain information from Form 111 (Bank Secrecy Act (BSA) Suspicious 
Activity Report), after that unified form for reporting suspicious 
activity is made effective. Information on these forms concerns:
    (1) Individuals who or entities that are known or suspected 
perpetrators of a known or suspected criminal violation, or pattern of 
criminal violations,

[[Page 60018]]

committed or attempted against a financial institution, or participants 
in a transaction or transactions conducted through the financial 
institution, that have been reported by the financial institution, 
either voluntarily, or because such a report is required under the 
rules of FinCEN and/or the rules of one or more of the Federal 
Supervisory Agencies.
    (2) Individuals who or entities that are participants in 
transactions, conducted or attempted by, at, or through a financial 
institution, that have been reported because the institution knows, 
suspects, or has reason to suspect that: (a) The transaction involves 
funds derived from illegal activities or is intended or conducted to 
hide or disguise funds or assets derived from illegal activities as 
part of a plan to violate or evade any law or regulation or to avoid 
any transaction reporting requirement under Federal law; (b) the 
transaction is designed to evade any regulations promulgated under 
Public Law 91-508, as amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 
1951-1959, and 31 U.S.C. 5311-5314, 5316-5332 (the BSA); (c) the 
transaction has no business or apparent lawful purpose or is not the 
sort in which the particular customer would normally be expected to 
engage, and the financial institution knows of no reasonable 
explanation for the transaction after examining the available facts, 
including the background and possible purpose of the transaction; or 
(d) the transaction involves use of the financial institution to 
facilitate criminal activity;
    (3) Individuals who are directors, officers, employees, agents, or 
otherwise affiliated with a financial institution;
    (4) Individuals who or entities that are actual or potential 
victims of a criminal violation or series of violations;
    (5) Individuals who are named as possible witnesses in connection 
with matters arising from any such report;
    (6) Individuals or entities named as preparers of any such report;
    (7) Individuals or entities named as persons to be contacted for 
assistance by government agencies in connection with any such report;
    (8) Individuals or entities who have or might have information 
about individuals or criminal violations described above;
    (9) Individuals or entities involved in evaluating or investigating 
any matters arising from any such report;
    (10) Individuals, entities or organizations suspected of engaging 
in terrorist and other criminal activities and any person who may be 
affiliated with such individuals, entities or organizations;
    (11) Individuals or entities named by financial institutions as 
persons to be contacted for further assistance by government agencies 
in connection with individuals, entities or organizations suspected of 
engaging in terrorist or other criminal activities; and
    (12) Individuals or entities involved in evaluating or 
investigating any matters in connection with individuals, entities or 
organizations suspected of engaging in terrorist or other criminal 
activity.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The SAR System contains information reported to FinCEN by a 
financial institution (including, but not limited to, a depository 
institution, a money services business, a broker-dealer in securities, 
an insurance company, and a casino) on a Suspicious Activity Report 
(SAR) that is filed voluntarily or as required by FinCEN, one or more 
of the Federal Supervisory Agencies, and/or any other authority. The 
SAR System also may contain information that may relate to terrorist or 
other criminal activity that is reported voluntarily to FinCEN by any 
individual or entity through any other means, including through 
FinCEN's Financial Institutions Hotline. The SAR System also may 
contain information relating to individuals, entities, or organizations 
that, based on credible evidence, are suspected of engaging in 
terrorist or other criminal activities, including information provided 
to FinCEN from financial institutions regarding such individuals, 
entities, or organizations. SARs contain information about the 
categories of persons or entities specified in ``Categories of 
Individuals Covered by the System.'' Authority for maintenance of the 
system:The SAR System is established and maintained in accordance with 
31 U.S.C. 5318(g); 31 U.S.C. 321; and 31 U.S.C. 310; 31 CFR chapter X; 
Treasury Department Order 180-01 (September 26, 2002).

PURPOSE(S):
    The SAR requirements of FinCEN and the Federal Supervisory Agencies 
create an integrated process for reporting suspicious activity and 
known or suspected crimes by, at, or through depository institutions, 
certain of their affiliates, and certain other financial institutions. 
The process is based on a single, uniform SAR filed with FinCEN. The 
SAR System has been created, as a key part of this integrated reporting 
process, to permit coordinated and enhanced analysis and tracking of 
such information, and rapid dissemination of SAR information. 31 U.S.C. 
5318(g)(4)(B), which specifically requires that the agency designated 
as the repository for SARs refer those reports to appropriate law 
enforcement, supervisory and intelligence agencies, and 31 U.S.C. 5319 
and 31 U.S.C. 310, which require or permit the distribution of reports 
filed under the Bank Secrecy Act to federal, state and local agencies 
that engage in criminal, regulatory and tax investigations and 
proceedings, agencies that engage in intelligence and 
counterintelligence activities, including analysis, to protect against 
international terrorism, certain self-regulatory organizations, 
appropriate foreign agencies, and foreign financial intelligence units. 
A SAR System User is an agency or organization that has been granted 
access to the information in this system. SAR System Users include the 
Federal Supervisory Agencies, Federal law enforcement agencies 
(including the Federal Bureau of Investigation, the Internal Revenue 
Service, the United States Secret Service, United States Customs and 
Border Protection, United States Immigration and Customs Enforcement, 
the Drug Enforcement Administration, and the Bureau of Alcohol, 
Tobacco, Firearms and Explosives), appropriate federal agency Inspector 
General Offices having criminal law enforcement powers under the 
Inspector General Act of 1978 or comparable authority, the Executive 
Office of the United States Attorneys and the Offices of the 93 United 
States Attorneys, the Securities and Exchange Commission (SEC), the 
Commodity Futures Trading Commission (CFTC), the Federal Trade 
Commission, the Intelligence Community, federal agencies conducting or 
supporting national security background investigations under Executive 
Order 12968 as amended, the Government Accountability Office, State 
financial institution supervisory and regulatory agencies, State tax 
agencies, State and local law enforcement agencies, and self-regulatory 
organizations authorized by the SEC and CFTC.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    These records may be used to:
    (1) Provide information or records, electronically or manually, to 
a SAR System User relevant to the enforcement, regulatory, and 
supervisory programs and operations of that User;
    (2) Provide a SAR System User, and if applicable the unit within an 
Executive Department to which the SAR System User reports, with reports 
that indicate the number, amount,

[[Page 60019]]

individual identity, and other details concerning potential violations 
of law that have been the subject of SARs;
    (3) Provide information or records to any appropriately authorized 
domestic governmental agency or self-regulatory organization charged 
with the responsibility of administering law, investigating or 
prosecuting violations of law, enforcing or implementing a statute, 
rule, regulation, order, or policy, or issuing a license, security 
clearance, contract, grant, or benefit, when relevant to the 
responsibilities of that agency or organization;
    (4) Provide information or records to any appropriately authorized 
non-United States governmental agency charged with the responsibility 
of administering law, investigating or prosecuting violations of law, 
enforcing or implementing a statute, rule, regulation, order, or 
policy, when relevant to the responsibilities of that agency;
    (5) Provide information or records, when appropriate, to an 
international authority or foreign government in accordance with law 
and bilateral or multilateral international agreements;
    (6) Disclose the existence, but not necessarily the content, of 
information or records pertaining to an investigation by a SAR System 
User, on behalf of and with the approval of that SAR System User, to 
another SAR System User, when FinCEN determines that such disclosure 
furthers the coordinated analysis and tracking of information among SAR 
System Users;
    (7) Provide information or records to the Department of Justice, or 
in a proceeding before a court, adjudicative body, or other 
administrative body before which a SAR System User is authorized to 
appear, when: (a) Any of the following is a party to litigation or has 
an interest in litigation: (i) the SAR System User or any component 
thereof, or (ii) any employee of the SAR System User in his or her 
official capacity, or (iii) any employee of the SAR System User where 
the Department of Justice or the SAR System User has agreed to 
represent the employee, or (iv) the United States; and (b) the SAR 
System User determines that litigation is likely to affect the SAR 
System User or any of its components; (c) the SAR System User deems the 
use of such records by the Department of Justice or the SAR System User 
to be relevant and necessary to the litigation; provided, however, that 
in each case it has been determined that the disclosure is compatible 
with the purpose for which the records were collected;
    (8) Disclose information or records to individuals or entities to 
the extent necessary to elicit information pertinent to the 
investigation, prosecution, or enforcement of civil or criminal 
statutes, rules, regulations, or orders;
    (9) In accordance with Executive Order 12968 (August 2, 1995) as 
amended, provide information or records to any appropriate government 
authority to determine eligibility for access to classified information 
to the extent relevant for matters that are by statute permissible 
subjects of inquiry;
    (10) Provide information or records to the United States 
Intelligence Community, within the meaning of Executive Order 12333 
(December 4, 1981) as amended, to further those agencies' efforts with 
respect to national security in a manner consistent with applicable law 
and in the conduct of intelligence or counterintelligence activities, 
including analysis, to protect against international terrorism;
    (11) Furnish analytic and statistical reports to government 
agencies and the public providing information derived from SARs in a 
form in which individual identities are not revealed;
    (12) Disclose information or records to any person with whom 
FinCEN, ECCD, ECCM, or a SAR System User contracts to provide 
consulting, data processing, clerical, secretarial, or other services 
relating to the official programs and operations of FinCEN, ECCD, ECCM, 
or the SAR System User; and
    (13) Disclose information to appropriate agencies, entities, and 
persons when (a) FinCEN suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (b) FinCEN has determined that as a result of the 
suspected or confirmed compromise there is a risk of harm to economic 
or property interests, identity theft or fraud, or harm to the security 
or integrity of this system or other systems or programs (whether 
maintained by FinCEN or another agency or entity) that rely upon the 
compromised information; and (c) the disclosure made to such agencies, 
entities, and persons is reasonably necessary to assist in connection 
with FinCEN's efforts to respond to the suspected or confirmed 
compromise and prevent, minimize, or remedy such harm.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records are maintained in magnetic media and other electronic 
format and on hard paper copy.

RETRIEVABILITY:
    Data in the SAR System may be retrieved by particular data fields 
(e.g., name of financial institution or holding company, type of 
suspected violation, individual suspect name, witness name, and name of 
individual authorized to discuss the referral with government 
officials) or by the use of search and selection criteria.

SAFEGUARDS:
    Electronic records are password protected. Records are maintained 
in buildings subject to 24-hour security. Access controls will not be 
less than those provided by Treasury security requirements. Access to 
individuals is granted based on roles and responsibilities.

RETENTION AND DISPOSAL:
    Records in this system will be updated periodically to reflect new 
filings, amendments to existing filings, and disposition of records in 
accordance with applicable law and record retention schedules.

SYSTEM MANAGER AND ADDRESS:
    General Policy: Deputy Director, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, Virginia 22183- 0039. Computer Systems 
Maintenance and Administration: Director, IRS Enterprise Computing 
Center Detroit, 985 Michigan Avenue, Detroit, Michigan 48226-1129 and 
Director, IRS Enterprise Computing Center Martinsburg, 295 Murall 
Drive, Kearneysville, West Virginia, 25436.

NOTIFICATION PROCEDURE:
    This system is exempt from notification requirements, record access 
requirements, and requirements that an individual be permitted to 
contest its contents, pursuant to the provisions of 5 U.S.C. 552a(j)(2) 
and (k)(2).

RECORD ACCESS PROCEDURES:
    See ``Notification procedure'' above.

CONTESTING RECORD PROCEDURES:
    See ``Notification procedure'' above.

RECORD SOURCE CATEGORIES:
    Records in this system may be provided by or obtained from: 
Individuals; financial institutions and certain of their affiliates; 
Federal Supervisory Agencies; State financial institution supervisory 
agencies; domestic or foreign government agencies; foreign or 
international organizations; and commercial sources. Pursuant to the 
provisions of 5 U.S.C. 552a(j)(2) and (k)(2), this system is exempt 
from the requirement that the record source categories be disclosed.

[[Page 60020]]

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    This system is exempt from 5 U.S.C. 552a(c)(3), (c)(4), (d)(1), 
(d)(2), (d)(3), (d)(4), (e)(1), (e)(2), (e)(3), (e)(4)(G), (e)(4)(H), 
(e)(4)(I), (e)(5), (e)(8), (f), and (g) of the Privacy Act pursuant to 
5 U.S.C. 552a(j)(2) and (k)(2). See 31 CFR 1.36. Treasury/FinCEN.003

SYSTEM NAME:
    Bank Secrecy Act Reports System (the ``BSA System'')--Treasury/
FinCEN.

SYSTEM LOCATION:
    Currency and Banking Retrieval System, Internal Revenue Service 
Enterprise Computing Center Detroit (ECCD), 985 Michigan Avenue, 
Detroit, Michigan 48226-1129; Internal Revenue Service Enterprise 
Computing Center Martinsburg (ECCM), 295 Murall Drive, Kearneysville, 
West Virginia, 25436; Bureau of the Public Debt, P.O. Box 7015, 
Parkersburg, West Virginia, 26106-7015; Treasury Enforcement 
Communications System, United States Customs and Border Protection, 
Newington, 7681 Boston Boulevard, Springfield, Virginia 22153-3140; and 
Financial Crimes Enforcement Network (FinCEN), P.O. Box 39, Vienna, 
Virginia 22183-0039.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    See persons identified in the reports specified below under 
``Categories of Records in the System.'' Specifically, the BSA System 
contains information from forms including, but not limited to: FinCEN 
Form 104 (Currency Transaction Report)--formerly IRS Form 4789; FinCEN 
Form 103 (Currency Transaction Report by Casinos)-- formerly IRS Form 
8362; FinCEN Form 103N-rescinded 1/7/07 (Currency Transaction Report by 
Casinos-Nevada)--formerly IRS Form 8852; FinCEN Form 8300 (Report of 
Cash Payments Over $10,000 Received in a Trade or Business)--formerly 
IRS Form 8300; FinCEN Form 105 (Report of International Transportation 
of Currency or Monetary Instruments)--formerly Customs Form 4790; 
Treasury Form TDF 90-22.1 (Report of Foreign Bank and Financial 
Accounts); FinCEN Form 110 (Designation of Exempt Person)--formerly 
Treasury Form TDF 90-22.53; and FinCEN Form 107 (Registration of Money 
Services Businesses)--formerly Treasury Form TDF 90-22.55 (collectively 
BSA Reports); and Form 112 (Bank Secrecy Act Currency Transaction 
Report), after that unified form reporting transactions in currency is 
made effective.
    Information on these forms concerns: (1) Individuals or entities 
filing the reports; (2) individuals or entities that are the subjects 
of these reports; (3) individuals or entities that are participants in 
reportable transactions; (4) individuals who are directors, officers, 
employees, agents, or otherwise affiliated with a financial 
institution; (5) individuals or entities names as preparers of any such 
report; (6) individuals named as the owners of monetary instruments; 
and (7) individuals named as owners of financial accounts.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The BSA System contains information or reports filed under the Bank 
Secrecy Act and its implementing regulations (31 CFR chapter X) 
including, but not limited to, reports made on FinCEN Form 104 
(Currency Transaction Report); FinCEN Form 103 (Currency Transaction 
Report by Casinos); FinCEN Form 103N (Currency Transaction Report by 
Casinos-Nevada); FinCEN Form 8300 (Report of Cash Payments Over $10,000 
Received in a Trade or Business); FinCEN Form 105 (Report of 
International Transportation of Currency or Monetary Instruments); 
Treasury Form TDF 90-22.1 (Report of Foreign Bank and Financial 
Accounts); FinCEN Form 110 (Designation of Exempt Person); and FinCEN 
Form 107 (Registration of Money Services Businesses) (collectively BSA 
Reports). The BSA System also will contain information from Form 112 
(Bank Secrecy Act Currency Transaction Report), after that unified form 
reporting transactions in currency is made effective. These reports 
include names of financial institutions (including, but not limited to, 
depository institutions, money services businesses, broker-dealers in 
securities, insurance companies, and casinos), individuals and other 
entities filing the reports, names of financial institutions, 
individuals and entities that are the subjects of the reports, names of 
the owners of monetary instruments, account numbers, addresses, dates 
of birth and other personal identifiers, and the amounts of funds, 
currency or other monetary instruments that are associated with 
transactions, events, circumstances or decisions that trigger reporting 
requirements. (This system does not include Suspicious Activity 
Reports. Those reports are included in another system of records, 
``Suspicious Activity Reporting System--Treasury/FinCEN.002'').
    Authority for maintenance of the system: The BSA Report System is 
established and maintained in accordance with 12 U.S.C. 1829b and 1951-
1959; 31 U.S.C. 5311-5314, 5316-5332; 5 U.S.C. 301; 31 U.S.C. 310; 31 
CFR chapter X; Treasury Department Order 180-01 (September 26, 2002).

PURPOSE(S):
    The Bank Secrecy Act, codified at 12 U.S.C. 1829b and 1951-1959 and 
31 U.S.C. 5311-5314, 5316-5332 authorizes the Secretary of the Treasury 
to issue regulations requiring records and reports that are determined 
to have a high degree of usefulness in criminal, tax, and regulatory 
investigations and examinations, or in the conduct of intelligence or 
counterintelligence activities, including analysis, to protect against 
international terrorism. The Secretary's authority has been implemented 
through regulations promulgated at 31 CFR chapter X. The purpose of 
this system of records is to maintain the information contained in the 
reports required under these regulations. This information is 
distributed to federal, state and local agencies that engage in 
criminal, regulatory and tax investigations and proceedings, agencies 
that engage in intelligence and counterintelligence activities, certain 
self-regulatory organizations, appropriate foreign agencies, and 
foreign financial intelligence units. A BSA Report Systems User is an 
agency or organization that has been granted access to the information 
in this system. BSA Report System Users include the Federal Supervisory 
Agencies, Federal law enforcement agencies (including the Federal 
Bureau of Investigation, the Internal Revenue Service, the United 
States Secret Service, United States Customs and Border Protection, 
United States Immigration and Customs Enforcement, the Drug Enforcement 
Administration, and the Bureau of Alcohol, Tobacco, Firearms and 
Explosives), appropriate federal agency Inspector General Offices 
having criminal law enforcement powers under the Inspector General Act 
of 1978 or comparable authority, the Executive Office of the United 
States Attorneys and the Offices of the 93 United States Attorneys, the 
Securities and Exchange Commission (SEC), the Commodity Futures Trading 
Commission (CFTC), the Federal Trade Commission, the Intelligence 
Community, federal agencies conducting or supporting national security 
background investigations under Executive Order 12968 as amended, the 
Government Accountability Office, State financial institution 
supervisory and regulatory agencies, State tax agencies, State and 
local law enforcement agencies, and self-regulatory organizations 
authorized by the SEC and CFTC.

[[Page 60021]]

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSE OF SUCH USES:
    These records may be used to:
    (1) Provide information or records, electronically or manually, to 
a BSA Report System User relevant to the enforcement, regulatory, and 
supervisory programs and operations of that User;
    (2) Provide a BSA Report System User, and if applicable the unit 
within an Executive Department to which the BSA Report System User 
reports, with reports that indicate the number, amount, individual 
identity of participants, and other details concerning events or 
activities that have been the subject of a BSA Report;
    (3) Provide information or records to any appropriately authorized 
domestic governmental agency or self-regulatory organization charged 
with the responsibility of administering law, investigating or 
prosecuting violations of law, enforcing or implementing a statute, 
rule, regulation, order, or policy, or issuing a license, contract, 
grant, or other benefit when relevant to the responsibilities of that 
agency or organization;
    (4) Provide information or records to any appropriately authorized 
non-United States governmental agency charged with the responsibility 
of administering law, investigating or prosecuting violations of law, 
enforcing or implementing a statute, rule, regulation, order, or 
policy, when relevant to the responsibilities of that agency;
    (5) Provide information or records, when appropriate, to an 
international authority or foreign government in accordance with law 
and bilateral or multilateral international agreements;
    (6) Disclose relevant information on individuals to authorized 
Federal and State agencies through computer matching in order to help 
eliminate waste, fraud, and abuse in Government programs and identify 
individuals who are potentially in violation of civil law, criminal 
law, or regulation;
    (7) Disclose the existence, but not necessarily the content, of 
information or records pertaining to an investigation by a BSA Report 
System User, on behalf of and with the approval of that BSA Report 
System User, to another BSA Report System User, when FinCEN determines 
that such disclosure furthers the coordinated analysis and tracking of 
information among BSA Report System Users;
    (8) Disclose information to 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, in response to a subpoena, or 
in connection with criminal law proceedings;
    (9) Provide information to third parties during the course of an 
investigation to the extent necessary to obtain information pertinent 
to the investigation;
    (10) In accordance with Executive Order 12968 (August 2, 1995) as 
amended, provide information or records to any appropriate government 
authority to determine eligibility for access to classified information 
to the extent relevant for matters that are by statute permissible 
subjects of inquiry;
    (11) Provide information or records to the United States 
Intelligence Community, within the meaning of Executive Order 12333 
(December 4, 1981) as amended, to further those agencies' efforts with 
respect to national security in a manner consistent with applicable 
law, and in the conduct of intelligence or counterintelligence 
activities, including analysis, to protect against international 
terrorism;
    (12) Provide information to the news media, in accordance with 
guidelines contained in 28 CFR 50.2, that relates to an agency's 
functions relating to civil and criminal proceedings;
    (13) Disclose information or records to any person with whom 
FinCEN, ECCD, ECCM, or a BSA Report System User contracts to provide 
consulting, data processing, clerical, secretarial, or other services 
relating to the official programs and operations of FinCEN, ECCD, ECCM, 
or the BSA Report System User;
    (14) Disclose to the public information about Money Services 
Businesses that have registered with FinCEN pursuant to 31 CFR 
1022.380, other than information that consists of trade secrets, or 
that is privileged and confidential commercial or financial 
information; and
    (15) Disclose information to appropriate agencies, entities, and 
persons when (a) FinCEN suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (b) FinCEN has determined that as a result of the 
suspected or confirmed compromise there is a risk of harm to economic 
or property interests, identity theft or fraud, or harm to the security 
or integrity of this system or other systems or programs (whether 
maintained by FinCEN or another agency or entity) that rely upon the 
compromised information; and (c) the disclosure made to such agencies, 
entities, and persons is reasonably necessary to assist in connection 
with FinCEN's efforts to respond to the suspected or confirmed 
compromise and prevent, minimize, or remedy such harm.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records are maintained in magnetic media and other electronic 
format and on hard paper copy.

RETRIEVABILITY:
    By name and other unique identifier.

SAFEGUARDS:
    Electronic records are password protected. Records are maintained 
in buildings subject to 24-hour security. Access controls will not be 
less than those provided by Treasury security requirements. Access to 
individuals is granted based on roles and responsibilities.

RETENTION AND DISPOSAL:
    Records in this system will be updated periodically to reflect new 
filings, amendments to existing filings, and disposition of records in 
accordance with applicable law and record retention schedules.

SYSTEM MANAGER(S) AND ADDRESS:
    General Policy: Deputy Director, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, Virginia 22183- 0039. Computer Systems 
Maintenance and Administration: Director, IRS Enterprise Computing 
Center Detroit, 985 Michigan Avenue, Detroit, Michigan 48226-1129, 
Director, IRS Enterprise Computing Center Martinsburg, 295 Murall 
Drive, Kearneysville, West Virginia, 25436. and Director, Office of 
Information Technology, U.S. Customs and Border Protection, Newington, 
7681 Boston Boulevard, Springfield, Virginia 22153-3140.

NOTIFICATION PROCEDURE:
    This system is exempt from notification requirements, record access 
requirements, and requirements that an individual be permitted to 
contest its contents, pursuant to the provisions of 5 U.S.C. 552a(j)(2) 
and (k)(2).

RECORD ACCESS PROCEDURES:
    See ``Notification procedure'' above.

CONTESTING RECORD PROCEDURES:
    See ``Notification procedure'' above.

RECORD SOURCE CATEGORIES:
    Records in this system may be provided by or obtained from: 
Individuals; financial institutions and

[[Page 60022]]

certain of their affiliates; Federal Supervisory Agencies; State 
financial institution supervisory agencies; domestic or foreign 
government agencies; foreign or international organizations; and 
commercial sources. Pursuant to the provisions of 5 U.S.C. 552a(j)(2) 
and (k)(2), this system is exempt from the requirement that the Record 
source categories be disclosed.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    This system is exempt from 5 U.S.C. 552a(c)(3), (c)(4), (d)(1), 
(d)(2), (d)(3), (d)(4), (e)(1), (e)(2), (e)(3), (e)(4)(G), (e)(4)(H), 
(e)(4)(I), (e)(5), (e)(8), (f), and (g) of the Privacy Act pursuant to 
5 U.S.C. 552a(j)(2) and (k)(2). See 31 CFR 1.36.

    Dated: September 10, 2012.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
[FR Doc. 2012-24017 Filed 9-28-12; 8:45 am]
BILLING CODE 4810-02-P