[Federal Register Volume 79, Number 192 (Friday, October 3, 2014)]
[Proposed Rules]
[Pages 59699-59701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23012]


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DEPARTMENT OF THE TREASURY

31 CFR Part 1

RIN 1505-AC43


Privacy Act, Implementation

AGENCY: Departmental Offices, Treasury.

ACTION: Proposed rule.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, 5 U.S.C. 552a, the Department of the Treasury gives 
notice of a proposed amendment to update its Privacy Act regulations, 
and to add an exemption from certain provisions of the Privacy Act for 
a system of records related to the Office of Intelligence and Analysis.

DATES: Comments must be received no later than November 3, 2014.

ADDRESSES: Written comments should be sent to the Director Intelligence 
Information Systems, Office of Intelligence and Analysis, Department of 
the Treasury, 1500 Pennsylvania Ave. NW., Washington, DC 20220. The 
Department will make such comments available for public inspection and 
copying in the Department's Library, Room 1020, Annex Building, 1500 
Pennsylvania Ave. NW., Washington, DC 20220, on official business days 
between the hours of 10 a.m. and 5 p.m. Eastern Standard Time. You must 
make an appointment to inspect comments by telephoning (202) 622-0990 
(not a toll free number). You may also submit comments through the 
Federal rulemaking portal at http://www.regulations.gov (follow the 
instructions for submitting comments). All comments, including 
attachments and other supporting materials, received are part of the 
public record and subject to public disclosure. You should submit only 
information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Director Intelligence Information 
Systems, Office of Intelligence and Analysis, Department of the 
Treasury, at (202) 622-1826, facsimile (202) 622-1829, or email 
[email protected].

SUPPLEMENTARY INFORMATION: The Department is establishing ``Treasury/
DO. 411--Intelligence Enterprise Files,'' maintained by the Office of 
Intelligence and Analysis.
    Under 5 U.S.C. 552a(k)(1), the head of an agency may promulgate 
rules to exempt a system of records from certain provisions of 5 U.S.C. 
552a if the system of records is subject to the provisions of 5 U.S.C. 
552(b)(1), which regards matters specifically authorized under criteria 
established by an Executive

[[Page 59700]]

order to be kept secret in the interest of national defense or foreign 
policy and are in fact properly classified pursuant to such Executive 
order.
    To the extent that records in this system of records contain 
information subject to the provisions of 5 U.S.C. 552(b)(1), the 
Department of the Treasury proposes to exempt those records from the 
following provisions of the Privacy Act pursuant to 5 U.S.C. 
552a(k)(1):
    (1) From subsection 5 U.S.C. 552a(c)(3) (Accounting for 
Disclosures) because release of the accounting of disclosures of the 
records in this system could alert individuals whether they have been 
identified as a national security threat or the subject of an 
investigation related to the national security interests of the United 
States, including threats to the national security, foreign policy, or 
economy of the United States, to the existence of the investigation and 
reveal investigative interest on the part of the Department of the 
Treasury as well as the recipient agency. Disclosure of the accounting 
would present a serious impediment to efforts to protect national 
security interests by giving individuals an opportunity to learn 
whether they have been identified as suspects or subjects of a national 
security-related 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 the scope of the investigation;
    (v) Begin, continue, or resume conduct that may pose a threat to 
national security upon inferring they may not be part of an 
investigation because their records were not disclosed; or
    (vi) Destroy information relevant to the national security 
investigation.
    (2) From subsection 5 U.S.C. 552a(d)(1), (d)(2), (d)(3), and 
(d)(4), (Access to Records) because access to a portion of the records 
contained in this system of records could inform individuals whether 
they have been identified as a national security threat or the subject 
of an investigation related to the national security interests of the 
United States, including threats to the national security, foreign 
policy, or economy of the United States, to the existence of the 
investigation and reveal investigative interest on the part of the 
Department of the Treasury or another agency. Access to the records 
would present a serious impediment to efforts to protect national 
security interests by permitting the individual who is the subject of a 
record to learn whether they have been identified as suspects or 
subjects of a national security-related investigation. Access to such 
knowledge would impair the Department's ability to carry out its 
mission, since individuals could take steps to impede the investigation 
and avoid detection or apprehension, including the steps described in 
paragraph (1)(i)-(vi) of this section. Amendment of the records would 
interfere with ongoing investigations and law enforcement activities 
and impose an impossible administrative burden by requiring 
investigations to be continuously reinvestigated. The information 
contained in the system may also include classified information, the 
release of which would pose a threat to the national security, foreign 
policy, or economy of the United States. In addition, permitting access 
and amendment to such information could disclose sensitive security 
information that could be detrimental to the Department of the 
Treasury.
    (3) From subsection 5 U.S.C. 552a(e)(1), (Relevance and Necessity 
of Information) because in the course of its operations, OIA must be 
able to review information from a variety of sources. What information 
is relevant and necessary may not always be apparent until after the 
evaluation is completed. In the interests of national security, it is 
appropriate to include a broad range of information that may aid in 
identifying and assessing the nature and scope of terrorist or other 
threats to the United States. Additionally, investigations into 
potential violations of federal law, the accuracy of information 
obtained or introduced, occasionally may be unclear or the information 
may not be strictly relevant or necessary to a specific investigation. 
In the interests of effective enforcement of federal laws, it is 
appropriate to retain all information that may aid in establishing 
patterns of suspicious or unlawful activity.
    (4) From subsection 5 U.S.C. 552a(e)(4)(G), (H), and (I) (Agency 
Requirements), and 5 U.S.C. 552a(f), because portions of this system 
are exempt from the access and amendment provisions of subsection (d). 
The reason for invoking the exemption is to protect material authorized 
to be kept secret in the interest of national security, which includes 
threats to the national security, foreign policy, or economy of the 
United States, pursuant to Executive Orders 12968, 13526, successor or 
prior Executive Orders, and other legal authorities relevant to the 
intelligence responsibilities of the Department of the Treasury.
    The Department of the Treasury will publish separately in the 
Federal Register a notice of a proposed system of records related to 
the records maintained by OIA entitled ``Treasury/DO. 411--Intelligence 
Enterprise Files.''
    As required by Executive Order 12866, it has been determined that 
this rule is not a significant regulatory action, and therefore, does 
not require a regulatory impact analysis. Pursuant to the requirements 
of the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, it is hereby 
certified that this rule will not have significant economic impact on a 
substantial number of small entities. The term ``small entity'' is 
defined to have the same meaning as the terms ``small business,'' 
``small organization,'' and ``small governmental jurisdiction'' as 
defined in the RFA.
    The proposed regulation, issued under section 552a(k) of the 
Privacy Act, is to exempt certain information maintained by the 
Department in the above system of records from notification, access, 
and amendment of a record by individuals. Inasmuch as the Privacy Act 
rights are personal, small entities, as defined in the RFA, are not 
provided rights under the Privacy Act and are outside the scope of this 
regulation.

List of Subjects in 31 CFR Part 1

    Privacy.

    Part 1, subpart C of title 31 of the Code of Federal Regulations is 
proposed to be amended as follows:

PART 1--[AMENDED]

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 is amended in paragraph (e)(1)(i) by adding an entry 
for ``DO .411--Intelligence Enterprise Files'' to the table in 
numerical order.


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

* * * * *
    (e) * * *
    (1) * * *
    (i) * * *

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                Number                            System name
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                                * * * * *
DO .411..............................  Intelligence Enterprise Files.
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[[Page 59701]]

    Dated: September 11, 2014.
Helen Goff Foster,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
[FR Doc. 2014-23012 Filed 10-2-14; 8:45 am]
BILLING CODE 4810-25-P