[Federal Register Volume 85, Number 173 (Friday, September 4, 2020)]
[Notices]
[Pages 55354-55357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19590]


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DEPARTMENT OF THE TREASURY


Privacy Act of 1974; System of Records

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Notice of a new system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Department of the Treasury (Treasury), Departmental Offices proposes to 
establish a new Treasury system of records titled, ``Department of the 
Treasury, Departmental Offices .227--Committee on Foreign Investment in 
the

[[Page 55355]]

United States (CFIUS) Case Management System.''

DATES: Written comments must be received by October 5, 2020. The new 
routine uses will be applicable on October 5, 2020 unless Treasury 
receives comments and determines that changes to the system of records 
notice are necessary.

ADDRESSES: Written comments on this notice may be submitted 
electronically through the Federal government eRulemaking portal at 
http://www.regulations.gov. Electronic submission of comments allows 
the commenter maximum time to prepare and submit a comment, ensures 
timely receipt, and enables the Department of the Treasury (Treasury) 
to make the comments available to the public. Please note that comments 
submitted through https://www.regulations.gov will be public, and can 
be viewed by members of the public. Due to COVID-19-related 
restrictions, Treasury has temporarily suspended its ability to receive 
public comments by mail.
    In general, Treasury will post all comments to https://www.regulations.gov without change, including any business or personal 
information provided, such as names, addresses, email addresses, or 
telephone numbers. All comments received, including attachments and 
other supporting material, will be part of the public record and 
subject to public disclosure. You should only submit information that 
you wish to make publicly available.

FOR FURTHER INFORMATION CONTACT: For questions about this notice and 
privacy issues, contact: Ryan Law, Deputy Assistant Secretary for 
Privacy, Transparency, and Records at U.S. Department of the Treasury, 
1500 Pennsylvania Avenue NW, Washington, DC 20220; telephone: (202) 
622-5710.

SUPPLEMENTARY INFORMATION: In accordance with the Privacy Act of 1974, 
as amended (5 U.S.C. 552a), the Department of the Treasury (Treasury), 
Departmental Offices proposes to establish a new Treasury system of 
records titled, ``Department of the Treasury, Departmental Offices 
.227--Committee on Foreign Investment in the United States (CFIUS) Case 
Management System.''
    As background, in 2018, the Foreign Investment Risk Review 
Modernization Act of 2018 (FIRRMA), Subtitle A of Title XVII of Public 
Law 115-232, 132 Stat. 2173, was enacted. FIRRMA amends section 721 of 
the Defense Production Act of 1950, as amended (Section 721), which 
delineates the authorities and jurisdiction of Committee on Foreign 
Investment in the United States (CFIUS). FIRRMA maintains CFIUS's 
jurisdiction over any transaction that could result in foreign control 
of any U.S. business, and broadens the authorities of the President and 
CFIUS under Section 721 to review and take action to address any 
national security concerns arising from certain non-controlling 
investments and certain real estate transactions involving foreign 
persons.
    Executive Order 13456, 73 FR 4677 (January 23, 2008), directs the 
Secretary of the Treasury to issue regulations implementing Section 
721. On January 17, 2020, Treasury published two rules broadly 
implementing FIRRMA, and those rules took effect on February 13, 2020. 
85 FR 3112 and 85 FR 3158. Subsequent amendments were made to the 
regulations in 2020. 85 FR 8747 and 85 FR 45311.
    Pursuant to Section 721 and its implementing regulations, CFIUS 
assesses or reviews, and may subsequently investigate (in the case of a 
review), transactions that could result in foreign control of a U.S. 
business and certain non-controlling investments and certain real 
estate transaction involving foreign persons to determine the effects 
of such transactions on the national security of the United States. As 
part of CFIUS's national security processes, Treasury, as chair of 
CFIUS, disseminates information submitted by parties to the transaction 
and other available information to certain Executive Branch agencies. 
Among other things, CFIUS evaluates certain personal identifier 
information of individuals associated with the foreign person engaged 
in the transaction and certain parent entities (e.g., for purposes of 
conducting background checks), which informs CFIUS's determination of 
the effects of a transaction on the national security of the United 
States. At times, this may include personal identifier information of 
U.S. nationals if a U.S. national is a board member or officer of, has 
an ownership interest in, or has another relevant role related to, an 
entity engaged in a transaction before CFIUS or its parent entities. 
CFIUS may also receive certain personal identifier information of a 
U.S. national who is involved in a transaction as an individual if, for 
example, such individual is selling real estate in a transaction filed 
with CFIUS. In addition, CFIUS may collect personal identifier 
information for other purposes associated with its national security 
functions, including, for example, personal identifier information 
related to a security officer or other person who may be involved in 
mitigating a risk posed to national security.
    This new system of records supports CFIUS's collection of 
transaction information for analysis in the performance of its 
assessments, reviews and investigations of transactions, and for other 
purposes associated with its national security functions. The system 
may include records from other systems of records both within Treasury 
and in records provided by certain other Executive Branch agencies for 
the purpose of facilitating CFIUS's assessment, review and 
investigation of transactions. In maintaining its records, CFIUS is 
obligated to comply with its governing statute, and to the extent not 
inconsistent with that statute, generally applicable laws. Any records 
from another Treasury system of records or another Executive Branch 
agency's system of records for which an exemption is claimed under 5 
U.S.C. 552a(j) or (k), which may also be included in this system of 
records, retains the same exempt status such records have in the system 
for which such exemption is claimed. Additionally, pursuant to section 
721(c) of the Defense Production Act of 1950, as amended, 50 U.S.C. 
4565(c), and subject to certain exceptions provided therein, any 
information or documentary material filed with CFIUS under Section 721 
is exempt from disclosure under the Freedom of Information Act, as 
amended (FOIA), 5 U.S.C. 552, and no such information or documentary 
material may be made public.
    The related information collections have been submitted to the 
Office of Management and Budget (OMB) under control number 1505-0121.
    Additionally, Departmental Offices is issuing a separate Notice of 
Proposed Rulemaking to exempt this system of records from certain 
provisions of the Privacy Act.
    This established system will be included in Treasury's inventory of 
record systems. Below is the description of the Treasury, Departmental 
Offices .227--CFIUS Case Management System.
    Treasury provided a report of this system of records to the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Security and Governmental 
Affairs of the U.S. Senate, and the OMB, pursuant to 5 U.S.C. 552a(r) 
and OMB Circular A-108, ``Federal Agency Responsibilities for Review, 
Reporting, and Publication

[[Page 55356]]

under the Privacy Act,'' dated December 23, 2016.

Ryan Law,
Deputy Assistant Secretary for Privacy, Transparency, and Records.

SYSTEM NAME AND NUMBER:
    Department of the Treasury, Departmental Offices .227--Committee on 
Foreign Investment in the United States (CFIUS) Case Management System.

SECURITY CLASSIFICATION:
    Classified.

SYSTEM LOCATION:
    Records are maintained at the Departmental Offices: 1500 
Pennsylvania Avenue NW, Washington, DC 20220.

SYSTEM MANAGER(S):
    Departmental Offices:
    a. Director of Business Operations, Office of International 
Affairs, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220.
    b. Chief Information Officer, U.S. Department of the Treasury, 1750 
Pennsylvania Avenue NW, Washington, DC 20220.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    31 U.S.C. 321; 5 U.S.C. 301; 50 U.S.C. 4565; E.O. 11858, 12333, 
12968, and 13526, as amended; 85 FR 3112; 85 FR 3158; 85 FR 8747; 85 FR 
45311.

PURPOSE(S) OF THE SYSTEM:
    The purpose of this system is to collect information submitted by 
the parties to transactions assessed, reviewed or investigated by CFIUS 
and other available information related to such transactions, and 
disseminate such information to certain Executive Branch agencies to 
coordinate CFIUS's national security functions related to such 
transactions.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals for whom personal identifier information is needed by 
CFIUS to perform its national security functions. These individuals 
could include, for example, individuals in leadership or other 
positions in parties engaged in transactions filed with CFIUS or in 
such entities' parents, subsidiaries, or affiliates, individuals 
holding ownership interests or other roles in such entities, or 
individuals proposed to perform, or performing, security officer or 
other functions relating to mitigation of a national security threat, 
and individuals selling real estate or a business in a transaction 
filed with CFIUS.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The categories of ``personal identifier information'' listed at 31 
CFR 800.502(c)(5)(vi)(B) and 31 CFR 802.502(b)(3)(vi)(B), curriculum 
vitae (or other professional synopsis), and other information provided 
to or in possession of CFIUS. This includes:
     full name (last, first, middle name);
     all other names and aliases used;
     business address;
     nationality;
     country and city of residence;
     date of birth, in the format MM/DD/YYYY;
     place of birth;
     U.S. or foreign passport number (if more than one, all 
must be fully disclosed), nationality, date and place of issuance, and 
expiration date and, if a U.S. visa holder, the visa type and number, 
date and place of issuance, and expiration date; and
     dates and nature of foreign government and foreign 
military service (where applicable), other than military service at a 
rank below the top two non-commissioned ranks of the relevant foreign 
country.

RECORD SOURCE CATEGORIES:
    The information contained in these records may be provided by the 
individual who is the subject of the record, their representative, or 
the representative of a party to a transaction filed with CFIUS, or 
through other means.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    Only to the extent consistent with CFIUS's governing statute and 
confidentiality restrictions, including section 721 of the Defense 
Production Act of 1950, as amended (Section 721), and in addition to 
those disclosures generally permitted under the Privacy Act of 1974, as 
amended, 5 U.S.C. 552a(b), records and/or information or portions 
thereof maintained as part of this system may be disclosed outside 
Treasury as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
    (1) To appropriate agencies, entities and persons, including the 
United States Department of Justice (DOJ), when such records and/or 
information or portions thereof are relevant to any administrative or 
judicial action or proceeding;
    (2) To any domestic governmental entity, or to any foreign 
governmental entity of a United States ally or partner, under the 
exclusive direction and authorization of the chairperson of CFIUS, when 
such records and/or information or portions thereof are important to 
the national security analysis or actions of CFIUS, only to the extent 
necessary for national security purposes, and subject to appropriate 
confidentiality and classification requirements;
    (3) To the National Archives and Records Administration Archivist 
(or the Archivist's designee) pursuant to records management 
inspections being conducted under the authority of 44 U.S.C. 2904 and 
2906;
    (4) To appropriate agencies, entities, and persons when (1) 
Treasury suspects or has confirmed that there has been a breach of the 
system of records; (2) Treasury has determined that as a result of the 
suspected or confirmed breach there is a risk of harm to individuals, 
Treasury (including its information systems, programs, and operations), 
the Federal Government, or national security; and (3) the disclosure 
made to such agencies, entities, and persons is reasonably necessary to 
assist in connection with Treasury's efforts to respond to the 
suspected or confirmed breach or to prevent, minimize, or remedy such 
harm;
    (5) To another Federal agency or Federal entity, when Treasury 
determines that information from this system of records is reasonably 
necessary to assist the recipient agency or entity in (1) responding to 
a suspected or confirmed breach or (2) preventing, minimizing, or 
remedying the risk of harm to individuals, the recipient agency or 
entity (including its information systems, programs, and operations), 
the Federal Government, or national security, resulting from a 
suspected or confirmed breach;
    (6) To Executive Branch agencies, pursuant to Section 721, to 
assess, review and investigate transactions in respect of which the 
records or information were collected or any other transactions 
assessed, reviewed or investigated by CFIUS; and
    (7) To parties to transactions assessed reviewed or investigated by 
CFIUS, when CFIUS requires additional information or clarification on 
issues related to individuals who hold certain positions with respect 
to, or an ownership interest in, the entities engaged in such 
transactions or their subsidiaries, parents or affiliates, or 
individuals proposed to perform, or performing, security officer or 
other functions relating to mitigation of a national security threat, 
including monitoring of such mitigation, or are otherwise involved in 
the transaction.

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POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Records in this system are stored electronically on the Treasury 
Secure Data Network (the computer and infrastructure network Treasury 
uses to transmit classified information) or on paper in facilities and 
containers suitable for securing classified information.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records may be retrieved by an individual's name, Social Security 
number, national identity number or passport number.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records in this system are maintained according to the General 
Records Schedule 5.2, item 020, Intermediary Records. Records in this 
system are destroyed upon verification of successful creation of the 
final document or file, or when no longer needed for business use, 
whichever is later.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Records in this system are safeguarded in accordance with 
applicable rules and policies, including all applicable Treasury 
automated systems security and access policies. Strict controls have 
been imposed to minimize the risk of compromising the records in the 
system. Access to the computer system containing the records in this 
system is limited to those appropriately cleared individuals who have a 
need to know the information for the performance of their official 
duties.

RECORD ACCESS PROCEDURES:
    See ``Notification Procedures'' below.

CONTESTING RECORD PROCEDURES:
    See ``Notification Procedures'' below.

NOTIFICATION PROCEDURES:
    Pursuant to Section 721 and subject to certain exceptions provided 
therein, any information or documentary material filed with CFIUS, as 
the President's designee, under Section 721 is exempt from disclosure 
under the Freedom of Information Act, as amended (FOIA), 5 U.S.C. 552, 
and no such information or documentary material may be made public. 
Further, the Secretary of the Treasury has also exempted this system 
from the notification, access, and amendment procedures of the Privacy 
Act of 1974, as amended (Privacy Act), 5 U.S.C. 552a, because it 
contains classified information and investigatory material compiled for 
law enforcement purposes, other than material within the scope of 
subsection (j)(2) of the Privacy Act. Subject to the foregoing, 
Treasury's Departmental Offices will consider individual requests to 
determine whether or not information may be released. Thus, individuals 
seeking notification of and access to any record contained in this 
system of records, or seeking to contest its content, may inquire in 
writing in accordance with instructions appearing at 31 CFR part 1, 
subpart C, Appendices A-M. Requests for information and specific 
guidance on where to send requests for records may be addressed to 
Director, FOIA Services, Department of the Treasury, 1750 Pennsylvania 
Avenue NW, Washington, DC 20220.
    When seeking records about yourself from this system of records or 
any other Treasury system of records your request must conform with the 
Privacy Act regulations set forth in 31 CFR 1.26. While no specific 
form is required, you may obtain forms for this purpose from the 
Director, FOIA Services, Department of the Treasury, 1750 Pennsylvania 
Avenue NW, Washington, DC 20220.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    Certain records in this system are exempt from 5 U.S.C. 552a(c)(3), 
(d), (e)(1), (e)(4)(G), (H), and (I), and (f) of the Privacy Act 
pursuant to 5 U.S.C. 552a(k)(1) and (k)(2). See 31 CFR 1.36.
    Additionally, pursuant to Section 721 and subject to certain 
exceptions provided therein, any information or documentary material 
filed with CFIUS, as the President's designee, under Section 721 is 
exempt from disclosure under FOIA, and no such information or 
documentary material may be made public.
[FR Doc. 2020-19590 Filed 9-3-20; 8:45 am]
BILLING CODE 4810-25-P