[Federal Register Volume 77, Number 190 (Monday, October 1, 2012)]
[Notices]
[Pages 60014-60022]
From the Federal Register Online via the Government Printing 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]]
regcomments@fincen.gov, 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