[Federal
Register: July 21, 2008 (Volume 73, Number 140)]
[Notices]
[Page
42405-42411]
From
the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jy08-117]
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DEPARTMENT
OF THE TREASURY
Financial
Crimes Enforcement Network; Privacy Act of 1974, as
Amended;
Systems of Records
AGENCY:
Financial Crimes Enforcement Network, Treasury.
ACTION:
Notice of systems of records.
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SUMMARY:
In accordance with the requirements of the Privacy Act of
1974,
as amended, 5 U.S.C. 552a, the Financial Crimes Enforcement
Network
(FinCEN), Treasury, is publishing its inventory of
Privacy Act
systems
of records.
SUPPLEMENTARY
INFORMATION: Pursuant to the Privacy Act of 1974 (5
U.S.C.
552a) and the Office of Management and Budget (OMB) Circular No.
A-130,
FinCEN has completed a review of its Privacy Act
systems of
records
notices to identify minor changes that will more accurately
describe
these records. FinCEN's Privacy Act system of records
notices
were
last published in their entirety on August 8, 2005, 70 FR 45756-
45761.
The changes throughout the document are
editorial in nature and
consist
principally of a changing the name of FinCEN.001 from ``FinCEN
Data
Base'' to ``FinCEN Investigations and Examinations
System.''
Changes
under ``system location'' and ``system manager,'' standardize
the
language regarding application of the exemptions claimed for each
system
of records under the headings ``notification procedure,''
``record
access procedures,'' or ``contesting record procedures.''
[[Page
42406]]
On May 22, 2007, the Office of Management
and Budget (OMB) issued
Memorandum
M-07-16 entitled ``Safeguarding Against and Responding to
the
Breach of Personally Identifiable Information.'' It required
agencies
to publish the routine use recommended by the President's
Identity
Theft Task Force. As part of that effort, the Department
published
the notice of the proposed routine use on October 3, 2007, at
72 FR
56434, and it was effective on November 13, 2007. The new routine
use
has been added to each FinCEN system of records
below.
Department of the Treasury regulations
require the Department to
publish
the existence and character of all systems of records every
three
years (31 CFR 1.23(a)(1)). At the same time that FinCEN
is
addressing
this requirement, it is addressing the requirement to review
its
current holding pursuant to M-07-16. With respect to its inventory
of
Privacy Act Systems of records, FinCEN has determined
that the
information
contained in its systems of records is accurate, timely,
relevant,
complete, and is the minimum necessary to maintain the proper
performance
of a documented agency function.
Systems
Covered by This Notice
This notice covers all systems of records
adopted by FinCEN up to
January
1, 2008. The systems notices are reprinted in their entirety
following
the Table of Contents.
Dated: July 11, 2008.
Elizabeth
Cuffe,
Deputy
Assistant Secretary for Privacy and Treasury Records.
Table
of Contents
Financial
Crimes Enforcement Network (FinCEN).
FinCEN.001--FinCEN Investigations and Examinations System [formerly:
FinCEN Data Base].
FinCEN.002--Suspicious
Activity Report System (the SAR System).
FinCEN.003--Bank
Secrecy Act Reports System.
Treasury/FinCEN.001
System
name:
FinCEN
Investigations and Examinations System--Treasury/FinCEN.
System
location:
The Financial Crimes Enforcement Network,
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; 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; and 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 et seq.; 31
U.S.C. 310; 31 CFR part
103;
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, other
financial
crimes, and other domestic and international criminal, tax,
and
regulatory investigations and examinations.
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
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) Furnish information to the Department
of State and the
Intelligence
Community to further those agencies' efforts with respect
to
national security and international and the foreign aspects of
international
narcotics trafficking; and
(9) 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
[[Page
42407]]
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 hard copy.
Retrievability:
By name, address, or other unique
identifier.
Safeguards:
All FinCEN
personnel accessing the system will have successfully
passed
a background investigation. FinCEN will furnish
information from
the
system of records to approved personnel only on a ``need to know''
basis
using passwords and access control. Procedural and physical
safeguards
to be utilized include the logging of all queries and
periodic
review of such query logs; compartmentalization of information
to
restrict access to authorized personnel; physical protection of
sensitive
hard copy information; encryption of electronic
communications;
intruder alarms; and 24-hour building guards. The
system
complies with all applicable security requirements of the
Department
of the Treasury.
Retention
and disposal:
FinCEN personnel
will review records each time a record is
retrieved
and on a periodic basis to see whether it should be retained
or
modified. FinCEN will dispose of all records after
twenty years.
Records
will be disposed of by erasure of magnetic media and by
shredding
and/or burning of hard copy documents.
System
manager(s) and addresses:
Deputy Director, Financial Crimes
Enforcement Network,
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
(ECCD),
Financial
Crimes Enforcement Network (FinCEN),
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 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. Information on these forms
concerns:
(1) Individuals or entities that are known
perpetrators or
suspected
perpetrators of a known or suspected federal criminal
violation,
or pattern of criminal violations, 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,
one or
more
of the Federal Supervisory Agencies (the Board of Governors of the
Federal
Reserve System (the Board), the Office of the Comptroller of
the
Currency (OCC), the Federal Deposit Insurance Corporation (FDIC),
the
Office of Thrift Supervision (OTS), and the National Credit Union
Administration
NCUA) (collectively, the ``Federal Supervisory
Agencies'')),
or both.
(2) Individuals 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, the transaction 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 the
Bank
Secrecy Act, Pub. L. 91-508, as amended, codified at 12 U.S.C.
1829b,
12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5331; or (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;
(3) Individuals who are directors,
officers, employees, agents, or
otherwise
affiliated with a financial institution;
(4) Individuals 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 and
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
[[Page
42408]]
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,
and a
casino) on a Suspicious Activity Report (``SAR'') that is filed
voluntarily
or as required under the authority of FinCEN, one or
more
of the
Federal Supervisory Agencies, or under 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, and
organizations
reasonably suspected based on credible evidence of
engaging
in terrorist or other criminal activities, including
information
provided to FinCEN from financial institutions
regarding
such
individuals, entities, and organizations. SARs
contain information
about
the categories of persons or entities specified in ``Categories
of
Individuals Covered by the system.'' The SAR System may also contain
records
pertaining to criminal prosecutions, civil actions, enforcement
proceedings,
and investigations resulting from or relating to SARs.
Additionally,
it will contain records pertaining to criminal
prosecutions,
civil actions, enforcement proceedings, and
investigations
relating to institutions required to file reports or
under
the supervision of one or more of the Federal Supervisory
agencies.
Authority
for maintenance of the system:
The 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 Part 103;
Treasury
Department Order 180-01 (September 26, 2002).
Purpose(s):
The 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
and
certain of their affiliates. 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
to appropriate law enforcement and supervisory agencies.
The
provisions of 31 U.S.C. 5318(g)(4)(B) specifically require that the
agency
designated as repository for SARs refer those reports
to any
appropriate
law enforcement or supervisory agency.
Data from the SAR System will be exchanged,
retrieved, and
disseminated,
both manually and electronically among FinCEN, the
Federal
Supervisory Agencies, appropriate Federal, State, and local law
enforcement,
regulatory, and tax agencies, and State banking
supervisory
agencies. Agencies to which information will be referred
electronically,
which in certain cases may involve electronic transfers
of
batch information, include the Federal Supervisory Agencies, the
Federal
Bureau of Investigation, the Internal Revenue Service, the
Protection,
Enforcement
Administration, Bureau of Alcohol, Tobacco, Firearms and
Explosives,
appropriate federal agencies' Inspector General Offices,
the
Executive Office of the
the 93
United States Attorneys, State bank supervisory agencies, and
certain
State law enforcement, regulatory, and tax agencies, which have
entered
into appropriate agreements with FinCEN.
Organizations to which
information
is regularly disseminated are referred to as SAR System
Users.
It is anticipated that information from the SAR System will also
be
disseminated to other appropriate Federal, State, or local law
enforcement,
regulatory and tax agencies that enter into appropriate
agreements
with FinCEN. In addition, information may be disseminated
to
non-United
States financial regulatory and law enforcement agencies.
Routine
uses of records maintained in the system, including categories