25 September 2003
Source: http://www.access.gpo.gov/su_docs/aces/fr-cont.html

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[Federal Register: September 25, 2003 (Volume 68, Number 186)]
[Rules and Regulations]
[Page 55309-55312]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se03-5]

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DEPARTMENT OF THE TREASURY

31 CFR Part 1

RIN 1506-AA62


Financial Crimes Enforcement Network; Freedom of Information Act,
Privacy Act of 1974; Implementation

AGENCY: Department of the Treasury.

ACTION: Final Rule.

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SUMMARY: This document amends the Department of the Treasury's
regulations on the disclosure of records under the Freedom of
Information Act (FOIA) and its regulations concerning the Privacy Act
of 1974 (Privacy Act), by creating new appendices to this subpart
setting forth the administrative procedures by which the Financial
Crimes Enforcement Network (``FinCEN'') will process requests for
records made under the FOIA, and setting forth the administrative
procedures by which FinCEN will implement the Privacy Act.

EFFECTIVE DATE: September 25, 2003.

FOR FURTHER INFORMATION CONTACT: Christine Schuetz, Attorney-Advisor,
Office of Chief Counsel, FinCEN, at (703) 905-3590.

SUPPLEMENTARY INFORMATION: Prior to October 26, 2001, the date of
enactment of the Uniting and Strengthening America by Providing
Appropriate

[[Page 55310]]

Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT)
Act of 2001, Pub. L. 107-56, FinCEN was a Departmental Office of the
Department of the Treasury. As a result, FinCEN's FOIA procedures were
incorporated under Appendix A to 31 CFR part 1, subpart A, and its
Privacy Act procedures were incorporated under Appendix A to 31 CFR
part 1, subpart C. However, section 361 of the USA Patriot Act created
a new Section 310 in Subchapter I of chapter 3 of Title 31, United
States Code, making FinCEN a Treasury Bureau. See Treasury Order 180-
01, dated September 26, 2002. The FOIA and Privacy Act procedures of
bureaus of the Department of the Treasury are set out separately from
the procedures of Treasury's Departmental Offices in the Appendices to
subparts A and C of 31 CFR part 1. Therefore, this document amends 31
CFR part 1 in order to reflect FinCEN's new status as a Treasury
Bureau.
    In addition to several conforming changes, this document creates
two new appendices. Appendix M, setting forth FinCEN's FOIA procedures,
is added to 31 CFR part 1, subpart A. Appendix N, setting forth
FinCEN's Privacy Act procedures, is added to 31 CFR part 1, subpart C.
The new appendices do not substantively amend the procedures relating
to the way in which FinCEN currently handles FOIA and PA obligations as
a Treasury Departmental Office. However, the addresses, names and
titles of deciding officials have been amended to reflect FinCEN
information.
    FinCEN's three Privacy Act systems of records, previously named
``DO .200--FinCEN Database,'' ``DO .212--Suspicious Activity Reporting
System,'' and ``DO .213--Bank Secrecy Act Reports System,'' have been
re-numbered in order to properly identify the systems. This document
removes these systems of records from the table found at 31 CFR
1.36(c)(1), and creates a new table at new section (c)(xii) under the
heading ``Financial Crimes Enforcement Network.'' In the new table,
these re-numbered systems of records now read: ``FinCEN .001--FinCEN
Database,'' ``FinCEN .002--Suspicious Activity Reporting System,'' and
``FinCEN .003--Bank Secrecy Act Reports System.'' The contents of these
systems of records remain unchanged.
    For the same reasons described above, in the table following
paragraph (e) of 31 CFR 1.36, is being amended by removing
``Departmental Offices'' as the table heading and substituting
``Financial Crimes Enforcement Network'' and the system number has been
changed to ``FinCEN .001.'' Finally, this document removes the listing
of FinCEN's Privacy Act systems of records from the table appearing at
31 CFR 1.36(g)(i) and creates a new table, containing the re-numbered
systems of records, at new section (g)(xiii) under the heading
``Financial Crimes Enforcement Network.'' The Privacy Act exemptions
previously claimed with respect to the FinCEN systems of records
continue to be claimed. The exemptions pertaining to FinCEN.001--FinCEN
DataBase, FinCEN .002--Suspicious Activity Reporting System (SARS), and
FinCEN .003--Bank Secrecy Act Reports were last published on November
21, 2000, beginning at 65 FR 69865.
    These regulations are being published as a final rule because the
amendments do not impose any requirements on any member of the public.
These amendments are the most efficient means for the Treasury
Department to implement its internal requirements for complying with
the FOIA and the Privacy Act. Accordingly, pursuant to 5 U.S.C.
553(b)(B) and (d)(3), the Department of the Treasury finds good cause
that prior notice and other public procedure with respect to this rule
are impracticable and unnecessary and finds good cause for making this
rule effective on the date of publication in the Federal Register.
    In accordance with Executive Order 12866, it has been determined
that this final rule is not a ``significant regulatory action'' and,
therefore, does not require a Regulatory Impact Analysis.
    The regulation will not have a substantial direct effect on the
States, on the relationship between the national Government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, it is determined that this
final rule does not have federalism implications under Executive Order
13132.
    Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
    In accordance with the provisions of the Paperwork Reduction Act of
1995 (44 U.S.C. 3501 et seq.), the Department of the Treasury has
determined that this final rule will not impose new recordkeeping,
application, reporting, or other types of information collection
requirements.

List of Subjects in 31 CFR Part 1

    Freedom of Information; Privacy.

0
Part 1 of Title 31 of the Code of Federal Regulations is 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 is
issued under 5 U.S.C. 552, as amended. Subpart C also is issued
under 5 U.S.C. 552a.

Subpart A--Freedom of Information Act

0
2. Section 1.1 is amended by revising paragraphs (a)(1)(i)(k) and
(a)(2) and by adding paragraph (a)(1)(xiii) to read as follows:

Sec.  1.1  General.

    (a) * * *
    (1) * * *
    (i) * * *
    (k) The General Counsel and all offices reporting to such official,
including immediate staff; except legal counsel to the components
listed in paragraphs (a)(1)(i)(L), and (a)(1)(i)(S), and (a)(1)(ii)
through (xiii) of this section;
* * * * *
    (xiii) The Financial Crimes Enforcement Network.
    (2) For purposes of this subpart, the office of the legal counsel
for the components listed in paragraphs (a)(1)(ii) through (xiii) of
this section are to be considered a part of their respective bureaus.
Any office which is now in existence or may hereafter be established,
which is not specifically listed or known to be a component of any of
those listed in paragraphs (a)(1)(i) through (xiii) of this section,
shall be deemed a part of the Departmental Offices for the purpose of
making requests for records under this subpart.
* * * * *

0
3. Subpart A of 31 CFR part 1 is amended by adding Appendix M:

Appendix M--Financial Crimes Enforcement Network

    1. In general. This appendix applies to the Financial Crimes
Enforcement Network (FinCEN).
    2. Public Reading Room. FinCEN will provide a room on an ad hoc
basis when necessary. Contact Office of Regulatory Programs, FinCEN,
(202) 354-6400.
    3. Requests for records. Initial determinations under 31 CFR
1.5(h) as to whether to grant requests for records of FinCEN will be
made by the Freedom of Information Act/Privacy Act Officer, FinCEN.
Requests for records may be mailed to: Freedom of Information Act/
Privacy Act Request, Financial Crimes Enforcement Network, Post
Office Box 39, Vienna, VA 22183.
    4. Administrative appeal of initial determinations to deny
records. Appellate determinations under 31 CFR 1.5(i) with

[[Page 55311]]

respect to the records of FinCEN will be made by the Director of
FinCEN or the delegate of the Director. Appeals should be mailed to:
Freedom of Information Appeal, Post Office Box 39, Vienna, VA 22183.
    5. Delivery of process. Service of process will be received by

the Chief Counsel of FinCEN and shall be delivered to: Chief
Counsel, Financial Crimes Enforcement Network, Post Office Box 39,
Vienna, VA 22183.

Subpart C--Privacy Act

0
4. Section 1.20 is amended as follows:
0
a. Paragraph (a)(11) is revised.
0
b. Paragraph (m) is amended by removing the words ``The Office of
Thrift Supervision'' and adding in their place ``The Financial Crimes
Enforcement Network.''
0
c. The first sentence of the undesignated paragraph is revised.
    The revisions to Sec.  1.20 read as follows:

Sec.  1.20  Purpose and scope of regulations.

* * * * *
    (a) * * *
    (11) The General Counsel and all offices reporting to such
official, including immediate staff; except legal counsel to the
components listed in paragraphs (a)(17) and (b) through (m) of this
section;
* * * * *
    For purposes of this subpart, the office of the legal counsel for
the components listed in paragraphs (b), (c), (d), (e), (f), (g), (h),
(i), (j), (k), (l), and (m) of this section are to be considered a part
of such components. * * *

0
7. Section 1.36 is amended as follows:
0
a. Paragraph (c)(1)(i) is amended by removing ``DO .200--FinCEN
Database; DO .212--Suspicious Activity Reporting System (SARS), and DO.
213--Bank Secrecy Act Reports System'' from the table.
0
b. Paragraph (c)(1)(xiii) is added.
0
c. Paragraph (c)(2) is revised.
0
d. Paragraph (e)(1) is amended by removing ``Departmental Offices''
from the table heading and adding in its place ``Financial Crimes
Enforcement Network.'' Paragraph (e)(1) is further amended by removing
the entry ``DO .200'' and adding in its place ``FinCEN .001'' to the
table.
0
e. Paragraph (g)(1)(i) is amended by removing ``DO .200-FinCEN
Database; DO .212--Suspicious Activity Reporting System (SARS), and DO.
213--Bank Secrecy Act Reports System'' from the table.
0
f. Paragraph (g)(1)(xiii) is added.
0
g. Paragraph (g)(2) is revised.
0
h. Paragraph (m)(1)(xiii) is added.
0
i. Paragraph (m)(2) is revised.
    The amendments to Sec.  1.36 read as follows:

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

* * * * *
    (c) * * *
    (1) * * *
    (xiii) Financial Crimes Enforcement Network:

------------------------------------------------------------------------
               Number                           Name of System
------------------------------------------------------------------------
FinCEN .001.........................  FinCEN DataBase.
FinCEN .002.........................  Suspicious Activity Reporting
                                       System.
FinCEN .003.........................  Bank Secrecy Act Reports System.
------------------------------------------------------------------------

    (2) The Department hereby exempts the systems of records listed in
paragraphs (c)(1)(i) through (xiii) of this section from the following
provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(j)(2): 5 U.S.C.
552a(c)(3) and (4), 5 U.S.C. 552a(d)(1), (2), (3), (4), 5 U.S.C.
552a(e)(1), (2) and (3), 5 U.S.C. 552a(e)(4)(G), (H), and (I), 5 U.S.C.
552a(e)(5) and (8), 5 U.S.C. 552a(f), and 5 U.S.C. 552a(g).
* * * * *
    (g) * * *
    (1) * * *
    (xiii) Financial Crimes Enforcement Network:

------------------------------------------------------------------------
               Number                           Name of System
------------------------------------------------------------------------
FinCEN .001.........................  FinCEN Database.
FinCEN .002.........................  Suspicious Activity Reporting
                                       System.
FinCEN .003.........................  Bank Secrecy Act Reports System.
------------------------------------------------------------------------

    (2) The Department hereby exempts the systems of records listed in
paragraphs (g)(1)(i) through (xiii) of this section from the following
provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(2): 5 U.S.C.
552a(c)(3), 5 U.S.C. 552a(d)(1), (2), (3), (4), 5 U.S.C. 552a(e)(1), 5
U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
* * * * *
    (m) * * *
    (1) * * *
    (xiii) Financial Crimes Enforcement Network:
    (2) The Department hereby exempts the systems of records listed in
paragraph (m)(1)(i) through (xiii) of this section from the following
provisions of 5 U.S.C. 552a, pursuant to 5 U.S.C. 552a(k)(5): 5 U.S.C.
552a(c)(3), 5 U.S.C. 552a(d)(1), (2), (3), and (4), 5 U.S.C.
552a(e)(1), 5 U.S.C. 552a(e)(4)(G), (H), and (I), and 5 U.S.C. 552a(f).
* * * * *

0
7a. Subpart C of 31 CFR part 1 is amended by adding Appendix N:

Appendix N--Financial Crimes Enforcement Network

    1. In general. This appendix applies to the Financial Crimes
Enforcement Network (FinCEN). It sets forth specific notification
and access procedures with respect to particular systems of records,
and identifies the officers designated to make the initial
determinations with respect to notification and access to records
and accountings of disclosures of records. This appendix also sets
forth the specific procedures for requesting amendment of records
and identifies the officers designated to make the initial and
appellate determinations with respect to requests for amendment of
records. It identifies the officers designated to grant extensions
of time on appeal, the officers with whom ``Statements of
Disagreement'' may be filed, the officer designated to receive
service of process and the addresses for delivery of requests,
appeals, and service of process. In addition, it references the
notice of systems of records and notices of the routine uses of the
information in the system required by 5 U.S.C. 552a(4) and (11) and
published biennially by the Office of the Federal Register in
``Privacy Act Issuances.''
    2. Requests for notification and access to records and
accountings of disclosures. Initial determinations under 31 CFR
1.26, whether to grant requests for notification and access to
records and accountings of disclosures for FinCEN will be made by
the Freedom of Information/Privacy Act officer, FinCEN. Requests may
be mailed to: Privacy Act Request, Financial Crimes Enforcement
Network, Post Office Box 39, Vienna, VA 22183.
    3. Requests for amendments of records. Initial determinations
under 31 CFR 1.27(a) through (d) whether to grant requests to amend
records maintained by FinCEN will be made by the Freedom of
Information/Privacy Act officer, FinCEN. Requests may be mailed to:
Privacy Act Request, Financial Crimes Enforcement Network, Post
Office Box 39, Vienna, VA 22183.
    4. Verification of Identity. An individual seeking notification
or access to records, or seeking to amend a record, or seeking an
accounting of disclosures, must satisfy one of the following
identification requirements before action will be taken by FinCEN on
any such request:
    (i) An individual may establish identity through the mail by a
signature, address, and one other identifier such as a photocopy of
a driver's license or other official document bearing the
individual's signature.
    (ii) Notwithstanding this paragraph (4)(i), an individual may
establish identity by providing a notarized statement, swearing or
affirming to such individual's identity and to the fact that the
individual understands the penalties provided in 5 U.S.C. 552a(i)(3)
for requesting or obtaining access to records under false pretenses.
    (iii) Notwithstanding this paragraph (4)(i) and (ii), the
Freedom of Information Act/Privacy Act Officer or other designated
official may require additional proof of an

[[Page 55312]]

individual's identity before action will be taken on any request, if
such official determines that it is necessary to protect against
unauthorized disclosure of information in a particular case. In
addition, a parent of any minor or a legal guardian of any
individual will be required to provide adequate proof of legal
relationship before such person may act on behalf of such minor or
such individual.
    5. Administrative appeal of initial determinations refusing
amendment of records. Appellate determinations refusing amendment of
records under 31 CFR 1.27(e) including extensions of time on appeal
with respect to the records of FinCEN will be made by the Director
of FinCEN or the delegate of the Director. Appeals should be
addressed to: Privacy Act Amendment Appeal, Financial Crimes
Enforcement Network, Post Office Box 39, Vienna, VA 22183.
    6. Statements of Disagreement. ``Statements of Disagreement'' as
described in 31 CFR 1.27(e)(4) shall be filed with the official
signing the notification of refusal to amend at the address
indicated in the letter of notification within 35 days of the date
of such notification and should be limited to one page.
    7. Service of Process. Service of process will be received by
the Chief Counsel of FinCEN and shall be delivered to the following
location: Office of Chief Counsel, Financial Crimes Enforcement
Network, Post Office Box 39, Vienna, VA 22183.
    8. Biennial notice of systems of records. The biennial notice of
systems of records is published by the Office of the Federal
Register, as specified in 5 U.S.C. 552a(f). The publication is
entitled ``Privacy Act Issuances.'' Any specific requirements for
access, including identification requirements, in addition to the
requirements set forth in 31 CFR 1.26 and 1.27 and paragraph 4 of
this appendix are indicated in the notice for the pertinent system.

    Dated: September 8, 2003.
W. Earl Wright, Jr.,
Acting Chief Management and Administrative Programs Officer.
[FR Doc. 03-24227 Filed 9-24-03; 8:45 am]

BILLING CODE 4810-02-P