[Federal Register Volume 70, Number 11 (Tuesday, January 18, 2005)]
[Rules and Regulations]
[Pages 2805-2806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-916]
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DEPARTMENT OF THE TREASURY
31 CFR Part 1
Privacy Act of 1974; Implementation
AGENCY: Internal Revenue Service, Treasury.
ACTION: Final rule.
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, as amended, the Department of the Treasury exempts a new Internal
Revenue Service (IRS) system of records entitled ``IRS 42.031--Anti-
Money Laundering/Bank Secrecy Act (BSA) and Form 8300 Records'' from
certain provisions of the Privacy Act.
EFFECTIVE DATE: January 18, 2005.
FOR FURTHER INFORMATION CONTACT: IRS National Anti-Money Laundering
Program Manager, S: C: CP: RE: AML, 19th Floor, 1601 Market Street,
Philadelphia, PA 19106, phone (215) 861-1547.
SUPPLEMENTARY INFORMATION: The IRS published a notice of proposed
rulemaking on April 30, 2004 at 69 FR 23705-23706 exempting the new
system of records from certain provisions of the Privacy Act of 1974,
as amended. The IRS published the proposed system notice in its
entirety at 69 FR 23854 on April 30, 2004. No comments were received by
the IRS.
Under 5 U.S.C. 552a(k)(2), the head of an agency may promulgate
rules to exempt any system of records within the agency from certain
provisions of the Privacy Act if the system is investigatory material
compiled for law enforcement purposes. The exemption is from provisions
552a(c)(3), (d), (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and (f)
because the system contains investigatory material compiled for law
enforcement purposes. The following are the reasons why this system of
records maintained by the IRS is exempt pursuant to 5 U.S.C. 552a(k)(2)
of the Privacy Act of 1974.
(1) 5 U.S.C. 552a(c)(3). This provision of the Privacy Act provides
for the release of the disclosure accounting required by 5 U.S.C.
552a(c) (1) and (2) to the individual named in the record at his/her
request. The reasons for exempting this system of records from the
foregoing provision is:
(i) The release of disclosure accounting would put the subject of
an investigation on notice that an investigation exists and that such
person is the subject of that investigation.
(ii) Such release would provide the subject of an investigation
with an accurate accounting of the date, nature, and purpose of each
disclosure and the name and address of the person or agency to which
disclosure was made. The release of such information to the subject of
an investigation would provide the subject with significant information
concerning the nature of the investigation and could result in the
altering or destruction of documentary evidence, the improper
influencing of witnesses, and other activities that could impede or
compromise the investigation.
(iii) Release to the individual of the disclosure accounting would
alert the individual as to which agencies were investigating the
subject and the scope of the investigation and could aid the individual
in impeding or compromising investigations by those agencies.
(2) 5 U.S.C. 552a(d), (e)(4)(G), (e)(4)(H), and (f). These
provisions of the Privacy Act relate to an individual's right to be
notified of the existence of records pertaining to such individual;
requirements for identifying an individual who requested access to
records, the agency procedures relating to access to records and the
content of the information contained in such records and the civil
remedies available to the individual in the event of adverse
determinations by an agency concerning access to or amendment of
information contained in record systems. The reasons for exempting this
system of records from the foregoing provisions are as follows: To
notify an individual at the individual's request of the existence of an
investigative file pertaining to such individual or to grant access to
an investigative file pertaining to such individual could interfere
with investigative and enforcement proceedings; deprive co-defendants
of a right to a fair trial or an impartial adjudication; constitute an
unwarranted invasion of the personal privacy of others; disclose the
identity of confidential sources and reveal confidential information
supplied by such sources; and, disclose investigative techniques and
procedures.
(3) 5 U.S.C. 552a(e)(1). This provision of the Privacy Act requires
each agency to maintain in its records only such information about an
individual as is relevant and necessary to accomplish a purpose of the
agency required to be accomplished by statute or executive order. The
reasons for exempting this system of records from the foregoing are as
follows:
(i) The IRS will limit the Anti-Money Laundering/Bank Secrecy Act
(BSA) and Form 8300 Records to those relevant and necessary for
identifying, monitoring, and responding to
[[Page 2806]]
complaints, allegations and other information received concerning
violations or potential violations of the anti-money laundering
provisions of Title 31 and Title 26 laws. However, an exemption from
the foregoing is needed because, particularly in the early stages of an
investigation, it is not possible to determine the relevance or
necessity of specific information.
(ii) Relevance and necessity are questions of judgment and timing.
What appears relevant and necessary when first received may
subsequently be determined to be irrelevant or unnecessary. It is only
after the information is evaluated that the relevance and necessity of
such information can be established with certainty.
(4) 5 U.S.C. 552a(e)(4)(I). This provision of the Privacy Act
requires the publication of the categories of sources of records in
each system of records. The reasons an exemption from this provision
has been claimed are as follows:
(i) Revealing categories of sources of information could disclose
investigative techniques and procedures;
(ii) Revealing categories of sources of information could cause
sources that supply information to investigators to refrain from giving
such information because of fear of reprisal, or fear of breach of
promises of anonymity and confidentiality.
As required by Executive Order 12866, it has been determined that
this rule is not a significant regulatory action, and therefore, does
not require a regulatory impact analysis.
The regulation will not have a substantial direct effect on the
States, on the relationship between the Federal Government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, it is determined that this
rule does not have federalism implications under Executive Order 13132.
Pursuant to the requirements of the Regulatory Flexibility Act, 5
U.S.C. 601-612, it is hereby certified that these regulations will not
significantly affect a substantial number of small entities. The rule
imposes no duties or obligations on small entities.
In accordance with the provisions of the Paperwork Reduction Act of
1995, the Department of the Treasury has determined that this rule
would not impose new recordkeeping, application, reporting, or other
types of information collection requirements.
List of Subjects in 31 CFR Part 1
Privacy.
0
Part 1, subpart C 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 issued
under 5 U.S.C. 552 as amended. Subpart C also issued under 5 U.S.C.
552a.
0
2. Section 1.36 paragraph (g)(1)(viii) is amended by adding the
following text to the table in numerical order.
Sec. 1.36 Systems exempt in whole or in part from provisions of 5
U.S.C. 522a and this subpart.
* * * * *
(g) * * *
(1) * * *
(viii) * * *
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Number Name of system
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* * * * *
IRS 42.031................................ Anti-Money Laundering/Bank
Secrecy Act BSA) and Form
8300 Records.
* * * * *
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* * * * *
Dated: December 22, 2004.
Arnold I. Havens,
General Counsel.
[FR Doc. 05-916 Filed 1-14-05; 8:45 am]
BILLING CODE 4830-01-P