[Federal Register Volume 76, Number 27 (Wednesday, February 9, 2011)]
[Proposed Rules]
[Pages 7121-7123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-2869]
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DEPARTMENT OF THE TREASURY
Office of the Secretary
31 CFR Part 1
RIN 1505-AC28
Privacy Act of 1974; Proposed Implementation
AGENCY: Departmental Offices, Treasury
ACTION: Notice of proposed rulemaking.
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, 5 U.S.C. 552a, the Department of the Treasury gives notice of a
proposed amendment to this part to exempt a system of records from
certain provisions of the Privacy Act.
DATES: Comments must be received no later than March 11, 2011.
ADDRESSES: Written comments should be sent to the Department of the
Treasury, ATTN: Supervisory Fraud Specialist, Office of Financial
Stability (OFS), 1500 Pennsylvania Avenue, NW., Washington, DC 20220.
The Department will make such comments available for public inspection
and copying in the Department's Library, Room 1428, Main Treasury
Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, on
official business days between the hours of 10 a.m. and 5 p.m. Eastern
Time. You can make an appointment to inspect comments by telephoning
(202) 622-0990 (not a toll-free line). You may also submit comments
through the Federal rulemaking portal at http://www.regulations.gov
(follow the instructions for submitting comments). All comments,
including attachments and other supporting materials, received are part
of the public record and subject to public disclosure. You should
submit only information that you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: Brian Bressman, Department of the
Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220, at (202)
927-9219 (fax) or via electronic mail at [email protected].
SUPPLEMENTARY INFORMATION: The Department is establishing the Troubled
Asset Relief Program (TARP) Fraud Investigation Information System to
assist in carrying out its responsibilities under the Emergency
Economic Stabilization Act of 2008 (EESA). The TARP Fraud Investigation
Information System maintains information relevant to background
inquiries conducted on individuals who seek, receive or are entrusted
with TARP funds, and to complaints received and collected as part of
investigations pertaining to alleged fraud, waste, and/or abuse
committed against the TARP programs. Information in the system will
assist investigators in determining whether to: (a) Refer matters to
the Office of the Special Inspector General for the Troubled Asset
Relief Program (SIGTARP) for further investigation and resolution; (b)
refer matters to OFS Financial Agents and others for compliance review;
or (c) close matters with no further action to be taken. The Department
of the Treasury is publishing separately in the Federal Register a
notice of the new system of records.
Under 5 U.S.C. 552a(k)(2), the head of a Federal agency may
promulgate rules to exempt a system of records from certain provisions
of 5 U.S.C. 552a if the system of records is ``investigatory material
compiled for law enforcement
[[Page 7122]]
purposes, other than material within the scope of subsection (j)(2).''
To the extent that this system of records contain investigative
material within the provision of 5 U.S.C. 552a(k)(2), the Department of
the Treasury proposes to exempt the TARP Fraud Investigation
Information System from various provisions of the Privacy Act pursuant
to 5 U.S.C. 552a(k)(2).
The proposed exemption under 5 U.S.C. 552a(k)(2) for the reference
system of records is from provisions 5 U.S.C. 552a(c)(3), (d)(1),
(d)(2), (d)(3), (d)(4), (e)(1), (e)(4)(G), (e)(4)(H), (e)(4)(I), and
(f). Exemptions from these particular subsections are justified on a
case-by-case basis to be determined at the time a request is made for
the following reasons:
(1) 5 U.S.C. 552a(c)(3) requires an agency to make accountings of
disclosures of a record available to the individual named in the record
upon his or her request. The accountings must state the date, nature,
and purpose of disclosures of the record and the names and addresses of
recipients. Making accountings of disclosures available to the subjects
of investigations would alert them to the fact that an investigation is
being conducted into their activities as well as identify the nature,
scope, and purpose of that investigation. The subjects of
investigations, if provided an accounting of disclosures, would be able
to take measures to avoid detection or apprehension by destroying or
concealing evidence that would form the basis for detection or
apprehension.
(2) 5 U.S.C. 552a(d)(1), (e)(4)(H), and (f)(2), (3), and (5) grant
individual access, or concern procedures by which an individual may
gain access, to records pertaining to themselves. Disclosure of this
information to the subjects of investigations would provide individuals
with information concerning the nature and scope of any current
investigation, may enable them to avoid detection or apprehension, may
enable them to destroy or alter evidence of criminal conduct that would
form the basis for their arrest, and could impede the investigator's
ability to investigate the matter. In addition, permitting access to
investigative files and records could disclose the identity of
confidential sources and the nature of the information supplied by
informants as well as endanger the physical safety of those sources by
exposing them to possible reprisals for having provided the
information. Confidential sources and informers might refuse to provide
valuable information unless they believe that their identities would
not be revealed through disclosure of their names or the nature of the
information they supplied. Loss of access to such sources would
seriously impair the investigator's ability to perform its law
enforcement responsibilities. Furthermore, providing access to records
contained in the system of records could reveal the identities of
undercover law enforcement officers who compiled information regarding
the individual's criminal activities, thereby endangering the physical
safety of those undercover officers by exposing them to possible
reprisals. Permitting access in keeping these provisions would also
discourage other law enforcement and regulatory agencies, foreign or
domestic, from freely sharing information and thus would restrict
access to information necessary to accomplish it mission most
effectively.
(3) 5 U.S.C. 552a(d)(2), (3), and (4), (e)(4)(H), and (f)(4) permit
an individual to request amendment of a record pertaining to the
individual or concern related to procedures, and require the agency
either to amend the record or to note the disputed portion of the
record, and to provide a copy of the individual's statement of
disagreement with the agency's refusal to amend a record to persons or
other agencies to whom the record is thereafter disclosed. Since these
provisions depend upon the individual having access to his or her
records, and since an exemption from the provisions of 5 U.S.C. 552a
relating to access to records is proposed for the reasons set out in
the preceding paragraph of this section, these provisions should not
apply to the above-listed system or records.
(4) 5 U.S.C. 552a(e)(1) requires an 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 term ``maintain,'' as
defined in 5 U.S.C. 552a(a)(3), includes ``collect'' and
``disseminate.'' The application of this provision could impair the
investigator's ability to collect and disseminate valuable law
enforcement information. In the early stages of an investigation, it
may be impossible to determine whether information collected is
relevant and necessary, and information that initially appears
irrelevant and information developed subsequently, prove particularly
relevant and necessary to the investigation. Compliance with the above
records maintenance requirements would require the periodic up-dating
of information the Department collects and maintains to ensure that the
records in this system remain timely, accurate, and complete. Further,
the investigator may uncover evidence of violations of law that fall
within the investigative jurisdiction of other law enforcement
agencies. To promote effective law enforcement, the investigator will
refer this evidence to the appropriate authority for further
investigation.
(5) 5 U.S.C. 552a(e)(4)(G) and (f)(1) enable individuals to inquire
whether a system of records contains records pertaining to them.
Application of these provisions to the above-referenced systems of
records could allow individuals to learn whether they have been
identified as subjects of investigation. Access to such knowledge would
impair the investigator's ability to carry out the mission, since
individuals could take steps to avoid detection and destroy or hide
evidence needed to prove the violation.
(6) 5 U.S.C. 552a(e)(4)(I) requires an agency to publish a general
notice listing the categories of sources for information contained in a
system of records. Revealing sources for information could disclose
investigative techniques and procedures; result in threats or reprisals
against confidential informants by the subjects of investigations; and
cause confidential informants to refuse to give full information to
investigators for fear of having their identities as sources disclosed.
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.
Pursuant to the requirements of the Regulatory Flexibility Act
(RFA), 5 U.S.C. 601-612, it is hereby certified that this rule will not
have significant economic impact on a substantial number of small
entities. The term ``small entity'' is defined to have the same meaning
as the terms ``small business'', ``small organization'' and ``small
governmental jurisdiction'' as defined in the RFA.
The proposed regulation, issued under section 552a(k) of the
Privacy Act, is to exempt certain information maintained by the
Department in the above system of records from notification, access and
amendment of a record by individuals who are citizens of the United
States or an alien lawfully admitted for permanent residence. Inasmuch
as the Privacy Act rights are personal and apply only to U.S. citizens
or an alien lawfully admitted for permanent residence, small entities,
as defined in the RFA, are not provided rights under the Privacy Act
and are outside the scope of this regulation.
[[Page 7123]]
List of Subjects in 31 CFR Part 1
Privacy.
Part 1, subpart C of title 31 of the Code of Federal Regulations is
amended as follows:
PART 1--[AMENDED]
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.
2. Section 1.36 paragraph (g)(1)(i) 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 part.
* * * * *
(g) * * *
(1) * * *
(i) * * *
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Number System name.
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* * * * * * *
DO .225........................... TARP Fraud Investigation Information
System
* * * * * * *
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Dated: January 25, 2011.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency and Records.
[FR Doc. 2011-2869 Filed 2-8-11; 8:45 am]
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