Privacy Act of 1974, as Amended, System of Records, 61853-61857 [2010-25133]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control
• Foreign Assets Control Office

[Federal Register Volume 75, Number 193 (Wednesday, October 6, 2010)]
[Notices]
[Pages 61853-61857]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-25133]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Privacy Act of 1974, as Amended, System of Records

AGENCY: Departmental Offices, Treasury.

ACTION: Notice of Consolidated Privacy Act System 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 Department of the Treasury, 
Departmental Offices, gives notice of a consolidated Privacy Act system 
of records.

DATES: Comments must be received no later than November 5, 2010. This 
consolidated system of records will be effective November 5, 2010 
unless the Office of Foreign Assets Control (OFAC) receives comments 
that would result in a contrary determination.

ADDRESSES: Comments should be sent to: Assistant Director, Disclosure 
Services, Office of Foreign Assets Control, Department of the Treasury, 
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 number). All comments, including attachments and other 
supporting materials, received are subject to public disclosure. You 
should submit only information that you wish to make available 
publicly.

FOR FURTHER INFORMATION CONTACT: Assistant Director, Disclosure 
Services, Office of Foreign Assets Control, Department of the Treasury, 
1500 Pennsylvania Avenue, NW., Washington, DC 20220, tel.: 202-622-2510 
(not a toll free number), or Chief Counsel (Foreign Assets Control), 
Office of General Counsel, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220, tel.: 202-622-2410 (not 
a toll free number).

SUPPLEMENTARY INFORMATION: This system of records exists within 
Treasury's Departmental Offices to manage records related to the 
implementation, enforcement, and administration of U.S. economic 
sanctions. The following systems of records are being consolidated and 
renamed as Treasury/DO .120--Records Related to Office of Foreign 
Assets Control Economic Sanctions:
    Treasury/DO .111--Office of Foreign Assets Control Census Records.
    Treasury/DO .114--Foreign Assets Control Enforcement Records.
    Treasury/DO .118--Foreign Assets Control Licensing Records.
    This notice of this system of records will provide the public with 
a better understanding of the purposes and uses of OFAC-related records 
and the public's access to these records. This system of records also 
supports determinations made by OFAC pursuant to Section 2002 of Public 
Law 106-386, Victims of Trafficking and Violence Protection Act of 
2000. Additionally, one of the purposes of this system of records is to 
provide the names and other identifying information (such as names and 
aliases, addresses, dates of birth, citizenship information, and 
identification numbers associated with government-issued documents) of 
individuals and entities whose property and interests in property are 
blocked or otherwise affected by one or more OFAC economic sanctions 
programs to assist the public in complying with those sanctions 
programs. OFAC provides this information to the public by publishing

[[Page 61854]]

a List of Specially Designated Nationals and Blocked Persons (SDN 
List). Individuals and entities on the SDN List are generally 
designated based on Executive orders and other authorities imposing 
sanctions with respect to terrorists, proliferators of weapons of mass 
destruction, sanctioned nations or regimes, narcotics traffickers, or 
other identified threats to the national security, foreign policy, and/
or economy of the United States. The SDN List also includes information 
identifying certain property of individuals and entities that are 
subject to OFAC economic sanctions programs, such as vessels. The 
relevant sanctions programs generally prohibit U.S. persons and certain 
others from engaging in transactions involving property and interests 
in property of the identified individuals and entities. A very small 
subset of the individuals on the SDN List consists of U.S. individuals. 
The List of Specially Designated Nationals and Blocked Persons is 
published in the Federal Register, the Code of Federal Regulations (as 
an appendix to 31 CFR chapter V), and on OFAC's Internet site (https://www.treas.gov/ofac).
    The Privacy Act generally prohibits an agency from disclosing any 
record contained in a system of records unless the individual to whom 
the record pertains has provided written consent. Subsection (b)(3) of 
the Privacy Act, however, provides that an agency may make a 
nonconsensual disclosure under a routine use for a purpose that is 
compatible with the purpose for which it collected the information. 
Disclosure of all information included in the SDN List is directly 
related to the purpose for which the information is collected and is 
necessary for the public and others to comply with the economic 
sanctions programs administered by OFAC.
    The Department will publish separately in the Federal Register a 
final rule amending 31 CFR 1.36(g)(1)(i) by revising the system number 
and title of the system of records for which an exemption has been 
claimed from certain of the Privacy Act's requirements pursuant to 5 
U.S.C. 552a(k)(2).
    In a second rulemaking initiative associated with this notice, the 
Department will publish separately in the Federal Register a proposed 
rule amending 31 CFR 1.26(g)(6)(ii)(A) and 1.36(e), (f) and adding a 
system of records for which an exemption will be claimed from 
provisions of the Privacy Act pursuant to 5 U.S.C. 552a(k)(1).
    As required by 5 U.S.C. 552a(r), a report of a consolidated system 
of records has been provided to the Committee on Oversight and 
Government Reform of the House of Representatives, the Committee on 
Homeland Security and Governmental Affairs of the Senate, and the 
Office of Management and Budget.
    The system of records entitled ``Treasury/DO .120--Records Related 
to Office of Foreign Assets Control Economic Sanctions'' is published 
in its entirety below.

    Dated: July 16, 2010.
 Melissa Hartman,
Acting Deputy Assistant Secretary for Privacy, Transparency, and 
Records.
Treasury/DO .120

System Name:
    Records Related to Office of Foreign Assets Control Economic 
Sanctions.

System Location:
    Office of Foreign Assets Control (OFAC), Treasury Annex, 
Washington, DC 20220 or other U.S. Government facilities.

Categories of Individuals Covered by the System:
    A system of records within Treasury's Departmental Offices exists 
to manage records related to the implementation, enforcement, and 
administration of U.S. economic sanctions. This includes records and 
information relating to individuals who:
    (1) Are or have been subject to investigation to determine whether 
they meet the criteria for designation or blocking and/or are 
determined to be designated or blocked individuals or otherwise subject 
to sanctions under the sanctions programs administered by OFAC, or with 
respect to whom information has been obtained by OFAC in connection 
with such an investigation;
    (2) Have engaged in or are suspected of having engaged in 
transactions and activities prohibited by Treasury Department 
regulations found at 31 CFR part 1, subpart B, chapter V, relevant 
statutes, and related Executive orders or proclamations, or with 
respect to whom information has been obtained by OFAC in connection 
with an investigation of such transactions and activities;
    (3) Are applicants for permissive and authorizing licenses or 
already hold valid licenses under Treasury Department regulations, 
relevant statutes, and related Executive orders or proclamations;
    (4) Hold blocked assets. Although most persons (individuals and 
entities) reporting the holding of blocked assets or persons holding 
blocked assets are not individuals, such reports and censuses conducted 
by OFAC identify a small number of U.S. individuals as holders of 
assets subject to U.S. jurisdiction which are blocked under the various 
sets of Treasury Department regulations involved, relevant statutes, 
and related Executive orders or proclamations; or
    (5) Have submitted claims received, reviewed, and/or processed by 
OFAC for payment determination pursuant to Section 2002 of the Victims 
of Trafficking and Violence Protection Act of 2000 (Pub. L. 106-386, 
Section 2002).

Categories of Records in the System:
    Records related to the implementation, enforcement, and 
administration of U.S. sanctions programs, including records related 
to:
    (1) Investigations to determine whether an individual meets the 
criteria for designation or blocking and/or is determined to be a 
designated or blocked individual or otherwise affected by one or more 
sanctions programs administered by OFAC. In the course of an 
investigation, personally identifiable information is collected. Once 
an individual is designated, OFAC provides personally identifiable 
information to the public so that it can recognize listed individuals 
and prevent them from accessing the U.S. financial system. The release 
of personally identifiable information pertaining to the designee is 
also important in helping to protect other individuals from being 
improperly identified as the sanctioned target. The personally 
identifiable information collected by OFAC may include, but is not 
limited to, names and aliases, dates of birth, citizenship information, 
addresses, identification numbers associated with government-issued 
documents, such as drivers license and passport numbers, and for U.S. 
individuals, Social Security numbers;
    (2) Suspected or actual violations of regulations, relevant 
statutes, and related Executive orders or proclamations administered by 
OFAC;
    (3) Applications for OFAC licenses--with attendant supporting 
documentary material and copies of licenses issued--related to engaging 
in activities with designated entities and individuals or other 
activities that otherwise would be prohibited by relevant statutes, 
regulations, and Executive orders or proclamations administered by 
OFAC, including reports by individuals and entities currently holding 
Treasury licenses concerning transactions which the license holder has 
conducted pursuant to the licenses;
    (4) Reports and censuses of assets blocked or held by U.S. 
individuals and entities which have been blocked at any

[[Page 61855]]

time since 1940 pursuant to Treasury Department regulations found at 31 
CFR part 1, subpart B, chapter V, relevant statutes, and related 
Executive orders or proclamations; or
    (5) Submitted claims received, reviewed, and/or processed by OFAC 
for payment determinations pursuant to Section 2002 of the Victims of 
Trafficking and Violence Protection Act of 2000 (Pub. L. 106-386).

Authority for Maintenance of the System:
    3 U.S.C. 301; 50 U.S.C. App. 1-44; 21 U.S.C. 1901-1908; 8 U.S.C. 
1182; 18 U.S.C. 2339B; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 
1601-1651; 50 U.S.C. 1701-1706; Pub. L. 110-286, 122 Stat. 2632; 22 
U.S.C. 2370(a); Pub. L. 108-19, 117 Stat. 631; Pub. L. 106-386 Sec.  
2002; Pub. L. 108-175, 117 Stat. 2482; Pub. L. 109-344, 120 Stat. 1869; 
31 CFR Chapter V.

Purpose(s):
    This system of records exists within Treasury's Departmental 
Offices to manage records related to the implementation, enforcement, 
and administration of U.S. economic sanctions by OFAC. Included in this 
system of records are records:
    (1) Relating to investigations into whether individuals and 
entities meet the criteria for economic sanctions under U.S. sanctions 
programs administered by OFAC. This portion of the system of records 
may be used during enforcement, designation, blocking, and other 
investigations, when applicable. These records are also used to produce 
the publicly issued List of Specially Designated Nationals and Blocked 
Persons (SDN List). The SDN List is used to publish information that 
will assist the public in identifying individuals and entities whose 
property and interests in property are blocked or otherwise affected by 
one or more sanctions programs administered by OFAC, as well as 
information identifying certain property of individuals and entities 
that are subject to OFAC economic sanctions programs, such as vessels.
    (2) Relating to investigations of individuals and entities 
suspected of violating statutes, regulations, or Executive orders 
administered by OFAC. Possible violations may relate to financial, 
commercial, or other transactions with persons with respect to whom 
sanctions have been imposed, including but not limited to foreign 
governments, blocked persons (entities and individuals), and specially 
designated nationals (entities and individuals). OFAC conducts civil 
investigations of possible violations. When it determines that a 
violation has occurred, OFAC issues a civil penalty or takes other 
administrative action, when appropriate. Criminal investigations of 
possible violations are conducted by relevant U.S. law enforcement 
agencies. OFAC refers criminal matters to those agencies and otherwise 
exchanges information with them in order to support the investigation 
and prosecution of possible violations. Records of enforcement 
investigations and resulting administrative actions are also used to 
generate statistical information. (3) Containing requests from U.S. and 
foreign individuals or entities for licenses to engage in commercial or 
humanitarian transactions, to unblock property and bank accounts, or to 
engage in other activities otherwise prohibited under economic 
sanctions administered by OFAC. This also includes information 
collected in the course of determining whether to issue a license and 
ensuring its proper use, as well as reports by individuals and entities 
currently holding Treasury licenses concerning transactions which the 
license holder has conducted pursuant to the licenses. This portion of 
the system of records may be used during enforcement investigations, to 
ascertain whether there is compliance with the conditions of ongoing 
OFAC licenses, and to generate information used in reports on the 
number and types of licenses granted or denied under particular 
sanctions programs.
    (4) Used to identify and administer assets of blocked foreign 
governments, groups, entities, or individuals. OFAC receives reports of 
asset blocking actions by U.S. entities and individuals when assets are 
blocked under the sanctions programs OFAC administers; when censuses 
are undertaken at various times for specific sanctions programs to 
identify the location, type, and value of property blocked under OFAC-
administered programs; and when OFAC obtains information regarding 
blockable assets in the course of its investigations. Most blocked 
asset information is obtained by requiring reports from all U.S. 
holders of blocked property subject to OFAC reporting requirements. The 
reports normally contain information such as the name of the U.S. 
holder, the account party, the location of the property, and a 
description of the type and value of the asset. In some instances, 
adverse claims by U.S. entities and individuals against the blocked 
property are also reported. This portion of the system of records may 
be used during enforcement, designation, blocking, and other 
investigations as well as to produce reports and respond to requests 
for information.
    (5) Used to support determinations made by OFAC pursuant to Section 
2002 of Pub. L. 106-386, the Victims of Trafficking and Violence 
Protection Act of 2000, including the facilitating of payments provided 
for under the Act. OFAC has reported its determinations to other parts 
of Treasury to facilitate payment on claims.

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) Disclose information to further the efforts of appropriate 
Federal, state, local, or foreign agencies in investigating or 
prosecuting the violations of, or for enforcing or implementing, a 
statute, rule, regulation, order, license, or agreement;
    (2) Disclose information to a Federal, state, local, or foreign 
agency, maintaining civil, criminal, or other relevant enforcement 
information or other pertinent information, which has requested 
information necessary or relevant to the requesting agency's official 
functions;
    (3) Disclose information to the Departments of State, Justice, 
Homeland Security, Commerce, Defense, or Energy, or other federal 
agencies, in connection with Treasury licensing policy or other matters 
of mutual interest or concern;
    (4) Provide information to appropriate national security and/or 
foreign-policy-making officials in the Executive branch to ensure that 
the management of OFAC's sanctions programs is consistent with U.S. 
foreign policy and national security goals;
    (5) Disclose information relating to blocked property to 
appropriate state agencies for activities or efforts connected to 
abandoned property;
    (6) Disclose information to a court, magistrate, or administrative 
tribunal in the course of presenting evidence, including disclosure to 
opposing counsel or witnesses in the course of civil discovery, 
litigation, or settlement negotiations, or in response to a Court 
order, or in connection with criminal law proceedings, when such 
information is determined to be arguably relevant to the proceeding;
    (7) Provide information to a Congressional office in response to an 
inquiry made at the request of the individual to whom the record 
pertains;
    (8) Disclose information to foreign governments and entities, and 
multilateral organizations--such as Interpol, the United Nations, and 
international financial institutions--

[[Page 61856]]

consistent with law and in accordance with formal or informal 
international agreements, or for an enforcement, licensing, 
investigatory, or national security purpose;
    (9) Provide information to third parties during the course of an 
investigation or an enforcement action to the extent necessary to 
obtain information pertinent to the investigation or to carry out an 
enforcement action;
    (10) Provide access to information to any agency, entity, or 
individual for purposes of performing authorized security, audit, or 
oversight operations or meeting related reporting requirements;
    (11) Disclose information to appropriate agencies, entities, and 
individuals when:
    (a) Treasury suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (b) Treasury 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 the Department or another agency or entity) that rely 
upon the compromised information; and (c) the disclosure made to such 
agencies, entities, and individuals is reasonably necessary to assist 
in connection with Treasury's efforts to respond to the suspected or 
confirmed compromise and prevent, minimize, or remedy such harm; or
    (12) Disclose information to the general public, in furtherance of 
OFAC's mission, regarding individuals and entities whose property and 
interests in property are blocked or otherwise affected by one or more 
OFAC economic sanctions programs, as well as information identifying 
certain property of individuals and entities subject to OFAC economic 
sanctions programs. This routine use includes disclosure of information 
to the general public in furtherance of OFAC's mission regarding 
individuals and entities that have been designated by OFAC. This 
routine use encompasses publishing this information in the Federal 
Register, in the Code of Federal Regulations, on OFAC's Web site, and 
by other means.
    The information associated with individuals as published on OFAC's 
List of Specially Designated Nationals and Blocked Persons (the SDN 
List) generally relates to non-U.S. entities and individuals, and, 
therefore, the Privacy Act does not apply to most of the individuals 
included on the SDN List. However, a very small subset of the 
individuals on the SDN List consists of U.S. individuals. Individuals 
and entities on the SDN List are generally designated based on 
Executive orders and other authorities imposing sanctions with respect 
to terrorists, proliferators of weapons of mass destruction, sanctioned 
nations or regimes, narcotics traffickers, or other identified threats 
to the national security, foreign policy, and/or economy of the United 
States. Generally, the personal identifier information provided on the 
SDN List may include, but is not limited to, names and aliases, 
addresses, dates of birth, citizenship information, and, at times, 
identification numbers associated with government-issued documents. It 
is necessary to provide this identifier information in a publicly 
available format so that listed individuals and entities can be 
identified and prevented from accessing the U.S. financial system. At 
the same time, the release of detailed identifier information of 
individuals whose property is blocked or who are otherwise affected by 
one or more OFAC economic sanctions programs is important in helping to 
protect other individuals from being improperly identified as the 
sanctioned target.
    Because the SDN List is posted on OFAC's public Web site and 
published in the Federal Register and in 31 CFR Appendix A, a 
designated individual's identifier information can be accessed by any 
individual or entity with access to the internet, the Federal Register, 
or 31 CFR Appendix A. Thus, the impact on the individual's privacy will 
be substantial, but this is necessary in order to make targeted 
economic sanctions effective. Designated individuals can file a ``de-
listing petition'' to request their removal from the SDN List. See 31 
CFR 501.807. If such a petition is granted, the individual's name and 
all related identifier information are removed from the active SDN 
List.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    As hard copy documents in file folders or magnetic or electronic 
media.

Retrievability:
    Records related to:
    (1) Enforcement, designation, blocking, and other investigations 
are retrieved by the name of the individual or other relevant search 
term.
    (2) Licensing applications are retrieved by license or letter 
number or by the name of the applicant.
    (3) Blocked property records are retrieved by the name of the 
holder, custodian, or owner of blocked property.
    (4) Claims received, reviewed, and processed by OFAC for payment 
determinations pursuant to Section 2002 of the Victims of Trafficking 
and Violence Protection Act of 2000, Public Law Number 106-386, are 
retrieved by the name of the applicant.

Safeguards:
    Folders maintained in authorized filing equipment are located in 
areas of limited and controlled access and are limited to authorized 
Treasury employees. Computerized records are on a password-protected 
network. Access controls for all internal, electronic information are 
not less than required by the Treasury Security Manual (TDP-71-10). The 
published List of Specially Designated Nationals and Blocked Persons is 
considered public domain.

Retention and Disposal:
    Records are managed according to applicable Federal Records 
Management laws and regulations (see also 5 U.S.C. Part I, Chapter 5, 
Subchapter II, Section 552a--Records Maintained on Individuals). Record 
retention and disposition rules are approved by the Archivist of the 
United States and applied appropriately.

System Manager and Address:
    Director, Office of Foreign Assets Control, Department of the 
Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220.

Notification Procedure:
    For records in this system that are unrelated to enforcement, 
designation, blocking, and other investigations, individuals wishing to 
be notified if they are named in this system of records must submit a 
written request containing the following elements: (1) Identify the 
record system; (2) identify the category and type of record sought; and 
(3) provide at least two items of secondary identification (date of 
birth, employee identification number, dates of employment, or similar 
information). Address inquiries to Assistant Director, Disclosure 
Services, Office of Foreign Assets Control, Department of the Treasury, 
1500 Pennsylvania Avenue, NW., Washington, DC 20220.
    For records in this system that are unrelated to enforcement, 
designation, blocking, and other investigations, individuals wishing to 
gain access to records maintained in the system under their name or 
personal identifier must

[[Page 61857]]

submit a written request containing the following elements: (1) 
Identify the record system; (2) identify the category and type of 
record sought; and (3) provide at least two items of secondary 
identification (date of birth, employee identification number, dates of 
employment, or similar information). Address inquiries to Assistant 
Director, Disclosure Services, Office of Foreign Assets Control, 
Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, 
DC 20220. The request must be made in accordance with 5 U.S.C. 552a and 
31 CFR 1.2. See also 31 CFR part 1, subpart C, appendix A, Paragraph 8.
    Records in this system that are related to enforcement, 
designation, blocking, and other investigations are exempt from the 
provisions of the Privacy Act as permitted by 5 U.S.C. 552a(k)(2). 
Exempt records may not be disclosed for purposes of determining if the 
system contains a record pertaining to a particular individual, 
inspecting records, or contesting the content of records. Although the 
investigative records that underlie the SDN List may not be accessed 
for purposes of inspection or for contest of content of records, the 
SDN List, which is produced from some of the investigative records in 
the system, is made public. Persons (entities and individuals) on this 
public list who wish to request the removal of their name from this 
list may submit a de-listing petition according to the provisions of 31 
CFR 501.807.

Record Access Procedures:
    Address inquiries to: Assistant Director, Disclosure Services, 
Office of Foreign Assets Control, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220.

Contesting Record Procedures:
    See ``Record access procedures'' above.

Record Source Categories:
    (1) From the individual, from OFAC investigations, and from other 
Federal, state, local, or foreign agencies;
    (2) Applicants for Treasury Department licenses under laws or 
regulations administered by OFAC;
    (3) From individuals and entities that are designated or otherwise 
subject to sanctions and the representatives of such individuals and 
entities; or
    (4) Custodians or other holders of blocked assets.

Exemptions Claimed for the System:
    Records in this system related to enforcement, designation, 
blocking, and other investigations are exempt from disclosure and 
review under 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), (e)(4)(H), 
(e)(4)(I), and (f) of the Privacy Act pursuant to 5 U.S.C. 552a(k)(2). 
See 31 CFR 1.36.

[FR Doc. 2010-25133 Filed 10-5-10; 8:45 am]
BILLING CODE 4811-45-P