Privacy Act of 1974; Proposed Implementation, 7121-7123 [2011-2869]

Agencies

• Office of the Secretary
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 76, Number 27 (Wednesday, February 9, 2011)]
[Proposed Rules]
[Pages 7121-7123]
From the Federal Register Online via the Government Printing 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 https://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 Brian.Bressman@do.treas.gov.

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]
BILLING CODE 4810-25-P