[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Proposed Rules]
[Pages 15730-15734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7342]
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DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
31 CFR Part 1
[No. 94-260]
Privacy Act of 1974; Implementation
AGENCY: Office of Thrift Supervision, Treasury.
ACTION: Proposed rule.
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SUMMARY: The Office of Thrift Supervision (OTS) is proposing to exempt
a system of records from certain provisions of the Privacy Act of 1974,
5 U.S.C. 552a (Privacy Act), to the extent the system contains
investigatory material pertaining to the enforcement of laws or
compiled for law enforcement purposes. The OTS is also proposing to add
a Privacy Act exemption to an existing exempt system.
DATES: Comments must be received no later than April 26, 1995.
ADDRESSES: Send comments to: Director, Information Services Division,
Public Affairs, Office of Thrift Supervision, 1700 G Street, NW.,
Washington, DC 20552, Attention Docket No. 94-260. These submissions
may be hand delivered to 1700 G Street, NW., from 9 a.m. to 5 p.m. on
business days; they may be sent by facsimile transmission to FAX number
(202) 906-7753 or (202) 906-7755. Submissions must be received by 5
p.m. on the day that they are due in order to be considered by the OTS.
Comments will be available for inspection at 1700 G Street, NW., from 1
p.m. until 4 p.m. on business days. Visitors will be escorted to and
from the Public Reading Room at established intervals.
FOR FURTHER INFORMATION CONTACT:
Mary Ann Reinhart, Chief, Disclosure Branch, (202) 906-5896, 1700 G
Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION: The OTS is proposing to exempt the Criminal
Referral Database system of records from specified provisions of the
Privacy Act and to add an exemption to the Confidential Individual
Information System. Subsection (j)(2) of the Privacy Act provides that
an agency may promulgate rules to exempt any system of records within
the agency from any section of part 552a except subsections (b), (c)
(1) and (2), (e)(4) (A) through (F), (e) (6), (7), (9), (10), and (11),
and (i), provided that the system of records is maintained by ``the
agency or component thereof which performs as its principal function
any activity pertaining to enforcement of criminal laws'' and includes:
``(A) Information compiled for the purpose of identifying individual
criminal offenders and alleged offenders and consisting only of
identifying data and notations of arrests, the nature and disposition
of criminal charges, sentencing, confinement, release and parole and
probation status; (B) information compiled for the purpose of a
criminal investigation, including reports of informants and
investigators and associated with an identifiable individual; or (C)
reports identifiable to an individual compiled at any stage of the
process of enforcement of the criminal laws from arrest or indictment
through release from supervision.'' Section 552a(k) of the Privacy Act
provides that an agency may promulgate rules to exempt any system of
records within the agency from sections 552a (c)(3), (d), (e)(1),
(e)(4) (G) through (I), and (f) of the Act, pursuant to 5 U.S.C.
552a(k)(2), if the system of records is ``investigatory material
compiled for the law enforcement purposes, other than material within
the scope of subsection (j)(2) * * *.''
If a system of records is not exempted from these sections, the
Privacy Act generally requires the agency to: Make an accounting of
disclosures to the individual named in the record of their request;
permit individuals access to their records; permit individuals to
request amendment to their records; maintain only relevant or necessary
information in its system of records; publish certain information in
the Federal Register; and promulgate rules that establish procedures
for notice and disclosure of records. The exemptions that may be
asserted with respect to investigatory systems of record permit an
agency to protect information when disclosure would interfere with the
conduct of the agency's investigations.
Exemptions under subsections 552a(j)(2) and (k)(2) are necessary to
maintain the integrity and confidentiality of these investigative
files. These systems contain information on possible criminal
investigations and may indicate current administrative investigations
by OTS. The disclosure of this information would significantly impair
the enforcement activities and coordinated proceedings of OTS, other
financial institution regulatory agencies, and the Justice Department.
Disclosure form these systems would give [[Page 15731]] individuals an
opportunity to learn whether they have been identified as either
suspects or subjects of criminal referrals. This knowledge would
undermine the agency's mission of enforcing federal law, since
individuals could take steps to avoid detection; inform associates that
a referral had been made; begin, continue, or resume illegal conduct
upon learning that they are not identified in the system of records; or
destroy evidence needed to prove the violation. Individuals could alter
future wrongful acts to avoid detection by discovering the collection
of facts that would form the basis for a criminal referral, by enabling
them to destroy or alter evidence of unlawful conduct, and by learning
that investigators had reason to believe that there was a violation of
laws or regulations. Disclosure could, moreover, disclose the identity
of confidential sources and the nature of the information supplied and
thereby endanger the physical safety of sources of information by
exposing them to reprisals for having provided the information.
Confidential sources might refuse to provide valuable referrals if they
could not be secure in the knowledge that their identities would not be
revealed through disclosure of either their names or the nature of the
information they supplied. Loss of access to such sources would
seriously impair the OTS's and the Justice Department's ability to
carry out their mandates. Additionally, disclosure would reveal
investigative techniques and procedures, the knowledge of which could
enable individuals planning to engage in misconduct or crimes to
structure their operations in such a way as to avoid detection or
apprehension and thereby neutralize established investigative tools and
procedures of both OTS and the Justice Department. The imposition of
certain restrictions on the manner in which information is collected,
verified or retained could significantly impede the effectiveness of
investigation and could preclude the apprehension and successful
prosecution of persons engaged in fraud or other unlawful activity.
The OTS investigative files will contain information of the type
described in the (j)(2) and (k)(2) exemptions of the Privacy Act.
Authority for these systems are provided by 5 U.S.C. 301; 12 U.S.C.
1464, 1818. OTS will maintain information in these systems of records,
pursuant to its law enforcement and investigative functions, in order
to carry out these functions and its mission.
This rule is not a ``significant regulatory action'' under
Executive Order 12866 and will not require the approval of the Office
of Management and Budget; therefore, does not require a Regulatory
Impact Analysis.
Pursuant to the requirements of the Regulatory Flexibility Act, 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.
In accordance with the Paperwork Reduction Act of 1980, the
Department of the Treasury has determined that this proposed rule would
not impose new recordkeeping, application, reporting, or other types of
information collection requirements.
List of Subjects in 31 CFR Part 1
Privacy.
Part 1 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.
Sec. 1.36 [Amended]
2. Section 1.36 of subpart C is amended by adding the following
text at the end of the section as follows:
OFFICE OF THRIFT SUPERVISION
NOTICE OF EXEMPT SYSTEMS
In accordance with 5 U.S.C. 552a (j) and (k), general notice is
hereby given of rulemaking pursuant to the Privacy Act of 1974 by
the Acting Director, Office of Thrift Supervision, under authority
delegated to him by the Secretary of the Treasury. The Acting
Director, Office of Thrift Supervision, exempts the systems of
records identified in the paragraphs below from certain provisions
of the Privacy Act of 1974 as set forth in such paragraphs.
a. General exemptions under 5 U.S.C. 552a(j)(2). Pursuant to the
provisions of 5 U.S.C. 552a(j)(2), the Acting Director, Office of
Thrift Supervision, hereby exempts certain systems of records,
maintained by the Office of Thrift Supervision, from the provisions
of 5 U.S.C. 552a (c) (3) and (4)(D) (1), (2), (3) and (4), (e) (1),
(2), (3), (4) (G), (H) and (I), (5) and (8), (f) and (g).
1. Exempt systems. The following systems of records, which
contain information of the type described in 5 U.S.C. 552a(j)(2),
shall be exempt from the provisions of 5 U.S.C. 552a listed in
paragraph a. above except as otherwise indicated below and in the
general notice of the existence and character of systems of records
which appears elsewhere in the Federal Register
.001--Confidential Individual Information System
.004--Criminal Referral Database
2. Reasons for exemptions. (a) 5 U.S.C. 552a (e)(4)(G) and
(f)(1) enable individuals to be notified whether a system of records
contains records pertaining to them. The Office of Thrift
Supervision (OTS) believes that application of these provisions to
the above-listed systems of records would give individuals an
opportunity to learn whether they are on record either as suspects
or as suspects of an administrative investigation; this would
compromise the ability of the OTS to complete investigations and to
detect and apprehend violators of applicable laws in that
individuals would thus be able (1) to take steps to avoid detection,
(2) to inform co-conspirators of the fact that an investigation is
being conducted, (3) to learn the nature of the investigation to
which they are being subjected, (4) to learn the type of
surveillance being utilized, (5) to learn whether they are suspects
or identified law violators, (6) to continue or resume their illegal
conduct without fear of detection upon learning that they are not in
a particular system of records, and (7) to destroy evidence needed
to prove a violation.
(b) 5 U.S.C. 552a (d)(1), (e)(4)(H) and (f) (2), (3) and (5)
enable individuals to gain access to records pertaining to them. The
OTS believes that application of these provisions to the above-
listed systems of records would compromise its ability to complete
or continue administrative investigations and to detect and
apprehend violators of applicable laws. Permitting access to records
contained in the above-listed systems of records would provide
individuals with significant information concerning the nature of
the investigation, and this could enable them to avoid detection or
apprehension in the following ways: (1) By discovering the
collection of facts which would form the basis of an enforcement
action, and (2) by enabling them to destroy evidence of wrongful
conduct which would form the basis of an enforcement action.
Granting access to on-going or closed investigative files would also
reveal investigative techniques and procedures, the knowledge of
which could enable individuals planning illegal activity to
structure their future operations in such a way as to avoid
detection or apprehension, thereby neutralizing established
investigative techniques and procedures. Further, granting access to
investigative files and records could disclose the identities of
confidential sources and other informers and the nature of the
information which they supplied, thereby exposing them to possible
reprisals for having provided information related to the activities
of those individuals who are subjects of the investigative files and
records; confidential sources and other informers might refuse to
provide investigators with valuable information if they could not be
secure in the knowledge that their identities would not be revealed
through disclosure of either their names or the nature of the
information they supplied, and this would seriously impair the
ability of the OTS to [[Page 15732]] carry out its mandate to
enforce the applicable laws. Additionally, providing access to
records contained in the above-listed systems of records could
reveal the identities of individuals who compiled information
regarding illegal activities, thereby exposing them to possible
reprisals.
(c) 5 U.S.C. 552a(d) (2), (3) and (4), (e)(4)(H) and (f)(4),
which are dependent upon access having been granted to records
pursuant to the provisions cited in paragraph (b) above, enable
individuals to contest (seek amendment to) the content of records
contained in a system of records and require an agency to note an
amended record and to provide a copy of an individual's statement
(of disagreement with the agency's refusal to amend a record) to
persons or other agencies to whom the record has been disclosed. The
OTS believes that the reasons set forth in paragraph (b) above are
equally applicable to this subparagraph and, accordingly, those
reasons are hereby incorporated herein by reference.
(d) 5 U.S.C. 552a(c)(3) requires that an agency make accountings
of disclosures of records available to individuals named in the
records at their request; such accountings must state the date,
nature and purpose of each disclosure of a record and the name and
address of the recipient. The OTS believes that application of this
provision to the above-listed systems of records would impair the
ability of other law enforcement agencies to make effective use of
information provided by the OTS in connection with the
investigation, detection and apprehension of violators of the laws
enforced by those other law enforcement agencies. Making accountings
of disclosure available to violators would alert those individuals
to the fact that another agency is conducting an investigation into
their activities, and this could reveal the nature and purpose of
that investigation, and the dates on which that investigation was
active. Violators possessing such knowledge would thereby be able to
take appropriate measures to avoid detection or other apprehension
by altering their operations, or by destroying or concealing
evidence which would form the basis of an enforcement action. In
addition, providing violators with accountings of disclosure would
inform those individuals of general information, and alert them that
the OTS has information regarding their activities; this, in turn,
would afford those individuals a better opportunity to take
appropriate steps to avoid detection or apprehension.
(e) 5 U.S.C. 552a(c)(4) requires that an agency inform any
person or other agency about any correction or notation of dispute
made by the agency in accordance with 5 U.S.C. 552(d) of any record
that has been disclosed to the person or agency if an accounting of
the record was made. Since this provision is dependent on an
individual's having been provided an opportunity to contest (seek
amendment to) records pertaining to him, and since the above-listed
systems of records are proposed to be exempted from those provisions
of 5 U.S.C. 552a relating to amendments of records as indicated in
paragraph (c) above, the OTS believes that this provision should not
be applicable to the above-listed systems of records.
(f) 5 U.S.C. 552a(e)(4)(I) requires that an agency publish a
public notice listing the categories of sources for information
contained in a system of records. The OTS believes that application
of this provision to the above-listed systems of records could
compromise its ability to conduct investigations and to identify,
detect and apprehend violators of the applicable laws for the
reasons that revealing sources for information could (1) disclose
investigative techniques and procedures, (2) result in possible
reprisal directed to informers by the subject under investigation,
and (3) result in the refusal of informers to give information or to
be candid with investigators because of the knowledge that their
identities as sources might be disclosed.
(g) 5 U.S.C. 552a(e)(1) requires that an agency 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.'' At the time that information is collected by the
OTS, there is often insufficient time to determine whether the
information is relevant and necessary to accomplish a purpose of the
OTS; in many cases information collected may not be immediately
susceptible to a determination whether the information is relevant
and necessary, particularly in the early stages of an investigation,
and in many cases information which initially appears to be
irrelevant and unnecessary may, upon further evaluation or upon
continuation of the investigation, prove to have particular
relevance to an enforcement program of OTS. Further, not all
violations of law discovered during an OTS administrative
investigation fall within the investigative jurisdiction of OTS; in
order to promote effective law enforcement, OTS is often required to
disseminate information pertaining to such violations to other law
enforcement agencies which have jurisdiction over the offense to
which the information relates. The OTS should not be placed in a
position of having to ignore information relating to violations of
law not within its jurisdiction where that information comes to the
attention of the OTS through the conduct of a lawful OTS
investigation. The OTS therefore believes that it is appropriate to
exempt the above-listed systems of records from the provisions of 5
U.S.C. 552a(e)(1).
(h) 5 U.S.C. 552a(e)(2) requires that an agency collect
information to the greatest extent practicable directly from the
subject individual when the information may result in adverse
determinations about an individual's rights, benefits, and
privileges under Federal programs. The OTS believes that application
of this provision to the above-listed systems of records would
impair the ability of OTS to conduct investigations and to identify,
detect and apprehend violators of applicable laws for the following
reasons: (1) Most information collected about an individual under
investigation is obtained from third parties such as witnesses and
informers, and it is usually not feasible to rely upon the target of
the investigation as a source for information regarding his
activities, (2) an attempt to obtain information from an individual
regarding an investigation will often alert the individual to the
existence of such an investigation, thereby affording him an
opportunity to conceal his activities so as to avoid apprehension,
(3) in certain instances individuals are not required to supply
information to investigators as a matter of legal duty, and (4)
during investigations it is often a matter of sound investigative
procedures to obtain information from a variety of sources in order
to verify information already obtained.
(i) 5 U.S.C. 552a(e)(3) requires that an agency inform each
individual whom it asks to supply information, on the form which it
uses to collect the information or on a separate form that can be
retained by the individual, of the authority which authorizes the
solicitation of the information and whether disclosure of such
information is mandatory or voluntary; the principal purposes for
which the information is intended to be used; the routine uses which
may be made of the information; and the effects on the individual of
not providing all or part of the requested information. The OTS
believes that the above-listed systems of records should be exempted
from this provision in order to avoid adverse effects on its ability
to identify, detect and apprehend violators of applicable laws. In
many cases, information is obtained from confidential sources and
other individuals under circumstances where it is necessary that the
true purpose of their actions be kept secret so as to not let it be
known by the target of the investigation or his associates that an
investigation is in progress. In many cases, individuals for
personal reasons would feel inhibited in talking to a person
representing a law enforcement agency but would be willing to talk
to a confidential source or to an individual whom them believed was
not involved in enforcement activity. In addition, providing
information from this system, including written evidence of the
identity of the source, as required by this provision, could
increase the likelihood that the source of information would be the
subject of retaliatory action by the target of the investigation.
Further, application of this provision could result in an
unwarranted invasion of the personal privacy of the target of the
investigation, particularly where further investigation would result
in a finding that he was not involved in unlawful activity.
(j) 5 U.S.C. 552a(e)(5) requires that an agency maintain all
records used by the agency in making any determination about any
individual with such accuracy, relevance, timeliness, and
completeness as is reasonably necessary to assure fairness to the
individual in the determination. Since 5 U.S.C. 552a(a)(3) defines
``maintain'' to include ``collect'' and ``disseminate,'' application
of this provision to the above-listed systems of records would
hinder the initial collection of any information which could not, at
the moment of collection, be determined to be accurate, relevant,
timely and complete. Similarly, application of this provision would
seriously restrict the [[Page 15733]] necessary flow of information
from the OTS to other law enforcement agencies where an OTS
investigation revealed information pertaining to a violation of law
which was under the investigative jurisdiction of another agency. In
collecting information during the course of an administrative
investigation, it is not possible or feasible to determine accuracy,
relevance, timeliness or completeness prior to collection of the
information; in disseminating information to other law enforcement
agencies it is often not possible to determine accuracy, relevance,
timeliness or completeness prior to dissemination because the
disseminating agency may not have the expertise with which to make
such determinations. Further, information which may initially appear
inaccurate, irrelevant, untimely or incomplete may, when gathered,
grouped, and evaluated with other available information, become more
pertinent as an investigation progresses. The OTS therefore believes
that it is appropriate to exempt the above-listed systems of records
from the provisions of 5 U.S.C. 552a(e)(5).
(k) 5 U.S.C. 552a(e)(8) requires that an agency make reasonable
efforts to serve notice on an individual when any record on the
individual is made available to any person under compulsory legal
process when such process becomes a matter of public record. The OTS
believes that the above-listed systems of records should be exempt
from this provision in order to avoid revealing investigative
techniques and procedures outlined in those records and in order to
prevent revelation of the existence of an on-going investigation
where there is a need to keep the existence of the investigation
secret.
(1) 5 U.S.C. 552a(g) provides civil remedies to an individual
for an agency refusal to amend a record or to make a review of a
request for amendment, for an agency refusal to grant access to a
record, for an agency failure to maintain accurate, relevant, timely
and complete records which are used to make a determination which is
adverse to the individual, and for an agency failure to comply with
any other provision of 5 U.S.C. 552a in such a way as to have an
adverse effect on an individual. The OTS believes that the above-
listed systems of records should be exempted from this provision to
the extent that the civil remedies provided therein may be related
to provisions of 5 U.S.C. 552a from which the above-listed systems
of records are proposed to be exempt. Since the provisions of 5
U.S.C. 552a enumerated in paragraph (a) through (k) above proposed
to be inapplicable to the above-listed systems of records for the
reasons stated therein, there should be no corresponding civil
remedies for failure to comply with the requirements of those
provisions to which the exemption is proposed to apply. Further, the
OTS believes that the application of this provision to the above-
listed systems of records would adversely affect its ability to
conduct investigations by exposing to civil court actions every
stage of the investigative process in which information is compiled
or used in order to identify, detect, apprehend and otherwise
investigate persons suspected or known to be engaged in conduct in
violation of applicable laws.
b. Specific exemptions under 5 U.S.C. 552a(k)(2). Pursuant to
the provisions of 5 U.S.C. 552a(k)(2), the Office of Thrift
Supervision, hereby exempts certain systems of records, maintained
by the Office of Thrift Supervision, from the provisions of 5 U.S.C.
552a (c)(3), (d)(1), (2), (3) and (4), (e)(1) and (4)(G), (H), and
(I) and (f).
1. Exempt systems. The following systems of records, which
contain information of the type described in 5 U.S.C. 552a(k)(2),
shall be exempt from the provisions of 5 U.S.C. 552a listed in
paragraph b. above except as otherwise indicated below and in the
general notice of the existence and character of systems of records
which appears elsewhere in the Federal Register:
.001--Confidential Individual Information System
.004--Criminal Referral Database
2. Reasons for exemptions. (a) 5 U.S.C. 552a (e)(4)(G) and
(f)(1) enable individuals to be notified whether a system of records
contains records pertaining to them. The OTS believes that
application of these provisions (to those of the above-listed
systems of records for which no notification procedures have been
provided in the general notice of the existence and character of
systems of records which appears elsewhere in the Federal Register)
would impair the ability of the OTS to successfully complete
investigations and inquiries of suspected violators of laws and
regulations under its jurisdiction. In many cases investigations and
inquiries into violations of laws and regulations involve complex
and continuing patterns of behavior. Individuals, if informed that
they have been identified as suspected violators of laws and
regulations, would have an opportunity to take measures to prevent
detection of illegal action so as to avoid prosecution or the
imposition of civil sanctions. They would also be able to learn the
nature and location of the investigation and the type of inquiry
being made, and they would be able to transmit this knowledge to co-
conspirators. Finally, violators might be given the opportunity to
destroy evidence needed to prove the violation under investigation
or inquiry.
(b) 5 U.S.C. 552a (d)(1), (e)(4)(H) and (f)(2), (3) and (5)
enable individuals to gain access to records pertaining to them. The
OTS believes that application of these provisions to the above-
listed systems of records would impair its ability to complete or
continue investigations and inquiries and to detect and apprehend
violators of the applicable laws. Permitting access to records
contained in the above-listed systems of records would provide
violators with significant information concerning the nature of the
investigation or inquiry. Knowledge of the facts developed during an
investigation or inquiry would enable violators of laws and
regulations to learn the extent to which the investigation or
inquiry has progressed, and this could provide them with an
opportunity to destroy evidence that would form the basis for the
imposition of civil sanctions. In addition, knowledge gained through
access to investigatory material could alert a violator to the need
to temporarily postpone commission of the violation or to change the
intended point where the violation is to be committed so as to avoid
detection or apprehension. Further, access to investigatory material
would disclose investigative techniques and procedures which, if
known, could enable violators to structure their future operations
in such a way as to avoid detection or apprehension, thereby
neutralizing investigators' established and effective investigative
tools and procedures. In addition, investigatory material may
contain the identity of confidential sources who would not want
their identities to be disclosed for reasons of personal privacy or
for fear of reprisal at the hands of the individual about whom they
supplied information. In some cases mere disclosure of the
information provided by a source would reveal the identity of the
source either through the process of elimination or by virtue of the
nature of the information supplied. If sources could not be assured
that their identities (as sources for information) would remain
confidential, they would be very reluctant in the future to provide
information pertaining to violations of laws and regulations, and
this would seriously compromise the ability of the OTS to carry out
its mission. Further, application of 5 U.S.C. 552a (d)(1), (e)(4)(H)
and (f)(2), (3) and (5) to the above-listed systems of records would
make available attorney's work product and other documents which
contain evaluations, recommendations, and discussions of ongoing
legal proceedings; the availability of such documents could have a
chilling effect on the free flow of information and ideas within the
OTS which is vital to the agency's predecisional deliberative
process, could seriously prejudice the agency's or the Government's
position in litigation, and could result in the disclosure of
investigatory material which should not be disclosed for the reasons
stated above. It is the belief of the OTS that due process will
assure that individuals have a reasonable opportunity to learn of
the existence of, and to challenge, investigatory records and
related materials which are to be used in legal proceedings.
(c) 5 U.S.C. 552a(d) (2), (3) and (4), (e)(4)(H) and (f)(4),
which are dependent upon access having been granted to records
pursuant to the provisions cited in subparagraph (b) above, enable
individuals to contest (seek amendment to) the content of records
contained in a system of records and require an agency to note an
amended record and to provide a copy of an individual's statement
(of disagreement with the agency's refusal to amend a record) to
persons or other agencies to whom the record has been disclosed. The
OTS believes that the reasons set forth in subparagraph (b) above
are equally applicable to this subparagraph, and, accordingly, those
reasons are hereby incorporated herein by reference.
(d) 5 U.S.C. 552a(c)(3) requires that an agency make accountings
of disclosures of records available to individuals named in the
records at their request; such accountings must state the date,
nature and purpose of each disclosure of a record and the name and
address of the recipient. The OTS believes that application of this
provision to the [[Page 15734]] above-listed systems of records
would impair the ability of the OTS and other law enforcement
agencies to conduct investigations and inquiries into violations
under their respective jurisdictions. Making accountings available
to violators would alert those individuals to the fact that the OTS
or another law enforcement authority is conducting an investigation
or inquiry into their activities, and such accountings could reveal
the geographic location of the investigation or inquiry, the nature
and purpose of the investigation or inquiry and the nature of the
information disclosed, and dates on which that investigation or
inquiry was active. Violators possessing such knowledge would
thereby be able to take appropriate measures to avoid detection or
apprehension by altering their operations, transferring their
activities to other locations or destroying or concealing evidence
which would form the basis for prosecution or the imposition of
civil sanctions.
(e) 5 U.S.C. 552a(e)(1) requires that an agency 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.'' At the time that information is collected by the
OTS there is often insufficient time to determine whether the
information is relevant and necessary to accomplish a purpose of the
OTS; in many cases information collection may not be immediately
susceptible to a determination of whether the information is
relevant and necessary, particularly in the early stages of
investigation or inquiry; and in many cases information which
initially appears to be irrelevant and unnecessary may, upon further
evaluation or upon continuation of the investigation or inquiry,
prove to have particular relevance to an enforcement program of the
OTS. Further, not all violations of law uncovered during an OTS
investigation or inquiry fall within the jurisdiction of the OTS; in
order to promote effective law enforcement it often becomes
necessary and desirable to disseminate information pertaining to
such violations to other law enforcement agencies which have
jurisdiction over the offense to which the information relates. The
OTS should not be placed in a position of having to ignore
information relating to violations of law not within its
jurisdiction where that information comes to the attention of the
OTS through the conduct of a lawful OTS investigation or inquiry.
The OTS therefore believes that it is appropriate to exempt the
above-listed systems of records from provisions of 5 U.S.C.
552a(e)(1).
Dated: December 15, 1994.
Jonathan L. Fiechter,
Acting Director.
Dated: March 6, 1995.
Alex Rodriguez,
Deputy Assistant Secretary (Administration).
[FR Doc. 95-7342 Filed 3-24-95; 8:45 am]
BILLING CODE 6720-01-M
