Page images
PDF
EPUB

(b) A request for disclosure of the above specified basic identifying information concerning a customer's account shall not require any customer notice (§§ 275.9, 275.11, and 275.13), challenge ($275.9) or transfer (§275.13) procedures. However, this partial exception for basic identifying data shall not alter the mandatory access requirements set forth in §§ 275.8 and 275.9 to obtain the actual financial record itself.

(c) A format for requesting basic identifying account data is set forth in enclosure 1 of this part.

[45 FR 17576, Mar. 19, 1980. Redesignated and amended at 56 FR 57984, Nov. 15, 1991]

$275.8 Procedures for obtaining customer's consent.

(a) A DoD law enforcement office or personnel security element seeking access to a person's financial records shall, when feasible, obtain the customer's consent.

consent obtained

(b) Any §275.8(a) shall:

under

(1) Be in writing, signed, and dated. (2) Identify the particular financial records that are being disclosed.

(3) State that the customer may revoke the consent at any time before disclosure.

(4) Specify the purpose for disclosure and to which agency the records may be disclosed.

(5) Authorize the disclosure for a period not in excess of 3 months.

(6) Contain a Privacy Act advisory statement required by part 286a of this title for a personnel security investigation.

(7) Contain a "Statement of Customer Rights Under the Right to Financial Privacy Act of 1978" (enclosure 2).

(c) Any customer's consent not containing all of the elements listed in § 275.8(b), shall be void. A customer consent form, in a format set forth in enclosure 2, shall be used for this purpose.

(d) A copy of the customer's consent shall be made a part of the law enforcement inquiry or personnel security investigation file.

(e) A certification of compliance with 12 U.S.C. 3401 et seq., in writing (enclosure 4), along with the customer's con

32 CFR Ch. 1 (7-1-00 Edition)

sent, shall be provided to the financial
institution as a prerequisite to obtain-
ing access to financial records.

(f) The annual reporting require-
ments of §275.14 shall apply to any re-
quest for access under §275.8(a).

[45 FR 17576, Mar. 19, 1980. Redesignated and
amended at 56 FR 57984, Nov. 15, 1991)
$275.9 Other access procedures.

(a) Access by compulsory legal process-
(1) Administrative summons or subpoena.
(i) Within the Department of Defense,
the Inspector General, DoD, has the au-
thority under Pub. L. 95-452 (The In-
spector General Act of 1978, as amended
by Pub. L. 97-252) to issue administra-
tive subpoenas for access to financial
records. No other DoD Component offi-
cial may issue summonses or sub-
poenas for access to these records.

(ii) The Inspector General, DoD, shall issue administrative procedures for access to financial records in accordance with established procedures.

(2) Search warrant. (i) A law enforcement office may obtain financial records by using a search warrant obtained under Rule 41 of the Federal Rules of Criminal Procedure in appropriate cases.

(ii) Unless a delay of notice has been obtained under provisions of §275.12, the law enforcement office shall, no later than 90 days after serving the search warrant, mail to the customer's last known address a copy of the search warrant together with the following notice:

Records or information concerning your
transactions held by the financial institu-
tion named in the attached search warrant
were obtained by this [agency or depart-
ment] on [date] for the following purpose:
[state purpose]. you may have rights under
the Right to Financial Privacy Act of 1978.

(iii) In any state or territory of the
United States, or in the District of Co-
lumbia, Puerto Rico, Guam, American
Samoa, or the Virgin Islands, search
warrants signed by installation com-
manders or military judges shall not be
used to gain
records.

access

to financial

(3) Judicial subpoena. Judicial subpoenas are those issued in connection with a pending judicial proceeding and inlcude subpoenas issued under paragraph 115 of the Manual for Courts

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][subsumed][ocr errors][merged small][merged small][merged small][merged small]

Martial (1969 Revised) and Article 46 of the Uniform Code of Military Justice. Cognizant legal counsel shall be consulted on the availability and use of judicial subpoenas.

(b) Formal written request. (1) A law enforcement office may issue a formal written request for financial records when the records sought are relevant to a legitimate law enforcement inquiry. This request may be issued only if the customer has declined to consent, §275.8, to the disclosure of his or her records, or if it is determined that to seek consent from the customer would compromise or harmfully delay a legitimate law enforcement inquiry.

(2) A formal written request shall be in a format set forth in enclosure 3 and shall:

(i) State that the request is issued under the Right to Financial Privacy Act of 1978 and the Component's implementation of this part.

(ii) Describe the specific records to be examined.

(iii) State that access is sought in connection with a legitimate law enforcement inquiry.

(iv) Describe the nature of the inquiry.

(v) Be signed by the head of the law enforcement office or a designee.

(3) When a formal written request is issued to a financial institution, a copy of the request shall, at the same time or before, be personally served upon, or mailed to the customer's last known address unless a delay of customer notice has been obtained under §275.12. The notice to the customer shall be in a format similar to enclosure shall be personally served at least 14 days or mailed at least 18 days prior to the date on which access is sought.

(4) The official who signs the customer notice shall be designated to receive any challenge from the customer.

(5) The customer shall have 14 days to challenge a notice request when personal service is made and 18 days when service is by mail.

(6) Components shall establish procedures to ensure that no access to financial records is attempted before the expiration of the pertinent time period while awaiting receipt of a potential customer challenge, or prior to the ad

judication, prescribed by 12 U.S.C. 3410, of any challenge made.

(7) When a customer fails to file a challenge to access to financial records within the pertinent above time periods, or after a challenge is adjudicated in favor of the law enforcement office, the head of the office, or a designee, shall certify in writing to the financial institution that such office has complied with the requirements of 12 U.S.C. 3401 et seq. No access to any financial records shall be made before such certification is given.

(c) Certification. Prior to obtaining the requested records under § 275.9 (a)(2) and (a)(3), a certification of compliance with 12 U.S.C. 3401 et seq. and Enclosure 4 of this part, shall be provided to the financial institution as a prerequisite to obtaining access to financial records.

(d) Annual report. The annual reporting requirements of §275.14 shall apply to access procedures under paragraph (a) and (b) of this section.

[45 FR 17576, Mar. 19, 1980, as amended at 48 FR 20228, May 5, 1983. Redesignated and amended at 56 FR 57984, Nov. 15, 1991]

$275.10 Requests for financial records in connection with foreign intelligence and foreign counterintelligence activities.

(a) Except as specified in paragraph (b) of this section, nothing in this part shall apply to requests for financial records in connection with authorized foreign intelligence and foreign counterintelligence activities as defined in E.O. 12036, January 24, 1978.

(b) When a request for financial records is made under paragraph (a) of this section, a Component official designated by the Secretary of Defense, the Secretary of a Military Department, or the Head of the DoD Component authorized to conduct foreign intelligence and foreign counterintelligence activities shall certify to the financial institution that the requesting Component has complied with the provisions of 12 U.S.C. 3401 et seq. Such certification, in a format similar to enclosure 4 of this part, shall be made before obtaining any records.

(c) A Component requesting financial records under paragraph (a) of this section, may notify the financial institution from which records are sought that section 3414(3) of 12 U.S.C., prohibits disclosure to any person by the institution, its agents, or employees that financial records have been sought or obtained.

(d) The annual reporting requirements of $275.14 shall apply to any request for access under paragraph (a) of this section.

[45 FR 17576, Mar. 19, 1980. Redesignated and amended at 56 FR 57984, Nov. 15, 1991]

§ 275.11 Emergency access procedures.

(a) Except as provided in paragraph (b) and (c) of this section, nothing in this part shall apply to a request for financial records from a financial institution when the law enforcement office making such request determines that a delay in obtaining access records would create an imminent danto such ger of:

(1) Physical injury to any person. (2) Serious property damage. (3) Flight to avoid prosecution. (b) When access is made to financial records under paragraph (a) of this section, Component official designated by the Secretary of Defense or the Secretary of a Military Department shall:

(1) Certify in writing, in a format set forth in Enclosure 4 of this part, to the financial institution that the Component has complied with the provisions of 12 U.S.C. 3401 et seq., as requisite to obtaining access. a pre

(2) Submit for filing with the appropriate court a signed sworn statement setting forth the grounds for the emergency access within 5 days of obtaining access to financial records.

(c) After filing of the signed sworn statement required by paragraph (b)(2) of this section, the Component that has obtained access to financial records under paragraph (a) of this section, shall personally serve or mail to the customer a copy of the request to the financial institution and the following notice, unless a delay of notice has been obtained under § 275.12.

Records concerning your transactions held by the financial institution named in the attached request were obtained by [agency or department] under the Right to Financial

32 CFR Ch. 1 (7-1-00 Edition)

Privacy Act of 1978 on [date] for the fol-
lowing purpose: [state with reasonable speci-
ficity the nature of the law enforcement in-
quiry]. Emergency access to such records
was obtained on the grounds that [state
grounds].

Mailings under this paragraph shall
be by certified or registered mail to the
last known address of the customer.

(d) The annual reporting require-
ments of §275.14 shall apply to any ac-
cess pursuant to paragraph (a) of this
section.

[45 FR 17576, Mar. 19, 1980. Redesignated and
amended at 56 FR 57984, Nov. 15, 1991]

$275.12 Procedures for delay of notice.

(a) The customer notice required by
$275.9(b)(3), §275.11(c), or §275.13(c) may
be delayed for successive periods of 90
days. The notice required by paragraph
(a)(2)(ii) of this section may be delayed
for one period of 180 days and succes-
sive periods of 90 days. A delay of no-
tice may only be granted by a court of
competent jurisdiction and only when
not serving the notice would result in:
(1) Endangering the life or physical
safety of any person.

(2) Flight from prosecution.
(3) Destruction of or tampering with

evidence.

(4) Intimidation of potential wit

nesses.

(5) Otherwise seriously jeopardizing an investigation or official proceeding or unduly delaying a trial or ongoing official proceeding to the same degree as the circumstances in paragraphs (a)(1) through (4) of this section.

(b) When a delay of notice is appropriate, legal counsel shall be consulted to obtain such a delay. Application for delays of notice shall be made with reasonable specificity.

(c) Upon the expiration of a delay obtained under paragraph (a) of this section, of a notice required by:

(1) Section 275.9(a)(2)(ii), the law enforcement office obtaining such records shall mail to the customer a copy of the search warrant and the following

notice:

Records or information concerning your transactions held by the financial institution named in the attached search warrant

[merged small][merged small][merged small][ocr errors][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][ocr errors][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small]

were obtained by this [agency or department] on [date]. Notification was delayed beyond the statutory 90-day delay period pursuant to a determination by the court that such notice would seriously jeopardize an investigation concerning [state with reasonable specificity]. You may have rights under the Right to Financial Privacy Act of 1978.

(2) Section 275.9(b)(3), the law enforcement office obtaining such records shall serve personally or mail to the customer a copy of the process or request and the following notice:

Records of information concerning your transactions which are held by the financial institution named in the attached process or request were supplied to or requested by the Government authority named in the process or request on [date]. Notification was withheld pursuant to a determination by the [title of the court so ordering] under the Right to Financial Privacy Act of 1978 that such notice might [state reason]. The purpose of the investigation or official proceeding was [state purpose with reasonable specificity].

(3) Section 275.11(c), the law enforcement office obtaining financial records shall serve personally or mail to the customer a copy of the request and the notice required by §275.11(c).

(4) Section 275.13(c), the law enforcement office or personnel security element transferring such records shall serve personally or mail to the customer the notice required by §275.13(c).

(d) The annual reporting requirements of $275.14 shall apply to any request for access under the delay of notice.

[45 FR 17576, Mar. 19, 1980. Redesignated and amended at 56 FR 57984, Nov. 15, 1991]

$275.13 Procedures for releasing infor mation obtained from financial institutions.

(a) Financial records obtained under 12 U.S.C. 3401 et seq., shall be marked:

This record was obtained pursuant to the Right to Financial Privacy Act of 1978, 12 U.S.C. 3401 et seq., and may not be transferred to another federal agency or department without prior compliance with the transferring requirements of 12 U.S.C. 3412.

(b) Financial records obtained under the provisions of 12 U.S.C. 3401 et seq., shall not be transferred to another agency or department outside the Department of Defense unless the head of the transferring law enforcement of

fice, personnel security element, or delegate certifies in writing that there is reason to believe that the records are relevant to a legitimate law enforcement inquiry within the jurisdiction of the receiving agency or department. Such certificates shall be maintained with the DoD Component copy of the released records.

(c) Unless a delay of customer notice has been obtained under §275.12, when financial information is transferred under paragraph (b) of this section the law enforcement office or personnel security element shall within 14 days, personally serve or mail to the customer, at his or her last known address, a copy of the certificate required by paragraph (b) of this section, and the following notice:

Copies of or information contained in your financial records lawfully in possession of (name of Component) have been furnished to (name of agency) pursuant to the Right to Financial Privacy Act of 1978 for the following purposes: [state the nature of the law enforcement inquiry with reasonable specificity]. If you believe that this transfer has not been made to further a legitimate law enforcement inquiry, you may have legal rights under the Financial Privacy Act of 1978 or the Privacy Act of 1974.

(d) If a request for release of information is from a federal agency authorized to conduct foreign intelligence or foreign counterintelligence activities, as defined in E.O. 12036 for purposes of conducting such activities, the transferring DoD Component shall release the information without notifying the customer, unless permission to provide notification is given in writing by the requesting agency.

(e) Whenever financial data obtained under this part is incorporated into a report of investigation or other correspondence, precautions must be taken to ensure that:

(1) The reports or correspondence are not distributed outside the Department of Defense except in compliance with paragraphs (b) and (c) of this section; and

(2) The report or correspondence contains an appropriate warning restriction on the first page or cover.

(f) A suggested restrictive legend for use on the first page or cover sheet of reports or other correspondence follows:

Some of the information contained herein (cite specific paragraph) is financial record information which was obtained pursuant to the Right to Privacy Act of 1978, 12 U.S.C. 3401 et seq. This information may not be released to another federal agency or department outside the Department of Defense without compliance with the specific requirements of 12 U.S.C. 3412.

[45 FR 17576, Mar. 19, 1980, as amended at 46 FR 29706, June 3, 1981. Redesignated and amended at 56 FR 57984, Nov. 15, 1991]

$275.14 Right to Financial Privacy Act of 1978 Annual Report.

(a) Each affected DoD Component shall compile an annual report setting forth the following for the preceding calendar year:

(1) The number of requests for access to financial institutions specifying the types of access and any other information deemed relevant or useful.

(2) The number of customer challenges to access and whether they were successful.

(3) The number of transfers to agencies outside of the Department of Defense of information obtained under this part.

(4) The number of customers challenges to the transfer of information and whether they were successful.

(5) The number of applications for delay of notice, the number granted, and the names of the officials requesting such delays.

(6) The number of delay of notice extensions sought and the number granted.

(7) The number of refusals by financial institutions to grant access by category of authorization, such as, customer consent or formal written request.

(b) This report shall be submitted to the Defense Privacy Board, Office of the Deputy Assistant Secretary of Defense (Administration), by February 15 annually.

ENCLOSURE 1-REQUEST FOR BASIC IDENTIFYING ACCOUNT DATA FORMAT [Official Letterhead]

Mr./Mrs.
Chief Teller (as appropriate), First National
Bank, Little Rock, AR 72203
Dear Mr./Mrs.
with a legitimate law enforcement inquiry
In connection
and pursuant to section 3413(g) of the Right

to Financial Privacy Act of 1978, 12 U.S.C.
3401 et seq., you are requested to provide the
following account information: [Name, ad-
dress, account number, and type of account
of any customer or ascertainable group of
customers associated with a certain class of
financial transactions as set forth in §275.7.]

I hereby certify, pursuant to section 3403(b)
of the Right of Financial Privacy Act of 1978,
that the provisions of the Act have been
complied with as to this request for account
information.

[Official Signature Block]

Under section 3417(c) of the Act, good faith
reliance upon this certification relieves your
institution and its employees and agents of
any possible liability to the subject in con-
nection with the disclosure of the requested
financial records.

[46 FR 29706, June 3, 1981. Redesignated and
amended at 56 FR 57984, Nov. 15, 1991]

ENCLOSURE 2-CUSTOMER CONSENT AND
AUTHORIZATION FOR ACCESS FORMAT

Pursuant to section 3404(a) of the Right to
Financial Privacy Act of 1978, I, [Name of
customer], having read the explanation of
my rights on the reverse side, hereby author-
ize the [Name and address of financial insti-
tution] to disclose these financial records:
[List the particular financial records] to
[DoD Component] for the following pur-
pose(s): [Specify the purpose(s)).

I understand that this authorization may
be revoked by me in writing at any time be-
fore my records, as described above, are dis-
closed, and that this authorization is valid
for no more than three months from the date
of my signature.
Date:
Signature:
[Typed name]

[Mailing address of customer]

Statement of Customer Rights Under the Right

to Financial Privacy Act of 1978 Federal law protects the privacy of your financial records. Before banks, savings and loan associations, credit unions, credit card issuers, or other financial institutions may give financial information about you to a federal agency, certain procedures must be followed.

Consent to Financial Records

You may be asked to consent to the financial institution making your financial records available to the Government. You may withhold your consent, and your consent is not required as a condition of doing business with any financial institution. If you give your consent, it can be revoked in writing at any time before your records are disclosed.

[ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small]
« PreviousContinue »