[Federal Register Volume 86, Number 22 (Thursday, February 4, 2021)]
[Notices]
[Pages 8260-8262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02262]


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DEPARTMENT OF THE TREASURY


Privacy Act of 1974; System of Records

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Notice of a modified system of records notice.

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SUMMARY: In accordance with the Privacy Act of 1974, the Department of 
the Treasury (Treasury), Departmental Offices proposes to modify a 
system of records notice relating to the Treasury system of records 
titled, ``Department of the Treasury, Departmental Offices .227--
Committee on Foreign Investment in the United States (CFIUS) Case 
Management System.''

DATES: Written comments must be received by March 8, 2021. The 
modification will be applicable on March 8, 2021 unless Treasury 
receives comments and determines that changes to the system of records 
notice are necessary.

ADDRESSES: Written comments on this notice may be submitted 
electronically through the Federal government eRulemaking portal at 
http://www.regulations.gov. Electronic submission of comments allows 
the commenter maximum time to prepare and submit a comment, ensures 
timely receipt, and enables the Department of the Treasury (Treasury) 
to make the comments available to the public. Please note that comments 
submitted through https://www.regulations.gov will be public, and can 
be viewed by members of the public. Due to COVID-19-related 
restrictions, Treasury has temporarily suspended its ability to receive 
public comments by mail.
    In general, Treasury will post all comments to https://www.regulations.gov without change, including any business or personal 
information provided, such as names, addresses, email addresses, or 
telephone numbers. All comments received, including attachments and 
other supporting material, will be part of the public record and 
subject to public disclosure. You should only submit information that 
you wish to make publicly available.

FOR FURTHER INFORMATION CONTACT: For questions about this notice and 
privacy issues, contact: Ryan Law, Deputy Assistant Secretary for 
Privacy, Transparency, and Records at U.S. Department of the Treasury, 
1500 Pennsylvania Avenue NW, Washington, DC 20220; telephone: (202) 
622-5710.

SUPPLEMENTARY INFORMATION: In accordance with the Privacy Act of 1974, 
as amended (5 U.S.C. 552a), the Department of the Treasury (Treasury), 
Departmental Offices proposes to modify a system of records notice, 85 
FR 55354, relating to the Treasury system of records titled, 
``Department of the Treasury, Departmental Offices .227--Committee on 
Foreign Investment in the United States (CFIUS) Case Management 
System.'' Treasury is (1) adding the authorities 44 U.S.C. 3101, and 
E.O. 9397 and 13478, and (2) replacing the authorities ``85 FR 3112; 85 
FR 3158; 85 FR 8747; 85 FR 45311'' with ``31 CFR part 800 (2019); 31 
CFR parts 800-802 (2020), as amended'', to ensure that the public is 
aware of these additional authorities and to clarify the applicable 
regulatory authorities, even though the authorities are already 
publicly available in the United States Code, the Federal Register, and 
the Code of Federal Regulations.
    As background, in 2007, the Foreign Investment and National 
Security Act of 2007 (FINSA), Public Law 110-49, 121 Stat. 246, was 
enacted. FINSA amended section 721 of the Defense Production Act of 
1950, as amended (Section 721), which delineates the authorities and 
jurisdiction of CFIUS. FINSA codified aspects of the structure, role, 
process, and responsibilities of CFIUS and the role of executive branch 
departments, agencies, and offices in CFIUS's review of transactions 
for national security concerns, and required the issuance of 
regulations implementing its provisions. Treasury published regulations 
codified at part 800 of title 31 of the Code of Federal Regulations 
(CFR) pursuant to a final rule 73 FR 70702 (November 21, 2008), which 
implemented provisions of FINSA, and became effective as of December 
22, 2008.
    In 2018, the Foreign Investment Risk Review Modernization Act of 
2018 (FIRRMA), Subtitle A of Title XII of Public Law 115-232, 132 Stat. 
2173, was enacted, which further amended Section 721 by broadening the 
authorities of the President and CFIUS under Section 721 to review and 
take action to address any national security concerns arising from 
certain non-controlling investments and certain real estate 
transactions involving foreign persons. Following the enactment of 
FIRRMA, on October 11, 2018, Treasury published regulations in the form 
of an interim rule, which amended the CFIUS regulations codified at 
part 800 of title 31 of the CFR to implement, and make updates 
consistent with, certain provisions of FIRRMA that became immediately 
effective (October 2018 Interim Rule). See 83 FR 51316 (October 11, 
2018). The October 2018 Interim Rule took effect on November 10, 2018. 
Treasury published a second interim rule codified at part 801 of title 
31 of the CFR on October 11, 2018, pursuant to section 1727(c) of 
FIRRMA, setting forth the scope of, and procedures for, a pilot program 
to review certain transactions involving foreign persons and critical 
technologies (Pilot Program Interim Rule). See 83 FR 51322 (October 11, 
2018). The Pilot Program Interim Rule,

[[Page 8261]]

which took effect on November 10, 2018, implemented jurisdiction over, 
and established mandatory declarations for, certain transactions 
involving investments by foreign persons in certain U.S. businesses 
that produce, design, test, manufacture, fabricate, or develop one or 
more critical technologies.
    On January 17, 2020, Treasury published two additional rules to 
implement provisions of FIRRMA. See 85 FR 3112 (January 17, 2020); 85 
FR 3158 (January 17, 2020). The rule at 85 FR 3112 amended CFIUS 
regulations codified at part 800 of title 31 of the CFR. These 
provisions specifically relate to CFIUS's authorities and the process 
and procedures to review: (1) A merger, acquisition or takeover by or 
with a foreign person that could result in foreign control of a U.S. 
business; (2) a non-controlling ``other investment'' that affords a 
foreign person specified access to information in the possession of, 
rights in, or involvement in the substantive decisionmaking of certain 
U.S. businesses related to critical technologies, critical 
infrastructure, or sensitive personal data; (3) any change in a foreign 
person's rights if such change could result in foreign control of a 
U.S. business or an ``other investment'' in certain U.S. businesses; or 
(4) any other transaction, transfer, agreement, or arrangement, the 
structure of which is designed or intended to circumvent the 
application of Section 721. The rule at 85 FR 3158 adds a part 802 to 
chapter VIII of title 31 of the CFR to implement FIRRMA's expansion of 
CFIUS's jurisdiction over transactions involving the purchase or lease 
by, or concession to, a foreign person of certain real estate in the 
United States. The rules at 85 FR 3112 and 85 FR 3158 took effect on 
February 13, 2020. The rule at 85 FR 3112 further clarified that the 
CFIUS regulations codified at part 801 of title 31 of the CFR will, 
going forward, apply only to transactions for which specified actions 
were taken on or after the effective date of the Pilot Program Interim 
Rule and prior to February 13, 2020, and that, subject to the 
applicability of the CFIUS regulations codified at part 801 of title 31 
of the CFR, the CFIUS regulations codified at part 800 of title 31 of 
the CFR as in effect on February 12, 2020, which may be referred to as 
31 CFR part 800 (2019), will, going forward, apply only to transactions 
for which specified actions were taken before February 13, 2020. Except 
as described in the preceding sentence, the CFIUS regulations codified 
at part 800 of title 31 of the CFR as amended by the rule at 85 FR 
3112, which may be referred to as 31 CFR part 800 (2020), apply from 
February 13, 2020. Subsequent amendments (85 FR 8747, 85 FR 45311 and 
85 FR 57124) were made to the regulations codified at parts 800 and 802 
of title 31 of the CFR in 2020 to make certain technical corrections, 
make a clarifying revision to the definition of ``principal place of 
business,'' establish a fee for parties filing a formal written notice 
of a transaction for review by CFIUS, make amendments to the definition 
of ``substantial interest'' and a related provision, and modify the 
mandatory declaration provision for certain foreign investment 
transactions involving a U.S. business that produces, designs, tests, 
manufactures, fabricates, or develops one or more critical 
technologies. For clarity in light of the numerous Federal Register 
publications, and to incorporate all applicable regulations published 
in the Federal Register, the applicable regulatory authorities for this 
system of records will be described pursuant to this modification of 
the system of records notice as ``31 CFR part 800 (2019); 31 CFR parts 
800-802 (2020), as amended.''
    Pursuant to Section 721 and its implementing regulations, CFIUS 
assesses or reviews, and may subsequently investigate (in the case of a 
review), transactions that could result in foreign control of a U.S. 
business and certain non-controlling investments and certain real 
estate transaction involving foreign persons to determine the effects 
of such transactions on the national security of the United States. As 
part of CFIUS's national security processes, Treasury, as chair of 
CFIUS, disseminates information submitted by parties to the transaction 
and other available information to certain Executive Branch agencies. 
Among other things, CFIUS evaluates certain personal identifier 
information of individuals associated with the foreign person engaged 
in the transaction and certain parent entities (e.g., for purposes of 
conducting background checks), which informs CFIUS's determination of 
the effects of a transaction on the national security of the United 
States. At times, this may include personal identifier information of 
U.S. nationals if a U.S. national is a board member or officer of, has 
an ownership interest in, or has another relevant role related to, an 
entity engaged in a transaction before CFIUS or its parent entities. 
CFIUS may also receive certain personal identifier information of a 
U.S. national who is involved in a transaction as an individual if, for 
example, such individual is selling real estate in a transaction filed 
with CFIUS. In addition, CFIUS may collect personal identifier 
information for other purposes associated with its national security 
functions, including, for example, personal identifier information 
related to a security officer or other person who may be involved in 
mitigating a risk posed to national security. This system of records 
supports CFIUS's collection of transaction information for analysis in 
the performance of its assessments, reviews and investigations of 
transactions, and for other purposes associated with its national 
security functions.
    Further, pursuant to section 3101 of title 44 of the United States 
Code, ``[t]he head of each Federal agency must make and preserve 
records containing adequate and proper documentation of the 
organization, functions, policies, decisions, procedures and essential 
transactions of the agency and designed to furnish the information 
necessary to protect the legal and financial rights of the Government 
and of persons directly affected by the agency's activities.'' The 
system of records supports CFIUS in making and preserving records as 
required under 44 U.S.C. 3101, and, accordingly, this modification to 
the system of records notice adds 44 U.S.C. 3101 as an additional legal 
authority for the system of records.
    The system may include records from other systems of records both 
within Treasury and in records provided by certain other Executive 
Branch agencies for the purpose of facilitating CFIUS's assessment, 
review and investigation of transactions. Such records may include 
social security numbers, names, and other identifying data provided by 
the Social Security Administration and utilized by CFIUS pursuant to, 
inter alia, Executive Order 9397 (November 22, 1943), as amended by 
Executive Order 13478, 73 FR 70239 (November 18, 2008), and, therefore, 
this modification to the system of records notice adds these Executive 
Orders as additional legal authorities for the system of records.
    In maintaining its records, CFIUS is obligated to comply with its 
governing statute, and to the extent not inconsistent with that 
statute, generally applicable laws. Any records from another Treasury 
system of records or another Executive Branch agency's system of 
records for which an exemption is claimed under 5 U.S.C. 552a(j) or 
(k), which may also be included in this system of records, retains the 
same exempt status such records have in the system for which such 
exemption is claimed.

[[Page 8262]]

Additionally, pursuant to section 721(c) of the Defense Production Act 
of 1950, as amended, 50 U.S.C. 4565(c), and subject to certain 
exceptions provided therein, any information or documentary material 
filed with CFIUS under Section 721 is exempt from disclosure under the 
Freedom of Information Act, as amended (FOIA), 5 U.S.C. 552, and no 
such information or documentary material may be made public.
    The related information collections have been submitted to the 
Office of Management and Budget (OMB) under control number 1505-0121.
    Treasury has included this established system in its inventory of 
record systems. Below is the description of the Treasury, Departmental 
Offices .227--CFIUS Case Management System.
    Treasury provided a report of this system of records to the 
Committee on Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Security and Governmental 
Affairs of the U.S. Senate, and the OMB, pursuant to 5 U.S.C. 552a(r) 
and OMB Circular A-108, ``Federal Agency Responsibilities for Review, 
Reporting, and Publication under the Privacy Act,'' dated December 23, 
2016.

Ryan Law,
Deputy Assistant Secretary for Privacy, Transparency, and Records.

SYSTEM NAME AND NUMBER:
    Department of the Treasury, Departmental Offices .227--Committee on 
Foreign Investment in the United States (CFIUS) Case Management System.

SECURITY CLASSIFICATION:
    Classified.

SYSTEM LOCATION:
    Records are maintained at the Departmental Offices: 1500 
Pennsylvania Avenue NW, Washington, DC 20220.

SYSTEM MANAGER(S):
    Departmental Offices:
    a. Director of Business Operations, Office of International 
Affairs, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220.
    b. Chief Information Officer, U.S. Department of the Treasury, 1750 
Pennsylvania Avenue NW, Washington, DC 20220.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    50 U.S.C. 4565; 44 U.S.C. 3101; 31 U.S.C. 321; 5 U.S.C. 301; E.O. 
9397, 11858, 12333, 12968, 13478, and 13526, as amended; 31 CFR part 
800 (2019); 31 CFR parts 800-802 (2020), as amended.
* * * * *

HISTORY:
    85 FR 55354, September 4, 2020; 85 FR 58308, September 18, 2020.

[FR Doc. 2021-02262 Filed 2-3-21; 8:45 am]
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