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[Federal Register Volume 77, Number 137 (Tuesday, July 17, 2012)]
[Rules and Regulations]
[Pages 41885-41886]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17382]

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EXPORT-IMPORT BANK OF THE UNITED STATES

12 CFR Part 404

[EXIM-OIG-2012-0010]
RIN 3048-AA02

Privacy Act of 1974: Implementation of Exemptions; Export-Import 
Bank of the United States Office of Inspector General--EIB-35--Office 
of Inspector General Investigative Records

AGENCY: Office of the Inspector General, Export-Import Bank of the 
United States.

ACTION: Final rule.

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SUMMARY: The Export-Import Bank of the United States (hereafter known 
as ``Ex-Im Bank'') is issuing a final rule to exempt portions of a 
system of records entitled ``EIB-35--Office of Inspector General 
Investigative Records'' from one or more provisions of the Privacy Act 
because of criminal, civil, and administrative enforcement 
requirements.

DATES: The final rule is effective August 16, 2012.

FOR FURTHER INFORMATION CONTACT: Osvaldo Gratacos, Ex-Im Bank, Office 
of Inspector General, 811 Vermont Avenue NW., Rm. 976, Washington, DC 
20571 or by telephone (202) 565-3908 or facsimile (202) 565-3988.

SUPPLEMENTARY INFORMATION: 

Background

    The Ex-Im Bank published a notice of proposed rulemaking in the 
Federal Register, 77 FR 27140 (May 9, 2012), proposing to exempt 
portions of a system of records entitled ``EIB-35--Office of Inspector 
General Investigative Records'' and held by the Ex-Im Bank Office of 
Inspector General (OIG), from one or more provisions of the Privacy Act 
of 1974, 5 U.S.C. 552a. The exemptions are necessary in order for Ex-Im 
Bank OIG to carry out its investigative responsibilities pursuant to 
the Inspector General Act of 1978, as amended. The Ex-Im Bank OIG 
published the system of records notice in the Federal Register, 77 FR 
26755 (May 7, 2012), and comments were invited on both the Notice of 
Proposed Rulemaking (NPRM) and the System of Records Notice (SORN).

[[Page 41886]]

Public Comments

    Ex-Im Bank did not receive any comments on the SORN or the NPRM. 
Ex-Im Bank will implement the rulemaking as proposed.

List of Subjects in 12 CFR Part 404

    Information disclosure.

    For the reasons stated in the preamble, Ex-Im Bank amends chapter 
IV of Title 12, Code of Federal Regulations, as follows:

PART 404--INFORMATION DISCLOSURE

0
1. The authority citation for part 404 continues to read as follows:

    Authority:  5 U.S.C. 552 and 552a. Section 404.7 also issued 
under E.O. 12600, 52 FR 23781, 3 CFR, 1987 Comp., p. 235. Section 
404.21 also issued under 5 U.S.C. 552a note. Subpart C also issued 
under 5 U.S.C. 301, 12 U.S.C. 635.

0
2. Add Sec.  404.24 to Subpart B to read as follows:

Sec.  404.24  Exemptions: EIB-35--Office of Inspector General 
Investigative Records.

    (a) Criminal Law Enforcement--(1) Exemption. Under the authority 
granted by 5 U.S.C. 552a(j)(2), Ex-Im Bank hereby exempts the system of 
records entitled ``EIB-35--Office of Inspector General Investigative 
Records'' from the provisions of 5 U.S.C. 552a(c)(3), (c)(4), (d)(1) 
through (4), (e)(1) through (3), (e)(4)(G) and (H), (e)(5), (e)(8), 
(f), and (g) because the system contains information pertaining to the 
enforcement of criminal laws. ``EIB-35--Office of Inspector General 
Investigative Records'' is maintained by the Ex-Im Bank Office of 
Inspector General (``OIG'' or ``Ex-Im Bank OIG.'')
    (2) Reasons for exemption. The reasons for asserting this exemption 
are:
    (i) Disclosure to the individual named in the record pursuant to 5 
U.S.C. 552a(c)(3), (c)(4), or (d)(1) through (4) could seriously impede 
or compromise the investigation by alerting the target(s), subjecting a 
potential witness or witnesses to intimidation or improper influence, 
and leading to destruction of evidence. Disclosure could enable 
suspects to take action to prevent detection of criminal activities, 
conceal evidence, or escape prosecution.
    (ii) Application of 5 U.S.C. 552a(e)(1) is impractical because the 
relevance of specific information might be established only after 
considerable analysis and as the investigation progresses. Effective 
law enforcement requires the OIG to keep information that may not be 
relevant to a specific OIG investigation, but which may provide leads 
for appropriate law enforcement and to establish patterns of activity 
that might relate to the jurisdiction of the OIG and/or other agencies.
    (iii) Application of 5 U.S.C. 552a(e)(2) would be counterproductive 
to the performance of a criminal investigation because it would alert 
the individual to the existence of an investigation. In any 
investigation, it is necessary to obtain evidence from a variety of 
sources other than the subject of the investigation in order to verify 
the evidence necessary for successful litigation or prosecution.
    (iv) Application of 5 U.S.C. 552a(e)(3) could discourage the free 
flow of information in a criminal law enforcement inquiry.
    (v) The requirements of 5 U.S.C. 552a(e)(4)(G) and (H) and (f) 
would be counterproductive to the performance of a criminal 
investigation. To notify an individual at the individual's request of 
the existence of records in an investigative file pertaining to such 
individual, or to grant access to an investigative file could interfere 
with investigative and enforcement proceedings, deprive co-defendants 
of a right to a fair trial or other impartial adjudication, constitute 
an unwarranted invasion of personal privacy of others, disclose the 
identity or confidential sources, reveal confidential information 
supplied by these sources and disclose investigative techniques and 
procedures. Nevertheless, Ex-Im Bank OIG has published notice of its 
notification, access, and contest procedures because access may be 
appropriate in some cases.
    (vi) Although the OIG endeavors to maintain accurate records, 
application of 5 U.S.C. 552a(e)(5) is impractical because maintaining 
only those records that are accurate, relevant, timely, and complete 
and that assure fairness in determination is contrary to established 
investigative techniques. Information that may initially appear 
inaccurate, irrelevant, untimely, or incomplete may, when collated and 
analyzed with other available information, become more pertinent as an 
investigation progresses.
    (vii) Application of 5 U.S.C. 552a(e)(8) could prematurely reveal 
an ongoing criminal investigation to the subject of the investigation.
    (viii) The provisions of subsection (g) do not apply to this system 
if an exemption otherwise applies.
    (b) Other Law Enforcement--(1) Exemption. Under the authority 
granted by 5 U.S.C. 552a(k)(2), Ex-Im Bank hereby exempts the system of 
records entitled ``EIB-35--Office of Inspector General Investigative 
Records'' from the provisions of 5 U.S.C. 552a(c)(3), (d)(1) through 
(4), (e)(1), (e)(4)(G) and (H), and (f) for the same reasons as stated 
in paragraph (a)(2) of this section, that is, because the system 
contains investigatory material compiled for law enforcement purposes 
other than material within the scope of subsection 552a(j)(2).
    (2) Reasons for exemption. The reasons for asserting this exemption 
are because the disclosure and other requirements of the Privacy Act 
could substantially compromise the efficacy and integrity of OIG 
operations. Disclosure could invade the privacy of other individuals 
and disclose their identity when they were expressly promised 
confidentiality. Disclosure could interfere with the integrity of 
information which would otherwise be subject to privileges (see, e.g., 
5 U.S.C. 552(b)(5)), and which could interfere with other important law 
enforcement concerns (see, e.g., 5 U.S.C. 552(b)(7)).
    (c) Federal Civilian or Contract Employment--(1) Exemption. Under 
the authority granted by 5 U.S.C. 552a(k)(5), Ex-Im Bank hereby exempts 
the system of records entitled ``EIB-35--Office of Inspector General 
Investigative Records'' from the provisions of 5 U.S.C. 552a(c)(3), 
(d)(1) through (4), (e)(1), (e)(4)(G) and (H), and (f) because the 
system contains investigatory material compiled for the purpose of 
determining eligibility or qualifications for federal civilian or 
contract employment.
    (2) Reasons for exemption. The reasons for asserting this exemption 
are the same as described in paragraph (a)(2) of this section.

Sharon A. Whitt,
Agency Clearance Officer.
[FR Doc. 2012-17382 Filed 7-16-12; 8:45 am]
BILLING CODE 6690-01-P
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