[Federal Register Volume 89, Number 182 (Thursday, September 19, 2024)]
[Notices]
[Pages 76917-76919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21280]


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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 new system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended 
(Privacy Act), the Department of the Treasury (Treasury), Departmental 
Offices proposes to establish a new Treasury system of records entitled 
``Department of the Treasury, Departmental Offices .413--Outbound 
Investment Security Program Notification System'' for information 
collected in connection with the implementation of the Executive order, 
``Addressing United States Investments in Certain National Security 
Technologies and Products in Countries of Concern.'' This action is 
necessary to meet the requirements of the Privacy Act to publish in the 
Federal Register notice of the existence and character of the system of 
records maintained by Treasury.

DATES: Written comments must be received by October 21, 2024. The new 
routine uses will be applicable on October 21, 2024 unless Treasury 
receives comments and determines that changes to the system of records 
notice are necessary.

ADDRESSES: Comments may be submitted by any of the following methods:
    <bullet> Federal E-rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments. Electronic submission 
of comments allows the commenter maximum time to prepare and submit a 
comment and ensures timely receipt.
    <bullet> Mail: U.S. Department of the Treasury, Attention: Meena R. 
Sharma, Director, Office of Investment Security Policy and 
International Relations, 1500 Pennsylvania Avenue NW, Washington, DC 
20220.
    Treasury encourages comments to be submitted via https://www.regulations.gov. All comments submitted, including attachments and 
other supporting material, will be made public, including any 
personally identifiable or confidential business information that is 
included in a comment. Therefore, commenters should submit only 
information that they wish to make publicly available. Commenters who 
wish to remain anonymous should not include identifying information in 
their comments.

FOR FURTHER INFORMATION CONTACT: For general questions and questions 
regarding privacy issues, please contact: Ryan Law, Deputy Assistant 
Secretary for Privacy, Transparency, and Records, 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, 
5 U.S.C. 552a, as amended (the Privacy Act), the Department of the 
Treasury (Treasury), Departmental Offices proposes to establish a new 
system of records entitled ``Department of the Treasury, Departmental 
Offices .413--Outbound Investment Security Program Notification 
System'' for information collected in connection with the 
implementation of Executive Order 14105 of August 9, 2023, 88 FR 54867 
(the Outbound Order).
    As background, on August 9, 2023, the President issued the Outbound 
Order, which declares a national emergency to address the threat to the 
United States posed by countries of concern, which seek to develop and 
exploit sensitive technologies or products critical for military, 
intelligence, surveillance, or cyber-enabled capabilities. Among other 
things, the Outbound Order directs the Secretary of the Treasury to 
issue regulations that require U.S. persons to provide notification of 
information to Treasury regarding certain transactions involving a 
person of a country of concern that is engaged in certain activities 
involving covered national security technologies and products that may 
contribute to the threat to the national security of the United States 
as identified under the Outbound Order. The Outbound Order also directs 
the Secretary of the Treasury to issue regulations that prohibit 
certain transactions by a U.S. person involving a person of a country 
of concern that is engaged in certain activities involving covered 
national security technologies and products that pose a particularly 
acute national security threat to the United States. The Outbound Order 
authorizes the Secretary of the Treasury to exempt from applicable 
notification or prohibition requirements any transaction or 
transactions determined to be in the national interest of the United 
States. On August 9, 2023, Treasury issued an Advance Notice of 
Proposed Rulemaking, 88 FR 54961 (published August 14, 2023), to 
explain initial considerations and seek public comment on 
implementation of the Outbound Order.
    On June 21, 2024, Treasury issued a Notice of Proposed Rulemaking 
(NPRM) to seek public comment on the proposed rule, 89 FR 55846 
(published July 5, 2024). As described in the NPRM, Treasury intends to 
require U.S. persons to provide notification of certain transactions 
under its implementing regulations. This information would include 
relevant details on the U.S. person(s) involved in the transaction as 
well as information on the transaction and the foreign person(s) 
involved. These notifications would increase the U.S. Government's 
visibility into transactions by U.S. persons or their controlled 
foreign entities and involving technologies and products relevant to 
the threat to the national security of the United States due to the 
policies and actions of countries of concern. These notifications would 
also be helpful in highlighting aggregate sector trends and related 
capital flows as well as informing future policy development. Treasury 
also intends to require any U.S. person seeking a national interest 
exemption for a particular transaction to submit information to 
Treasury regarding the scope of that transaction including, as 
applicable, the information that would be required for a notification 
under the implementing regulations (such transactions, together with 
transactions that would be required to be notified to Treasury, are

[[Page 76918]]

referred to herein as ``transactions notified to Treasury'').
    The new system of records will support Treasury's collection of 
information in the performance of its analysis of these transactions, 
and for other purposes associated with its national security functions. 
The system may include records from other systems of records both 
within Treasury and in records provided by certain other Executive 
Branch agencies. 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) that may also be 
included in this system of records retain the same exempt status as 
such records have in the system for which such exemption is claimed. 
Treasury will consult with the Department of Commerce and, as 
appropriate, certain other Executive Branch agencies on analysis of 
transactions consistent with the Outbound Order. Records will be 
protected according to applicable rules and policies with system access 
being limited to individuals who need to know the information for the 
performance of their official duties.
    The related information collections have been submitted to the 
Office of Management and Budget on July 8, 2024 under control number: 
202407-1505-002.
    Additionally, Treasury's Departmental Offices is issuing a separate 
Notice of Proposed Rulemaking to exempt this system of records from 
certain provisions of the Privacy Act.
    This established system will be included in Treasury's inventory of 
record systems. Below is the description of the ``Department of the 
Treasury, Departmental Offices .413--Outbound Investment Security 
Program Notification System.''
    In accordance with 5 U.S.C. 552a(r), Treasury has provided a report 
of this new system to OMB and to the U.S. Congress.

    Dated: September 12, 2024.
Ryan Law,
Deputy Assistant Secretary for Privacy, Transparency, and Records.

SYSTEM NAME AND NUMBER:
    Department of the Treasury, Departmental Offices .413--Outbound 
Investment Security Program Notification System.

SECURITY CLASSIFICATION:
    Classified.

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

SYSTEM MANAGER(S):
    a. Director, Office of Investment Security Policy and International 
Relations, U.S. Department of the Treasury, 1500 Pennsylvania Avenue 
NW, Washington, DC 20220.
    b. Director, Office of Global Transactions Review, U.S. Department 
of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220.
    c. Chief Information Officer, U.S. Department of the Treasury, 1750 
Pennsylvania Avenue NW, Washington, DC 20220.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    31 U.S.C. 321; 5 U.S.C. 301; 44 U.S.C. 1301; E.O. 9397, 12333, 
12968, 13478, 13526, 14105

PURPOSE(S) OF THE SYSTEM:
    The purpose of this system is to collect information submitted by 
the relevant party regarding certain transactions notified to Treasury, 
and other available information related to such transactions, and 
disseminate such information to the Department of Commerce and, as 
appropriate, certain other Executive Branch agencies, in connection 
with the analysis of such transactions consistent with the Outbound 
Order.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The system covers individual U.S. persons that are party to or 
otherwise involved in a transaction notified to Treasury and whose 
information is provided to Treasury through the notifications or 
through other means. The term ``U.S. person'' is defined in the NPRM, 
and consistent with the Outbound Order, to mean ``any United States 
citizen, lawful permanent resident, entity organized under the laws of 
the United States or any jurisdiction within the United States, 
including any foreign branch of any such entity, or any person in the 
United States.''

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records consist of information submitted to Treasury regarding 
certain transactions notified to Treasury and other available 
information related to such transactions. Records include, but may not 
be limited to, the following information, which is being collected 
either pursuant to the Outbound Order and implementing regulations or 
as needed to administer the Outbound Investment Security Program 
Notification System.
    (1) Full name (last, middle, first)
    (2) Position/job title
    (3) Email address (personal/business)
    (4) Mailing address (personal/business)
    (5) Phone number (personal/business); and
    (6) Employer (name and business location)

RECORD SOURCE CATEGORIES:
    The information contained in the records in the Outbound Investment 
Security Program Notification System may be provided by the individual 
who is the subject of the record, their representative, the 
representative of an entity filing a notification to Treasury, or 
through other means.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    Only to the extent consistent with the Outbound Order and the 
implementing regulations, and in addition to those disclosures 
generally permitted under the Privacy Act of 1974, 5 U.S.C. 552a(b), 
records and/or information or portions thereof maintained as part of 
this system may be disclosed outside Treasury as a routine use pursuant 
to 5 U.S.C. 552a(b)(3) as follows:
    (1) To appropriate agencies, entities, and persons, including the 
United States Department of Justice (DOJ), when such records and/or 
information or portions thereof are relevant to any judicial or 
administrative action or proceeding;
    (2) To any domestic governmental entity, or to any foreign 
governmental entity of a United States partner or ally, where the 
information or documentary materials are important to the national 
security analysis or actions of such governmental entity or Treasury, 
subject to appropriate confidentiality and classification requirements;
    (3) To Congress or to any duly authorized committee or subcommittee 
of Congress;
    (4) To the National Archives and Records Administration or General 
Services Administration pursuant to records management inspections 
being conducted under the authority of 44 U.S.C. 2904 and 2906;
    (5) To appropriate agencies, entities, and persons when (1) 
Treasury suspects or has confirmed that there has been a breach of the 
system of records; (2) Treasury has determined that as a result of the 
suspected or confirmed breach there is a risk of harm to individuals, 
Treasury (including its information systems, programs, and operations), 
the Federal Government, or national security; and (3) the disclosure 
made to such agencies, entities, and persons is

[[Page 76919]]

reasonably necessary to assist in connection with Treasury's efforts to 
respond to the suspected or confirmed breach or to prevent, minimize, 
or remedy such harm;
    (6) To another Federal agency or Federal entity, when Treasury 
determines that information from this system of records is reasonably 
necessary to assist the recipient agency or entity in (1) responding to 
a suspected or confirmed breach or (2) preventing, minimizing, or 
remedying the risk of harm to individuals, the recipient agency or 
entity (including its information systems, programs, and operations), 
the Federal Government, or national security, resulting from a 
suspected or confirmed breach;
    (7) To the Department of Commerce and, as appropriate, certain 
other Executive Branch agencies, consistent with the Outbound Order and 
the implementing regulations; and,
    (8) To parties to transactions when Treasury requires additional 
information or clarification on issues related to individuals involved 
in the transaction.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Records in this system are stored in security controlled physical 
locations, using information technology that follows federal 
information security standards and directives.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records in this system may be retrieved, for authorized purposes, 
by name or another unique identifier.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records in this system are maintained in a secure IT system 
following federal information security standards and directives and in 
security controlled physical locations according to the General Records 
Schedule 5.2, item 020, Intermediary Records. Records will be disposed 
of in accordance with the requirements of the Federal Records Act and 
applicable record retention schedules.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Records in this system are safeguarded in accordance with 
applicable rules and policies, including all applicable Treasury 
information systems security and access policies. Strict controls are 
imposed to minimize the risk of compromising the information that is 
being stored. Access to the records in this system is limited to those 
individuals who have appropriate permissions and a need to know for the 
performance of their official duties. User activity is recorded by the 
system for audit purposes. Electronic records are encrypted at rest and 
in transit. Records are maintained in buildings subject to 24-hour 
security.

RECORD ACCESS PROCEDURES:
    See ``Notification Procedures'' below.

CONTESTING RECORD PROCEDURES:
    See ``Notification Procedures'' below.

NOTIFICATION PROCEDURES:
    The Secretary of the Treasury has exempted this system from the 
notification, access, and amendment procedures of the Privacy Act 
because it contains classified information and investigatory material 
compiled for law enforcement purposes, other than material within the 
scope of subsection (j)(2) of the Privacy Act. Subject to the 
foregoing, Treasury will consider individual requests to determine 
whether or not information may be released. Thus, individuals seeking 
notification of and access to any record contained in this system of 
records, or seeking to contest its content, may inquire in writing in 
accordance with instructions appearing at 31 CFR part 1, subpart C, 
Appendix A. Requests for information and specific guidance on where to 
send requests for records may be addressed to Director, FOIA Services, 
Department of the Treasury, 1750 Pennsylvania Avenue NW, Washington, DC 
20220.
    When seeking records about yourself from this system of records or 
any other Treasury system of records your request must conform with the 
Privacy Act regulations set forth in 31 CFR 1.26. While no specific 
form is required, you may obtain forms for this purpose from the 
Director, FOIA Services, Department of the Treasury, 1750 Pennsylvania 
Avenue NW, Washington, DC 20220.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    Certain records in this system are exempt from 5 U.S.C. 552a(c)(3), 
(d)(1), (2), (3), and (4), (e)(1), (e)(4)(G), (H), and (I), and (f) of 
the Privacy Act pursuant to 5 U.S.C. 552a(k)(1) and (k)(2).

HISTORY:
    None.

[FR Doc. 2024-21280 Filed 9-18-24; 8:45 am]
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