§ 3412. — Use of information.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3412]
TITLE 12--BANKS AND BANKING
CHAPTER 35--RIGHT TO FINANCIAL PRIVACY
Sec. 3412. Use of information
(a) Transfer of financial records to other agencies or departments;
certification
Financial records originally obtained pursuant to this chapter shall
not be transferred to another agency or department unless the
transferring agency or department certifies in writing that there is
reason to believe that the records are relevant to a legitimate law
enforcement inquiry, or intelligence or counterintelligence activity,
investigation or analysis related to international terrorism within the
jurisdiction of the receiving agency or department.
(b) Mailing of copy of certification and notice to customer
When financial records subject to this chapter are transferred
pursuant to subsection (a) of this section, the transferring agency or
department shall, within fourteen days, send to the customer a copy of
the certification made pursuant to subsection (a) of this section and
the following notice, which shall state the nature of the law
enforcement inquiry with reasonable specificity: ``Copies of, or
information contained in, your financial records lawfully in possession
of have been furnished to pursuant to
the Right of Financial Privacy Act of 1978 [12 U.S.C. 3401 et seq.] for
the following purpose: . 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 [5 U.S.C. 552a].''
(c) Court-ordered delays in mailing
Notwithstanding subsection (b) of this section, notice to the
customer may be delayed if the transferring agency or department has
obtained a court order delaying notice pursuant to section 3409(a) and
(b) of this title and that order is still in effect, or if the receiving
agency or department obtains a court order authorizing a delay in notice
pursuant to section 3409(a) and (b) of this title. Upon the expiration
of any such period of delay, the transferring agency or department shall
serve to the customer the notice specified in subsection (b) of this
section and the agency or department that obtained the court order
authorizing a delay in notice pursuant to section 3409(a) and (b) of
this title shall serve to the customer the notice specified in section
3409(b) of this title.
(d) Exchanges of examination reports by supervisory agencies; transfer
of financial records to defend customer action; withholding of
information
Nothing in this chapter prohibits any supervisory agency from
exchanging examination reports or other information with another
supervisory agency. Nothing in this chapter prohibits the transfer of a
customer's financial records needed by counsel for a Government
authority to defend an action brought by the customer. Nothing in this
chapter shall authorize the withholding of information by any officer or
employee of a supervisory agency from a duly authorized committee or
subcommittee of the Congress.
(e) Exchange of records, reports, or other information
Notwithstanding section 3401(6) \1\ of this title or any other
provision of law, the exchange of financial records, examination reports
or other information with respect to a financial institution, holding
company, or any subsidiary of a depository institution or holding
company, among and between the five member supervisory agencies of the
Federal Financial Institutions Examination Council, the Securities and
Exchange Commission, and the Commodity Futures Trading Commission is
permitted.
---------------------------------------------------------------------------
\1\ See References in Text note below.
---------------------------------------------------------------------------
(f) Transfer to Attorney General or Secretary of the Treasury
(1) In general
Nothing in this chapter shall apply when financial records
obtained by an agency or department of the United States are
disclosed or transferred to the Attorney General or the Secretary of
the Treasury upon the certification by a supervisory level official
of the transferring agency or department that--
(A) there is reason to believe that the records may be
relevant to a violation of Federal criminal law; and
(B) the records were obtained in the exercise of the
agency's or department's supervisory or regulatory functions.
(2) Limitation on use
Records so transferred shall be used only for criminal
investigative or prosecutive purposes, for civil actions under
section 1833a of this title, or for forfeiture under sections \2\
981 or 982 of title 18 by the Department of Justice and only for
criminal investigative purposes relating to money laundering and
other financial crimes by the Department of the Treasury and shall,
upon completion of the investigation or prosecution (including any
appeal), be returned only to the transferring agency or department.
No agency or department so transferring such records shall be deemed
to have waived any privilege applicable to those records under law.
---------------------------------------------------------------------------
\2\ So in original. Probably should be ``section''.
---------------------------------------------------------------------------
(Pub. L. 95-630, title XI, Sec. 1112, Nov. 10, 1978, 92 Stat. 3705; Pub.
L. 97-320, title IV, Sec. 432(a), Oct. 15, 1982, 96 Stat. 1527; Pub. L.
100-690, title VI, Sec. 6186(b), Nov. 18, 1988, 102 Stat. 4357; Pub. L.
101-73, title IX, Sec. 944, Aug. 9, 1989, 103 Stat. 498; Pub. L. 102-
242, title IV, Sec. 411(1), Dec. 19, 1991, 105 Stat. 2375; Pub. L. 102-
550, title XV, Sec. 1516, title XVI, Sec. 1606(b), Oct. 28, 1992, 106
Stat. 4059, 4087; Pub. L. 106-102, title II, Sec. 231(b)(2), title VII,
Sec. 727(b)(2), Nov. 12, 1999, 113 Stat. 1407, 1475; Pub. L. 107-56,
title III, Sec. 358(f)(1), Oct. 26, 2001, 115 Stat. 327.)
References in Text
The Right of Financial Privacy Act of 1978, and the Financial
Privacy Act of 1978, referred to in subsec. (b), both probably mean
title XI of Pub. L. 95-630, Nov. 10, 1978, 92 Stat. 3697, known as the
Right to Financial Privacy Act of 1978, which is classified generally to
this chapter (Sec. 3401 et seq.). For complete classification of this
Act to the Code, see Short Title note set out under section 3401 of this
title and Tables.
The Privacy Act of 1974, referred to in subsec. (b), is Pub. L. 93-
579, Dec. 31, 1974, 88 Stat. 1896, which enacted section 552a of Title
5, Government Organization and Employees, and provisions set out as
notes under section 552a of Title 5.
Section 3401(6) of this title, referred to in subsec. (e), was
redesignated section 3401(7) of this title by Pub. L. 101-73, title IX,
Sec. 941(1), Aug. 9, 1989, 103 Stat. 496.
Amendments
2001--Subsec. (a). Pub. L. 107-56 inserted ``, or intelligence or
counterintelligence activity, investigation or analysis related to
international terrorism'' after ``legitimate law enforcement inquiry''.
1999--Subsec. (e). Pub. L. 106-102 inserted ``, examination
reports'' after ``financial records'' and substituted ``provision of
law,'' for ``provision of this chapter,'' and ``, the Securities and
Exchange Commission, and the Commodity Futures Trading Commission'' for
``and the Securities and Exchange Commission''.
1992--Subsec. (f)(1). Pub. L. 102-550, Sec. 1516(1), inserted ``or
the Secretary of the Treasury'' after ``the Attorney General''.
Subsec. (f)(2). Pub. L. 102-550, Sec. 1606(b), inserted a comma
before ``for civil actions'' and made technical amendment to reference
to sections 981 or 982 of title 18.
Pub. L. 102-550, Sec. 1516(2), inserted ``and only for criminal
investigative purposes relating to money laundering and other financial
crimes by the Department of the Treasury'' after ``the Department of
Justice''.
1991--Subsec. (f)(2). Pub. L. 102-242 inserted ``for civil actions
under section 1833a of this title, or for forfeiture under sections 981
or 982 of title 18'' after ``or prosecutive purposes'' and inserted at
end ``No agency or department so transferring such records shall be
deemed to have waived any privilege applicable to those records under
law.''
1989--Subsec. (e). Pub. L. 101-73, Sec. 944(1), which directed the
insertion of ``, holding company, or any subsidiary of a depository
institution or holding company,'' after ``with respect to a depository
institution'', was executed by making the insertion after ``with respect
to a financial institution'', as the probable intent of Congress.
Pub. L. 101-73, Sec. 944(2), substituted ``Council and the
Securities and Exchange Commission'' for ``Council''.
1988--Subsec. (f). Pub. L. 100-690 added subsec. (f).
1982--Subsec. (e). Pub. L. 97-320 added subsec. (e).
Effective and Termination Dates of 2001 Amendment
Amendments by title III of Pub. L. 107-56 to terminate effective on
and after the first day of fiscal year 2005 if Congress enacts a joint
resolution that such amendments no longer have the force of law, see
section 303 of Pub. L. 107-56, set out as a Four-Year Congressional
Review; Expedited Consideration note under section 5311 of Title 31,
Money and Finance.
Amendment by Pub. L. 107-56 applicable with respect to reports filed
or records maintained on, before, or after Oct. 26, 2001, see section
358(h) of Pub. L. 107-56, set out as a note under section 1829b of this
title.
Effective Date of 1992 Amendment
Amendment by section 1606(b) of Pub. L. 102-550 effective as if
included in the Federal Deposit Insurance Corporation Improvement Act of
1991, Pub. L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub.
L. 102-550, set out as a note under section 191 of this title.
Section Referred to in Other Sections
This section is referred to in sections 3409, 3413, 3420 of this
title; title 15 section 78u.
