§ 3413. — Exceptions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3413]
TITLE 12--BANKS AND BANKING
CHAPTER 35--RIGHT TO FINANCIAL PRIVACY
Sec. 3413. Exceptions
(a) Disclosure of financial records not identified with particular
customers
Nothing in this chapter prohibits the disclosure of any financial
records or information which is not identified with or identifiable as
being derived from the financial records of a particular customer.
(b) Disclosure to, or examination by, supervisory agency pursuant to
exercise of supervisory, regulatory, or monetary functions with
respect to financial institutions, holding companies,
subsidiaries, institution-affiliated parties, or other persons
This chapter shall not apply to the examination by or disclosure to
any supervisory agency of financial records or information in the
exercise of its supervisory, regulatory, or monetary functions,
including conservatorship or receivership functions, with respect to any
financial institution, holding company, subsidiary of a financial
institution or holding company, institution-affiliated party (within the
meaning of section 1813(u) of this title) with respect to a financial
institution, holding company, or subsidiary, or other person
participating in the conduct of the affairs thereof.
(c) Disclosure pursuant to title 26
Nothing in this chapter prohibits the disclosure of financial
records in accordance with procedures authorized by title 26.
(d) Disclosure pursuant to Federal statute or rule promulgated
thereunder
Nothing in this chapter shall authorize the withholding of financial
records or information required to be reported in accordance with any
Federal statute or rule promulgated thereunder.
(e) Disclosure pursuant to Federal Rules of Criminal Procedure or
comparable rules of other courts
Nothing in this chapter shall apply when financial records are
sought by a Government authority under the Federal Rules of Civil or
Criminal Procedure or comparable rules of other courts in connection
with litigation to which the Government authority and the customer are
parties.
(f) Disclosure pursuant to administrative subpena issued by
administrative law judge
Nothing in this chapter shall apply when financial records are
sought by a Government authority pursuant to an administrative subpena
issued by an administrative law judge in an adjudicatory proceeding
subject to section 554 of title 5 and to which the Government authority
and the customer are parties.
(g) Disclosure pursuant to legitimate law enforcement inquiry respecting
name, address, account number, and type of account of particular
customers
The notice requirements of this chapter and sections 3410 and 3412
of this title shall not apply when a Government authority by a means
described in section 3402 of this title and for a legitimate law
enforcement inquiry is seeking only the name, address, account number,
and type of account of any customer or ascertainable group of customers
associated (1) with a financial transaction or class of financial
transactions, or (2) with a foreign country or subdivision thereof in
the case of a Government authority exercising financial controls over
foreign accounts in the United States under section 5(b) of the Trading
with the Enemy Act [12 U.S.C. 95a, 50 App. U.S.C. 5(b)]; the
International Emergency Economic Powers Act (title II, Public Law 95-
223) [50 U.S.C. 1701 et seq.]; or section 287c of title 22.
(h) Disclosure pursuant to lawful proceeding, investigation, etc.,
directed at financial institution or legal entity or
consideration or administration respecting Government loans,
loan guarantees, etc.
(1) Nothing in this chapter (except sections 3403, 3417 and 3418 of
this title) shall apply when financial records are sought by a
Government authority--
(A) in connection with a lawful proceeding, investigation,
examination, or inspection directed at a financial institution
(whether or not such proceeding, investigation, examination, or
inspection is also directed at a customer) or at a legal entity
which is not a customer; or
(B) in connection with the authority's consideration or
administration of assistance to the customer in the form of a
Government loan, loan guaranty, or loan insurance program.
(2) When financial records are sought pursuant to this subsection,
the Government authority shall submit to the financial institution the
certificate required by section 3403(b) of this title. For access
pursuant to paragraph (1)(B), no further certification shall be required
for subsequent access by the certifying Government authority during the
term of the loan, loan guaranty, or loan insurance agreement.
(3) After the effective date of this chapter, whenever a customer
applies for participation in a Government loan, loan guaranty, or loan
insurance program, the Government authority administering such program
shall give the customer written notice of the authority's access rights
under this subsection. No further notification shall be required for
subsequent access by that authority during the term of the loan, loan
guaranty, or loan insurance agreement.
(4) Financial records obtained pursuant to this subsection may be
used only for the purpose for which they were originally obtained, and
may be transferred to another agency or department only when the
transfer is to facilitate a lawful proceeding, investigation,
examination, or inspection directed at a financial institution (whether
or not such proceeding, investigation, examination, or inspection is
also directed at a customer), or at a legal entity which is not a
customer, except that--
(A) nothing in this paragraph prohibits the use or transfer of a
customer's financial records needed by counsel representing a
Government authority in a civil action arising from a Government
loan, loan guaranty, or loan insurance agreement; and
(B) nothing in this paragraph prohibits a Government authority
providing assistance to a customer in the form of a loan, loan
guaranty, or loan insurance agreement from using or transferring
financial records necessary to process, service or foreclose a loan,
or to collect on an indebtedness to the Government resulting from a
customer's default.
(5) Notification that financial records obtained pursuant to this
subsection may relate to a potential civil, criminal, or regulatory
violation by a customer may be given to an agency or department with
jurisdiction over that violation, and such agency or department may then
seek access to the records pursuant to the provisions of this chapter.
(6) Each financial institution shall keep a notation of each
disclosure made pursuant to paragraph (1)(B) of this subsection,
including the date of such disclosure and the Government authority to
which it was made. The customer shall be entitled to inspect this
information.
(i) Disclosure pursuant to issuance of subpena or court order respecting
grand jury proceeding
Nothing in this chapter (except sections 3415 and 3420 of this
title) shall apply to any subpena or court order issued in connection
with proceedings before a grand jury, except that a court shall have
authority to order a financial institution, on which a grand jury
subpoena for customer records has been served, not to notify the
customer of the existence of the subpoena or information that has been
furnished to the grand jury, under the circumstances and for the period
specified and pursuant to the procedures established in section 3409 of
this title.
(j) Disclosure pursuant to proceeding, investigation, etc., instituted
by General Accounting Office and directed at a government
authority
This chapter shall not apply when financial records are sought by
the General Accounting Office pursuant to an authorized proceeding,
investigation, examination or audit directed at a government authority.
(k) Disclosure necessary for proper administration of programs of
withholding taxes on nonresident aliens, Federal Old-Age,
Survivors, and Disability Insurance Benefits, and Railroad
Retirement Act Benefits
(1) Nothing in this chapter shall apply to the disclosure by the
financial institution of the name and address of any customer to the
Department of the Treasury, the Social Security Administration, or the
Railroad Retirement Board, where the disclosure of such information is
necessary to, and such information is used solely for the purpose of,
the proper administration of section 1441 of title 26, title II of the
Social Security Act [42 U.S.C. 401 et seq.], or the Railroad Retirement
Act of 1974 [45 U.S.C. 231 et seq.].
(2) Notwithstanding any other provision of law, any request
authorized by paragraph (1) (and the information contained therein) may
be used by the financial institution or its agents solely for the
purpose of providing the customer's name and address to the Department
of the Treasury, the Social Security Administration, or the Railroad
Retirement Board and shall be barred from redisclosure by the financial
institution or its agents.
(l) Crimes against financial institutions by insiders
Nothing in this chapter shall apply when any financial institution
or supervisory agency provides any financial record of any officer,
director, employee, or controlling shareholder (within the meaning of
subparagraph (A) or (B) of section 1841(a)(2) of this title or
subparagraph (A) or (B) of section 1730a(a)(2) of this title) of such
institution, or of any major borrower from such institution who there is
reason to believe may be acting in concert with any such officer,
director, employee, or controlling shareholder, to the Attorney General
of the United States, to a State law enforcement agency, or, in the case
of a possible violation of subchapter II of chapter 53 of title 31, to
the Secretary of the Treasury if there is reason to believe that such
record is relevant to a possible violation by such person of--
(1) any law relating to crimes against financial institutions or
supervisory agencies by directors, officers, employees, or
controlling shareholders of, or by borrowers from, financial
institutions; or
(2) any provision of subchapter II of chapter 53 of title 31 or
of section 1956 or 1957 of title 18.
No supervisory agency which transfers any such record under this
subsection shall be deemed to have waived any privilege applicable to
that record under law.
(m) Disclosure to, or examination by, employees or agents of Board of
Governors of Federal Reserve System or Federal Reserve Bank
This chapter shall not apply to the examination by or disclosure to
employees or agents of the Board of Governors of the Federal Reserve
System or any Federal Reserve Bank of financial records or information
in the exercise of the Federal Reserve System's authority to extend
credit to the financial institutions or others.
(n) Disclosure to, or examination by, Resolution Trust Corporation or
its employees or agents
This chapter shall not apply to the examination by or disclosure to
the Resolution Trust Corporation or its employees or agents of financial
records or information in the exercise of its conservatorship,
receivership, or liquidation functions with respect to a financial
institution.
(o) Disclosure to, or examination by, Federal Housing Finance Board or
Federal home loan banks
This chapter shall not apply to the examination by or disclosure to
the Federal Housing Finance Board or any of the Federal home loan banks
of financial records or information in the exercise of the Federal
Housing Finance Board's authority to extend credit (either directly or
through a Federal home loan bank) to financial institutions or others.
(p) Access to information necessary for administration of certain
veteran benefits laws
(1) Nothing in this chapter shall apply to the disclosure by the
financial institution of the name and address of any customer to the
Department of Veterans Affairs where the disclosure of such information
is necessary to, and such information is used solely for the purposes
of, the proper administration of benefits programs under laws
administered by the Secretary.
(2) Notwithstanding any other provision of law, any request
authorized by paragraph (1) (and the information contained therein) may
be used by the financial institution or its agents solely for the
purpose of providing the customer's name and address to the Department
of Veterans Affairs and shall be barred from redisclosure by the
financial institution or its agents.
(q) Disclosure pursuant to Federal contractor-issued travel charge card
Nothing in this chapter shall apply to the disclosure of any
financial record or information to a Government authority in conjunction
with a Federal contractor-issued travel charge card issued for official
Government travel.
(Pub. L. 95-630, title XI, Sec. 1113, Nov. 10, 1978, 92 Stat. 3706; Pub.
L. 98-21, title I, Sec. 121(c)(3)(C), Apr. 20, 1983, 97 Stat. 83; Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99-570, title
I, Sec. 1353(b), Oct. 27, 1986, 100 Stat. 3207-22; Pub. L. 100-690,
title VI, Sec. 6186(c), Nov. 18, 1988, 102 Stat. 4358; Pub. L. 101-73,
title IX, Sec. 942, Aug. 9, 1989, 103 Stat. 497; Pub. L. 101-647, title
I, Sec. 104, Nov. 29, 1990, 104 Stat. 4791; Pub. L. 102-242, title IV,
Sec. 411(2)-(4), Dec. 19, 1991, 105 Stat. 2375; Pub. L. 102-568, title
VI, Sec. 603(a), Oct. 29, 1992, 106 Stat. 4342; Pub. L. 105-264,
Sec. 2(c)(1), Oct. 19, 1998, 112 Stat. 2351.)
References in Text
The Federal Rules of Civil Procedure, referred to in subsec. (e),
are set out in the Appendix to Title 28, Judiciary and Judicial
Procedure.
The Federal Rules of Criminal Procedure, referred to in subsec. (e),
are set out in the Appendix to Title 18, Crimes and Criminal Procedure.
The International Emergency Economic Powers Act, referred to in
subsec. (g), is title II of Pub. L. 95-223, Dec. 28, 1977, 91 Stat.
1626, which is classified generally to chapter 35 (Sec. 1701 et seq.) of
Title 50, War and National Defense. For complete classification of this
Act to the Code, see Short Title note set out under section 1701 of
Title 50 and Tables.
The effective date of this chapter, referred to in subsec. (h)(3),
is the date upon the expiration of 120 days after Nov. 10, 1978. See
section 2101 of Pub. L. 95-630, set out as an Effective Date note under
section 375b of this title.
The Social Security Act, referred to in subsec. (k)(1), is act Aug.
14, 1935, ch. 531, 49 Stat. 620, as amended. Title II of such Act is
classified generally to subchapter II (Sec. 401 et seq.) of chapter 7 of
Title 42, The Public Health and Welfare. For complete classification of
this Act to the Code, see section 1305 of Title 42 and Tables.
The Railroad Retirement Act of 1974, referred to in subsec. (k)(1),
is act Aug. 29, 1935, ch. 812, as amended, generally by Pub. L. 93-445,
title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, which is classified
generally to subchapter IV (Sec. 231 et seq.) of chapter 9 of Title 45,
Railroads. For further details and complete classification of this Act
to the Code, see Codification note set out preceding section 231 of
Title 45, section 231t of Title 45, and Tables.
Amendments
1998--Subsec. (q). Pub. L. 105-264 added subsec. (q).
1992--Subsec. (p). Pub. L. 102-586 added subsec. (p).
1991--Subsec. (h)(1)(A), (4). Pub. L. 102-242, Sec. 411(2), (3),
substituted ``a financial institution (whether or not such proceeding,
investigation, examination, or inspection is also directed at a
customer)'' for ``the financial institution in possession of such
records''.
Subsec. (l). Pub. L. 102-242, Sec. 411(4), inserted at end ``No
supervisory agency which transfers any such record under this subsection
shall be deemed to have waived any privilege applicable to that record
under law.''
1990--Subsec. (l)(2). Pub. L. 101-647 inserted before period at end
``or of section 1956 or 1957 of title 18''.
1989--Subsec. (b). Pub. L. 101-73, Sec. 942(1), amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ``Nothing in
this chapter prohibits examination by or disclosure to any supervisory
agency of financial records or information in the exercise of its
supervisory, regulatory, or monetary functions with respect to a
financial institution.''
Subsecs. (m) to (o). Pub. L. 101-73, Sec. 942(2), added subsecs. (m)
to (o).
1988--Subsec. (l). Pub. L. 100-690 added subsec. (l).
1986--Subsec. (c). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954'', which for purposes
of codification was translated as ``title 26'' thus requiring no change
in text.
Subsec. (i). Pub. L. 99-570 inserted ``, except that a court shall
have authority to order a financial institution, on which a grand jury
subpoena for customer records has been served, not to notify the
customer of the existence of the subpoena or information that has been
furnished to the grand jury, under the circumstances and for the period
specified and pursuant to the procedures established in section 3409 of
this title''.
Subsec. (k)(1). Pub. L. 99-514 substituted ``Internal Revenue Code
of 1986'' for ``Internal Revenue Code of 1954'', which for purposes of
codification was translated as ``title 26'' thus requiring no change in
text.
1983--Subsec. (k). Pub. L. 98-21 added subsec. (k).
Effective Date of 1998 Amendment
Amendment by Pub. L. 105-264 effective Oct. 1, 1983, and applicable
to any records created pursuant to United States Travel and
Transportation Payment and Expense Control System or any Federal
contractor-issued travel charge card issued for official Government
travel, see section 2(c)(2) of Pub. L. 105-264, set out as a Requiring
Use of Travel Charge Card note under section 5701 of Title 5, Government
Organization and Employees.
Effective Date of 1983 Amendment
Amendment by Pub. L. 98-21 applicable to benefits received after
Dec. 31, 1983, in taxable years ending after such date, except for any
portion of a lump-sum payment of social security benefits received after
Dec. 31, 1983, if the generally applicable payment date for such portion
was before Jan. 1, 1984, see section 121(g) of Pub. L. 98-21, set out as
an Effective Date note under section 86 of Title 26, Internal Revenue
Code.
Section Referred to in Other Sections
This section is referred to in sections 3402, 3415 of this title;
title 38 section 5319; title 42 section 652.