32 C.F.R. § 504.2 Procedures.
Title 32 - National Defense
(a) General. A law enforcement official seeking access to a person's financial records will, when feasible, obtain the customer's consent. This section also sets forth other authorized procedures for obtaining financial records if it is not feasible to obtain the customer's consent. Authorized procedures for obtaining financial records follow. All communications with a U.S. Attorney or a U.S. District Court, as required by this part, will be coordinated with the supporting staff judge advocate before dispatch. (b) Customer consent. (1) A law enforcement office may gain access to or a copy of a customer's financial records by obtaining the customer's consent and authorization in writing. (See app. B to this part for a sample format.) Any consent obtained under the provisions of this paragraph must— (i) Be in writing, signed, and dated. (ii) Identify the particular financial records being disclosed. (iii) State that the customer may revoke the consent at any time before disclosure. (iv) Specify the purpose of disclosure and to which agency the records may be disclosed. (v) Authorize the disclosure for a period not over 3 months. (vi) Contain a “'Statement of Customer Rights Under the Right to Financial Privacy Act of 1978” (12 U.S.C. 3401 et seq.) (app. B). (2) Any customer's consent not containing all of the elements listed in paragraph (a) of this section will not be valid. (3) A copy of the customer's consent will be made a part of the law enforcement inquiry file. (4) A certification of compliance with 12 U.S.C. 3401 et seq. (app. C), along with the customer's consent, will be provided to the financial institution as a prerequisite to obtaining access to the financial records. (c) Administrative summons or subpoena. The Army has no authority to issue an administrative summons or subpoena for access to financial records. (d) Search warrant. (1) A law enforcement office may obtain financial records by using a search warrant obtained under Rule 41 of the Federal Rules of Criminal Procedure in appropriate cases. (2) No later than 90 days after the search warrant is served, unless a delay of notice is obtained under §504.2(i), a copy of the search warrant and the following notice must be mailed to the customer's last known address: Records or information concerning your transactions held by the financial institution named in the attached search warrant were obtained by this (office/agency/unit) on (date) for the following purpose: (state purpose). You may have rights under the Right to Financial Privacy Act of 1978. (3) Search authorization signed by installation commanders or military judges will not be used to gain access to financial records from financial institutions in any State or territory of the United States. (4) Access to financial records maintained by military banking contractors in overseas areas or by other financial institutions located on DOD installations outside the United States, Puerto Rico, the District of Columbia, Guam, American Samoa, or the Virgin Islands is preferably obtained by customer consent. (i) In cases where it would not be appropriate to obtain this consent or such consent is refused and the financial institution is not otherwise willing to provide access to its records, the law enforcement activity may seek access by use of a search authorization. This authorization must be prepared and issued per AR 27–10, Military Justice. (ii) Information obtained under this paragraph should be properly identified as financial information. It should be transferred only where an official need-to-know exists. Failure to do so, however, does not render the information inadmissible in courts-martial or other proceedings. (iii) Law enforcement activities seeking access to financial records maintained by all other financial institutions overseas will comply with local foreign statutes or procedures governing such access. (e) Judicial subpoena. Judicial subpoenas— (1) Are those subpoenas issued in connection with a pending judicial proceeding. (2) Include subpoenas issued under Rule for Courts-Martial 703(e)(2) of the Manual for Courts-Martial and Article 46 of the Uniform Code of Military Justice. The servicing staff judge advocate will be consulted on the availability and use of judicial subpoenas. (f) Formal written request. (1) A law enforcement office may formally request financial records when the records are relevant to a legitimate law enforcement inquiry. This request may be issued only if— (i) The customer has declined to consent to the disclosure of his or her records, or (ii) Seeking consent from the customer would compromise or harmfully delay a legitimate law enforcement inquiry. (2) A formal written request will be in a format set forth in appendix D of this part and will— (i) State that the request is issued under the Right to Financial Privacy Act of 1978 and this part. (ii) Described the specific records to be examined. (iii) State that access is sought in connection with a legitimate law enforcement inquiry. (iv) Describe the nature of the inquiry. (v) Be signed by the head of the law enforcement office or a designee (persons specified in §504.1(e)(2)). (3) At the same time or before a formal written request is issued to a financial institution, a copy of the request will be personally served upon or mailed to the customer's last known address unless a delay of customer notice has been obtained under §504.2(i). The notice to the customer will be— (i) In a format similar to appendix E of this part. (ii) Personally served at least 10 days or mailed at least 14 days before the date on which access is sought. (4) The official who signs the customer notice is designated to receive any challenge from the customer. (5) The customer will have 10 days to challenge a notice request when personal service is made, and 14 days when service is by mail. (6) The head of the law enforcement office initiating the formal written request will set up procedures to ensure that no access to financial records is attempted before expiration of the above time periods— (i) While awaiting receipt of a potential customer challenge, or (ii) While awaiting the filing of an application for an injunction by the customer. (7) Proper preparation of the formal written request and notice to the customer requires preparation of motion papers and a statement suitable for court filing by the customer. Accordingly, the law enforcement office intending to initiate a formal written request will coordinate preparation of the request, the notice, motion papers, and sworn statement with the supporting staff judge advocate. These documents are required by statute; their preparation cannot be waived. (8) The supporting staff judge advocate is responsible for liaison with the proper United States Attorney and United States District Court. The requesting official will coordinate with the supporting staff judge advocate to determine whether the customer has filed a motion to prevent disclosure of the financial records within the prescribed time limits. (9) The head of the law enforcement office (§504.2(f)(2)(v)) will certify in writing (see app. C) to the financial institution that such office has complied with the requirements of 12 U.S.C. 3401 et seq.— (i) When a customer fails to file a challenge to access to financial records within the above time periods, or (ii) When a challenge is adjudicated in favor of the law enforcement office. No access to any financial records will be made before such certification is given. (g) Emergency access. Section 504.2(g)(2)(3) provides for emergency access in such cases of imminent danger. (No other procedures in this part apply to such emergency access.) (1) In some cases, the requesting law enforcement office may determine that a delay in obtaining access would create an imminent danger of— (i) Physical injury to a person, (ii) Serious property damage, or (iii) Flight to avoid prosecution. (2) When emergency access is made to financial records, the requesting official (§504.1(e)(2)) will— (i) Certify in writing (in a format similar to that in app. C) to the financial institution that the provisions of 12 U.S.C. 3401 et seq. have been complied with as a prerequisite to obtaining access. (ii) File with the proper court a signed, sworn statement setting forth the grounds for the emergency access within 5 days of obtaining access to financial records. (3) After filing of the signed, sworn statement, the official who has obtained access to financial records under this paragraph will as soon as practicable— (i) Personally serve or mail to the customer a copy of the request to the financial institution and the following notice, unless a delay of notice has been obtained under §504.2(i):
Records concerning your transactions held by the financial institution named in the attached request were obtained by (office/agency/unit) under the Right to Financial Privacy Act of 1978 on (date) for the following purpose: (state with reasonable detail the nature of the law enforcement inquiry). Emergency access to such records was obtained on the grounds that (state grounds). (ii) Ensure that mailings under this section are by certified or registered mail to the last known address of the customer. (h) Release of information obtained from financial institutions—(1) Records notice. Financial records, to include derived information, obtained under 12 U.S.C. 3401 et seq. will be marked as follows:
This record was obtained pursuant to the Right to Financial Privacy Act of 1978, 12 U.S.C. 3401 et seq., and may not be transferred to another Federal agency or department outside DOD without prior compliance with the transferring requirements of 12 U.S.C. 3412. (2) Records transfer. (i) Financial records originally obtained under this part will not be transferred to another agency or department outside the DOD unless the transferring law enforcement office certifies their relevance in writing. Certification will state that there is reason to believe that the records are relevant to a legitimate law enforcement inquiry within the jurisdiction of the receiving agency or department. To support this certification, the transferring office may require that the requesting agency submit adequate justification for its request. File a copy of this certification with a copy of the released records. (ii) Unless a delay of customer notice has been obtained (§504.2(i)), the transferring law enforcement office will, within 14 days, personally serve or mail the following to the customer at his or her last known address— (A) A copy of the certification made according to §504.2(h)(2)(i) and (B) The following notice, which will state the nature of the law enforcement inquiry with reasonable detail:
Copies of, or information contained in, your financial records lawfully in possession of the Department of the Army have been furnished to (state the receiving agency or department) pursuant to the Right to Financial Privacy Act of 1978 for (state the 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. (iii) If a request for release of information is from a Federal agency authorized to conduct foreign intelligence or foreign counterintelligence activities (Executive Order 12333) and is for purposes of conducting such activities by these agencies, the information will be released without notifying the customer, unless permission to provide notification is given in writing by the requesting agency. (iv) Financial information obtained before the effective date of the Financial Privacy Act of 1978 (March 10, 1979) may continue to be provided to other agencies according to existing procedures, to include applicable Privacy Act System Notices published in AR 340–21 series. (3) Precautionary measures. Whenever financial data obtained under this part is incorporated into a report of investigation or other correspondence, precautions must be taken to ensure that— (i) The report or correspondence is not distributed outside of DOD except in compliance with paragraph (h)(2)(ii)(B) of this section. (ii) The report or other correspondence contains the following warning restriction on the first page or cover:
Some of the information contained herein (cite specific paragraphs) is financial record information which was obtained pursuant to the Right to Financial Privacy Act of 1978, 12 U.S.C. 3401 et seq. This information may not be released to another Federal agency or department outside the DOD without compliance with the specific requirements of 12 U.S.C. 3412 and AR 190–6. (i) Delay of customer notice procedures—(1) Length of delay. The customer notice required by formal written request (§504.2(f)(3)), emergency access (§504.2(g)(3)), and release of information (§504.2(h)(2)(iii)) may be delayed for successive periods of 90 days. The notice required for search warrant (§504.2(d)(2)) may be delayed for one period of 180 days and successive periods of 90 days. (2) Conditions for delay. A delay of notice may only be made by an order of an appropriate court. This will be done when not granting a delay in serving the notice would result in— (i) Endangering the life or physical safety of any person. (ii) Flight from prosecution. (iii) Destruction of or tampering with evidence. (iv) Intimidation of potential witnesses. (v) Otherwise seriously jeopardizing an investigation or official proceeding or unduly delaying a trial or ongoing official proceeding to the same degree as the circumstances in §504.2(i)(2)(i) through (iv). (3) Coordination. When a delay of notice is appropriate, the law enforcement office involved will consult with the supporting staff judge advocate before attempting to obtain such a delay. Applications for delay of notice should contain reasonable detail. (4) After delay expiration. Upon the expiration of a delay of notice under above and required by— (i) Section 504.2(d)(2), the law enforcement office obtaining financial records will mail to the customer a copy of the search warrant and the following notice.
Records or information concerning your transactions held by the financial institution named in the attached search warrant were obtained by this (agency or office) on (date). Notification was delayed beyond the statutory 180-day delay period pursuant to a determination by the court that such notice would seriously jeopardize an investigation concerning (state with reasonable detail). You may have rights under the Right to Financial Privacy Act of 1978. (ii) Section 504.2(f)(3), the law enforcement office obtaining financial records will serve personally or mail to the customer a copy of the process or request and the following notice:
Records or information concerning your transactions which are held by the financial institution named in the attached process or request were supplied to or requested by the Government authority named in the process or request on (date). Notification was withheld pursuant to a determination by the (title of the court so ordering) under the Right to Financial Privacy Act of 1978 that such notice might (state reason). The purpose of the investigation or official proceeding was (state purpose with reasonable detail). (iii) Section 504.2(g)(3), the law enforcement office obtaining financial records will serve personally or mail to the customer a copy of the request and the notice required by §504.2(g)(3). (iv) Section 504.2(h)(2), the law enforcement office transferring financial records will serve personally or mail to the customer the notice required by §504.2(f)(3). If the law enforcement office was responsible for obtaining the court order authorizing the delay, such office shall also serve personally or by mail to the customer the notice required in §504.2(f)(3). (j) Foreign intelligence and foreign counterintelligence activities. (1) Except as indicated below, nothing in this regulation applies to requests for financial information in connection with authorized foreign intelligence and foreign counterintelligence activities as defined in Executive Order 12333. Appropriate foreign intelligence and counterintelligence directives should be consulted in these instances. (2) However, to comply with the Financial Privacy Act of 1978, the following guidance will be followed for such requests. When a request for financial records is made— (i) A military intelligence group commander, the chief of an investigative control office, or the Commanding General (CG) (or Deputy CG), U.S. Army Intelligence and Security Command, will certify to the financial institution that the requesting activity has complied with the provisions of 12 U.S.C. 3403(b). (ii) The requesting official will notify the financial institution from which records are sought that 12 U.S.C. 3414(a)(3) prohibits disclosure to any person by the institution, its agents, or employees that financial records have been sought or obtained. (k) Certification. A certificate of compliance with the Right to Financial Privacy Act of 1978 (app. C) will be provided to the financial institution as a prerequisite to obtaining access to financial records under the following access procedures: (1) Customer consent (§504.2(b)). (2) Search warrant (§504.2(d)). (3) Judicial subpoena (§504.2(e)). (4) Formal written request (§504.2(f)). (5) Emergency access (§504.2(g)). (6) Foreign intelligence and foreign counterintelligence activities (§504.2(j)).
Title 32: National Defense
PART 504—OBTAINING INFORMATION FROM FINANCIAL INSTITUTIONS
§ 504.2 Procedures.
