12 USC 3413 - Exceptions

U.S Code last checked for updates: May 02, 2024

§ 3413.

Exceptions

(a)

Disclosure of financial records not identified with particular customers

(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

(c)

Disclosure pursuant to title 26

(d)

Disclosure pursuant to Federal statute or rule promulgated thereunder

(e)

Disclosure pursuant to Federal Rules of Criminal Procedure or comparable rules of other courts

(f)

Disclosure pursuant to administrative subpena issued by administrative law judge

(g)

Disclosure pursuant to legitimate law enforcement inquiry respecting name, address, account number, and type of account of particular customers

(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

(j)

Disclosure pursuant to proceeding, investigation, etc., instituted by Government Accountability Office and directed at a government authority

(k)

Disclosure necessary for proper administration of programs of certain Government authorities

(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)

Nothing in this chapter shall apply to the disclosure by the financial institution of information contained in the financial records of any customer to any Government authority that certifies, disburses, or collects payments, where the disclosure of such information is necessary to, and such information is used solely for the purpose of—

(A)

verification of the identity of any person or proper routing and delivery of funds in connection with the issuance of a Federal payment or collection of funds by a Government authority; or

(B)

the investigation or recovery of an improper Federal payment or collection of funds or an improperly negotiated Treasury check.

(3)

Notwithstanding any other provision of law, a request authorized by paragraph (1) or (2) (and the information contained therein) may be used by the financial institution or its agents solely for the purpose of providing information contained in the financial records of the customer to the Government authority requesting the information, and the financial institution and its agents shall be barred from redisclosure of such information. Any Government authority receiving information pursuant to paragraph (1) or (2) may not disclose or use the information, except for the purposes set forth in such paragraph.

(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

(n)

Disclosure to, or examination by, Resolution Trust Corporation or its employees or agents

(o)

Disclosure to, or examination by, Federal Housing Finance Agency or Federal home loan banks

(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

(r)

Disclosure to the Bureau of Consumer Financial Protection

(Pub. L. 95–630, title XI, § 1113, Nov. 10, 1978, 92 Stat. 3706; Pub. L. 98–21, title I, § 121(c)(3)(C), Apr. 20, 1983, 97 Stat. 83; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99–570, title I, § 1353(b), Oct. 27, 1986, 100 Stat. 3207–22; Pub. L. 100–690, title VI, § 6186(c), Nov. 18, 1988, 102 Stat. 4358; Pub. L. 101–73, title IX, § 942, Aug. 9, 1989, 103 Stat. 497; Pub. L. 101–647, title I, § 104, Nov. 29, 1990, 104 Stat. 4791; Pub. L. 102–242, title IV, § 411(2)–(4), Dec. 19, 1991, 105 Stat. 2375; Pub. L. 102–568, title VI, § 603(a), Oct. 29, 1992, 106 Stat. 4342; Pub. L. 105–264, § 2(c)(1), Oct. 19, 1998, 112 Stat. 2351; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 110–234, title XIV, § 14205, May 22, 2008, 122 Stat. 1459; Pub. L. 110–246, § 4(a), title XIV, § 14205, June 18, 2008, 122 Stat. 1664, 2221; Pub. L. 110–289, div. A, title II, § 1216(a), July 30, 2008, 122 Stat. 2792; Pub. L. 111–203, title X, § 1099(3), July 21, 2010, 124 Stat. 2105.)

cite as: 12 USC 3413