Privacy Act of 1974; System of Records

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. PA-63; File No. S7-2025-05]</DEPDOC> <SUBJECT>Privacy Act of 1974; System of Records</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Securities and Exchange Commission. <HD SOURCE="HED">ACTION:</HD> Notice of a modified system of records. <SUM> <HD SOURCE="HED">SUMMARY:</HD> In accordance with the Privacy Act of 1974 and Office of Management and Budget (“OMB”) Circular A-108, the Securities and Exchange Commission (“Commission” or “SEC”) is proposing a modification to its system of records notice (SORN), SEC-06, SEC's Financial and Acquisition Management System (“SEC-06”). This proposed update introduces a new routine use to comply with Executive Order (E.O.) 14249, Protecting America's Bank Account Against Fraud, Waste, and Abuse. The change supports enhanced efforts to safeguard federal financial systems and ensure responsible stewardship of public funds. The modified SORN does not change the categories of individuals, the record collection process, the authorities, or the purpose of collection. It also does not affect individuals' rights to access or amend their records under the Privacy Act. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> In accordance with 5 U.S.C. 552a(e)(4) and (11), this notice is effective upon publication, subject to a 30-day period in which to comment on the routine use, described below. Comments may be submitted on or before January 22, 2026. </DATES> <HD SOURCE="HED">ADDRESSES:</HD> Comments may be submitted by any of the following methods: <HD SOURCE="HD2">Electronic Comments </HD> • Use the SEC's internet comment form ( <E T="03">http://www.sec.gov/rules/other.shtml</E> ); or • Send an email to <E T="03">rule-comments@sec.gov.</E> Please include File Number S7-2025-05 on the subject line. <HD SOURCE="HD2">Paper Comments </HD> • Send paper comments to: Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number S7-2025-05. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method of submission. The Commission will post all comments on the Commission's website ( <E T="03">http://www.sec.gov/rules/other.shtml</E> ). Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Ronnette McDaniel, Branch Chief, Privacy and Information Assurance Branch, 202-551-7200 or <E T="03">privacyhelp@sec.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> On March 25, 2025, Executive Order 14249 was issued to modernize federal financial oversight, strengthen controls over U.S. General Fund transactions, and combat fraud, waste, and abuse. It consolidates payment systems, mandates electronic transactions, and enhances accountability in government financial operations. The E.O. requires federal agencies to overhaul their financial practices by modernizing payment systems, instituting robust pre-certification for all payment transactions, and increasing data sharing with the Department of Treasury (“Treasury”) to prevent fraud and improper payments. In support of this effort, OMB Memorandum M-25-32 requires agencies to review and update their System of Records Notices (SORNs) under the Privacy Act, as relevant and necessary, to include a new routine use clause that allows for the sharing of records with the Treasury to review payment and award eligibility through the Do Not Pay Working System. To ensure compliance with the review and update requirements outlined in Executive Order 14249 and OMB Memorandum M-25-32, the Commission conducted a comprehensive review of its SORN inventory to identify and implement necessary modifications. The proposed modification to add a new routine use to the identified SORN, SEC-06, aligns with the Privacy Act and incorporates the new requirements introduced by OMB Memorandum M-25-32. Accordingly, the Commission is proposing to modify SEC-06 to add new routine use number 14 as follows: “To the U.S. Department of the Treasury when disclosure of the information is relevant to review payment and award eligibility through the Do Not Pay Working System for the purposes of identifying, preventing, or recouping improper payments to an applicant for, or recipient of, Federal funds, including funds disbursed by a state (meaning a state of the United States, the District of Columbia, a territory or possession of the United States, or a federally recognized Indian tribe) in a state-administered, federally funded program.” The remaining routine uses were previously published. In accordance with 5 U.S.C. 552a(r), we have provided a report to OMB and Congress on the proposal to modify the system of records. <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD> SEC-06: SEC's Financial and Acquisition Management System. <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD> Unclassified. <HD SOURCE="HD2">SYSTEM LOCATION:</HD> 1. Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. Files may also be maintained in the Commission's Regional Offices. 2. Federal Aviation Administration, Mike Monroney Aeronautical Center, AMZ-740, 6500 S. MacArthur Blvd., Headquarters Bldg. 1, Oklahoma City, OK 73169. <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD> Chief Financial Officer, Office of Financial Management, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-6041. <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD> 31 U.S.C. 3501, <E T="03">et seq.</E> and 31 U.S.C. 7701(c). Where the employee identification number is the social security number, collection of this information is authorized by Executive Order 9397. <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD> Serves as the core financial system and integrates program, financial and budgetary information. Records are collected to ensure that all obligations and expenditures other than those in the pay and leave system are in conformance with laws, existing rules and regulations, and good business practice, and to maintain subsidiary records at the proper account and/or organizational level where responsibility for control of costs exists. <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD> SEC employees, contractors, vendors, interns, customers and members of the public. <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD> Employee personnel information: Limited to SEC employees, and includes name, address, Social Security number (SSN); Business-related information: Limited to contractors/vendors and customers, and includes name of the company/agency, point of contact, telephone number, mailing address, email address, contract number, CAGE code, vendor number (system unique identifier), DUNS number, and TIN, which could be a SSN in the case of individuals set up as sole proprietors; and financial information, this includes financial institution name, lockbox number, routing transit number, deposit account number, account type, debts ( <E T="03">e.g.,</E> unpaid bills/invoices, overpayments, etc.), and remittance address. <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD> The information maintained in Department of Transportation, (DOT)/Enterprise Service Center (ESC): Purchase orders, vouchers, invoices, contracts, and electronic records; Department of Interior (DOI)/Federal Personnel Payroll System (FPPS): travel applications, disgorgement information, or other paper records submitted by employees, vendors, and other sources, including claims filed by witnesses in SEC actions; Delphi-Prism: Fed Traveler, Department of the Interior (DOI) Payroll System, Bureau of Public Debt, and EDGAR Financial Management System (EFMS). <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES:</HD> In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act, these records or information contained therein may specifically be disclosed outside the Commission as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows: 1. To appropriate agencies, entities, and persons when (1) the SEC suspects or has confirmed that there has been a breach of the system of records; (2) the SEC has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, the SEC (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 reasonably necessary to assist in connection with the SEC's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm. 2. To other federal, state, local, or foreign law enforcement agencies; securities self-regulatory organizations; and foreign financial regulatory authorities to assist in or coordinate regulatory or law enforcement activities with the SEC. 3. In any legal proceeding where the federal securities laws are in issue or in which the Commission, or past or present members of its staff, is a party or otherwise involved in an official capacity, and the SEC has determined that information from this system of records is relevant and necessary to the litigation and compatible with the purpose for which the records were collected. 4. To a federal, state, local, tribal, foreign, or international agency, if necessary to obtain information relevant to the SEC's decision concerning the hiring or retention of an empl ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 18k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━