Reimbursement of Financial Institutions
Section 3415 of the Act requires Government authorities to reimburse
financial institutions for the costs incurred in furnishing certain
records of individuals and partnerships of five or less individuals in
with law enforcement inquiries.|
The costs incurred by a financial institution in supplying information
pursuant to requests by the Department under 12 U.S.C.
3413(i)-(o), 3414 are reimbursable by the Department. No payment shall be
unless the financial institution submits an itemized bill or invoice showing
specific details concerning the search, reproduction, and transportation
(Witness and mileage fees will be treated in the same manner as other
The following rates of reimbursement have been established by the
Reserve Board in accordance with the Right To Financial Privacy Act (12
§ 3415) and are published at 12 CFR 219 (Regulation S):
- Actual search and retrieval costs - $2.50 per quarter hour for
spent by employees in locating, retrieving, reproducing, packaging and/or
preparing documents for shipment;
- Actual computer costs - time and necessary supplies;
- Reproduction costs - 15 cents per page; and
- Transportation costs - to locate and retrieve records and/or to
summoned records to the Department of Justice attorney's office.
Investigative agencies are responsible for costs incurred pursuant to
activities, up to the time that judicial process (a grand jury subpoena, a
subpoena or a search warrant) is used to obtain financial information. At
point, the proper litigating component becomes responsible for costs
pursuant to its activities.
The costs other than witness expenses will be treated as administrative
costs, classified under the following object classification codes (O/C):
- O/C 2540 is used when a customer authorizes disclosure of
data, 12 U.S.C. § 3404.
- O/C 2541 is used when financial records are obtained pursuant to an
administrative subpoena or summons, 12 U.S.C. § 3405.
- O/C 2542 is used when financial records are obtained pursuant to a
warrant, 12 U.S.C. § 3406.
- O/C 2543 is used when financial records are obtained pursuant to a
subpoena, 12 U.S.C. § 3407.
- O/C 2544 is used when financial records are obtained pursuant to a
formal written request, 12 U.S.C. § 3408.
- O/C 2545 is used when financial records are obtained pursuant to a
Jury, subpoena, 12 U.S.C. § 3413(i).
- O/C 2546 is used when financial records are obtained pursuant to
procedures, 12 U.S.C. § 3414.
Financial institutions shall complete Section B of the Request for
Financial Information, Form OBD 211, and return the form, together with the
requested information, to the Requesting officer or designee which shall be
officer of the initiating U.S. Attorney's office or litigating division.
appropriate official shall review the invoice to determine that it is
that costs are reasonable, and that the services and/or records were
If these criteria are met, the official shall approve the invoice by signing
indicating the appropriate P.L. Section, and forwarding it to the
office to assign the appropriate accounting classification code.
Administrative Officials shall forward all approved originals to:
U.S. Department of Justice
Fiscal Data Service Group /sos
601 D Street NW, Room 5414
Patrick Henry Building
Washington, D.C. 20530
Invoices received by the Accounting Operations Group which are not
itemized or approved will be returned to the requesting officer. U.S.
WILL NOT pay for these invoices unless a specific authorization is made by
Form R (found at the end of this chapter) is a sample notice which
be submitted to financial institutions with Form OBD-211 to summarize
reimbursement procedures and restrictions.
Before approving Forms OBD-211, Request for Financial Information, or
payment, Administrative Officers must:
- Ensure that the financial records requested pertain to legitimate
"customers" as defined in the Act (i.e., individuals and partnerships of
less individuals). Reimbursement cannot be made when the financial records
relate to any other legal entities. Pittsburgh Nat'l Bank v.
United States, 771 F.2d 73 (3rd Cir. 1985)(bank was not entitled
reimbursement for producing records of corporation).
- Ensure that reimbursements are authorized only for legitimate
institutions" as defined in the Act.
- Ensure that Forms OBD-211 are properly prepared, that the appropriate
"Section" in Item Number 18 is identified, and that the rates of
are in accordance with the entitlement and limitations authorized.
- Work with attorneys or investigative agents handling cases and
institutions, if necessary, to ensure that amounts charged are reasonable
services actually received.
Note: The government is not required to reimburse financial
records when the subject of the investigation is the financial institution
possession of the records sought.
In re Grand Jury Proceedings, 636 F.2d 81 (5th Cir. 1981).