Rule2022-28539
Notification of Inflation Adjustments for Civil Money Penalties
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 4, 2023
Issuing agencies
Treasury DepartmentComptroller of the Currency
Abstract
This document announces changes to the Office of the Comptroller of the Currency's (OCC) maximum civil money penalties as adjusted for inflation. The inflation adjustments are required to implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
Full Text
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<title>Federal Register, Volume 88 Issue 2 (Wednesday, January 4, 2023)</title>
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[Federal Register Volume 88, Number 2 (Wednesday, January 4, 2023)]
[Rules and Regulations]
[Pages 289-291]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-28539]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 88, No. 2 / Wednesday, January 4, 2023 /
Rules and Regulations
[[Page 289]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 19 and 109
Notification of Inflation Adjustments for Civil Money Penalties
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Notification of Monetary Penalties 2023.
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SUMMARY: This document announces changes to the Office of the
Comptroller of the Currency's (OCC) maximum civil money penalties as
adjusted for inflation. The inflation adjustments are required to
implement the Federal Civil Penalties Inflation Adjustment Act of 1990,
as amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.
DATES: The adjusted maximum amount of civil money penalties in this
document are applicable to penalties assessed on or after January 4,
2023 for conduct occurring on or after November 2, 2015.
FOR FURTHER INFORMATION CONTACT: Lee Walzer, Counsel, Chief Counsel's
Office, (202) 649-5490, Office of the Comptroller of the Currency.
SUPPLEMENTARY INFORMATION: This document announces changes to the
maximum amount of each civil money penalty (CMP) within the OCC's
jurisdiction to administer to account for inflation pursuant to the
Federal Civil Penalties Inflation Adjustment Act of 1990 (the 1990
Adjustment Act),\1\ as amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (the 2015 Adjustment Act).\2\
Under the 1990 Adjustment Act, as amended, federal agencies must make
annual adjustments to the maximum amount of each CMP they administer.
The Office of Management and Budget (OMB) is required to issue guidance
to federal agencies no later than December 15 of each year providing an
inflation adjustment multiplier (i.e., the inflation adjustment factor
agencies must use) applicable to CMPs assessed in the following year.
The agencies are required to publish their CMPs, adjusted pursuant to
the multiplier provided by the OMB, by January 15 of the applicable
year.
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\1\ Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at
28 U.S.C. 2461 note.
\2\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015,
129 Stat. 599, codified at 28 U.S.C. 2461 note.
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To the extent an agency codified a CMP amount in its regulations,
the agency would need to update that amount by regulation. However, if
an agency codified a formula for making the CMP adjustments, then
subsequent adjustments can be made solely by notice.\3\ In 2018, the
OCC published a final regulation that removed the CMP amounts from its
regulations while updating the CMP amounts for inflation through the
notice process.\4\
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\3\ See OMB Memorandum M-18-03, Implementation of the 2018
Annual Adjustment Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, at 4, which permits
agencies that have codified the formula to adjust CMPs for inflation
to update the penalties through a notice rather than a regulation.
\4\ 83 FR 1517 (Jan. 12, 2018) (final rule); 83 FR 1657 (Jan.
12, 2018) (2018 CMP Notice).
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On December 15, 2022, the OMB issued guidance to affected agencies
on implementing the required annual adjustment, which included the
relevant inflation multiplier.\5\ The OCC has applied that multiplier
to the maximum CMPs allowable in 2022 for national banks and Federal
savings associations as listed in the 2022 CMP notice \6\ to calculate
the maximum amount of CMPs that may be assessed by the OCC in 2023.\7\
There were no new statutory CMPs administered by the OCC during 2022.
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\5\ The inflation adjustment multiplier for 2023 is 1.07745. See
OMB Memorandum M-23-05, Implementation of Penalty Inflation
Adjustments for 2023, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Dec. 15, 2022).
\6\ See 87 FR 1657 (Jan. 12, 2022).
\7\ Penalties assessed for violations occurring prior to
November 2, 2015, will be subject to the maximum amounts set forth
in the OCC's regulations in effect prior to the enactment of the
2015 Adjustment Act.
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The following charts provide the inflation-adjusted CMPs for use
beginning on January 4, 2023, pursuant to 12 CFR 19.240(b) and
109.103(c)(2) for conduct occurring on or after November 2, 2015:
Penalties Applicable to National Banks
------------------------------------------------------------------------
Maximum
Description and tier penalty amount
U.S. code citation (if applicable) (in dollars)
\1\
------------------------------------------------------------------------
12 U.S.C. 93(b)................. Violation of Various
Provisions of the
National Bank Act:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
12 U.S.C. 164................... Violation of Reporting
Requirements:
Tier 1............. 4,745
Tier 2............. 47,454
Tier 3............. \2\ 2,372,677
12 U.S.C. 481................... Refusal of Affiliate 11,864
to Cooperate in
Examination.
12 U.S.C. 504................... Violation of Various
Provisions of the
Federal Reserve Act:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
[[Page 290]]
12 U.S.C. 1817(j)(16)........... Violation of Change in
Bank Control Act:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
12 U.S.C. 1818(i)(2) \3\........ Violation of Law,
Unsafe or Unsound
Practice, or Breach
of Fiduciary Duty:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
12 U.S.C. 1820(k)(6)(A)(ii)..... Violation of Post-
Employment
Restrictions:
Per violation...... 390,271
12 U.S.C. 1832(c)............... Violation of
Withdrawals by
Negotiable or
Transferable
Instrument for
Transfers to Third
Parties:
Per violation...... 3,446
12 U.S.C. 1884.................. Violation of the Bank 345
Protection Act.
12 U.S.C. 1972(2)(F)............ Violation of Anti-
Tying Provisions
regarding
Correspondent
Accounts, Unsafe or
Unsound Practices, or
Breach of Fiduciary
Duty:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
12 U.S.C. 3110(a)............... Violation of Various 54,224
Provisions of the
International Banking
Act (Federal Branches
and Agencies):.
12 U.S.C. 3110(c)............... Violation of Reporting
Requirements of the
International Banking
Act (Federal Branches
and Agencies):
Tier 1............. 4,339
Tier 2............. 43,377
Tier 3............. \2\ 2,168,915
12 U.S.C. 3909(d)(1)............ Violation of 2,951
International Lending
Supervision Act.
15 U.S.C. 78u-2(b).............. Violation of Various
Provisions of the
Securities Act, the
Securities Exchange
Act, the Investment
Company Act, or the
Investment Advisers
Act:
Tier 1 (natural 11,162
person)--Per
violation.
Tier 1 (other 111,614
person)--Per
violation.
Tier 2 (natural 111,614
person)--Per
violation.
Tier 2 (other 558,071
person)--Per
violation.
Tier 3 (natural 223,229
person)--Per
violation.
Tier 3 (other 1,116,140
person)--Per
violation.
15 U.S.C. 1639e(k).............. Violation of Appraisal
Independence
Requirements:
First violation.... 13,627
Subsequent 27,252
violations.
42 U.S.C. 4012a(f)(5)........... Flood Insurance:
Per violation...... 2,577
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\1\ The maximum penalty amount is per day, unless otherwise indicated.
\2\ The maximum penalty amount for a national bank is the lesser of this
amount or 1 percent of total assets.
\3\ These amounts also apply to CMPs in statutes that cross-reference 12
U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15
U.S.C. 1607, 1693o, 1681s, 1691c, and 1692l.
Penalties Applicable to Federal Savings Associations
------------------------------------------------------------------------
Maximum
penalty amount
U.S. code citation CMP description (in dollars)
\8\
------------------------------------------------------------------------
12 U.S.C. 1464(v)............... Reports of Condition:
1st Tier........... 4,745
2nd Tier........... 47,454
3rd Tier........... \2\ 2,372,677
12 U.S.C. 1467(d)............... Refusal of Affiliate 11,864
to Cooperate in
Examination.
12 U.S.C. 1467a(r).............. Late/Inaccurate
Reports:
1st Tier........... 4,745
2nd Tier........... 47,454
3rd Tier........... \2\ 2,372,677
12 U.S.C. 1817(j)(16)........... Violation of Change in
Bank Control Act:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
12 U.S.C. 1818(i)(2) \3\........ Violation of Law,
Unsafe or Unsound
Practice, or Breach
of Fiduciary Duty:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
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12 U.S.C. 1820(k)(6)(A)(ii)..... Violation of Post-
Employment
Restrictions:
Per violation...... 390,271
12 U.S.C. 1832(c)............... Violation of
Withdrawals by
Negotiable or
Transferable
Instruments for
Transfers to Third
Parties:
Per violation...... 3,132
12 U.S.C. 1884.................. Violation of the Bank 345
Protection Act.
12 U.S.C. 1972(2)(F)............ Violation of
Provisions regarding
Correspondent
Accounts, Unsafe or
Unsound Practices, or
Breach of Fiduciary
Duty:
Tier 1............. 11,864
Tier 2............. 59,316
Tier 3............. \2\ 2,372,677
15 U.S.C. 78u-2(b).............. Violations of Various
Provisions of the
Securities Act, the
Securities Exchange
Act, the Investment
Company Act, or the
Investment Advisers
Act:
1st Tier (natural 11,162
person)--Per
violation.
1st Tier (other 111,614
person)--Per
violation.
2nd Tier (natural 111,614
person)--Per
violation.
2nd Tier (other 558,071
person)--Per
violation.
3rd Tier (natural 223,229
person)--Per
violation.
3rd Tier (other 1,116,140
person)--Per
violation.
15 U.S.C. 1639e(k).............. Violation of Appraisal
Independence
Requirements:
First violation.... 13,627
Subsequent 27,252
violations.
42 U.S.C. 4012a(f)(5)........... Flood Insurance:
Per violation...... 2,577
------------------------------------------------------------------------
\8\ The maximum penalty amount is per day, unless otherwise indicated.
\2\ The maximum penalty amount for a federal savings association is the
lesser of this amount or 1 percent of total assets.
\3\ These amounts also apply to statutes that cross-reference 12 U.S.C.
1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 U.S.C.
1607, 1681s, 1691c, and 1692l.
D.J. Fink,
Associate Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2022-28539 Filed 1-3-23; 8:45 am]
BILLING CODE 4810-33-P
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</html>Indexed from Federal Register on January 4, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.