Notice2022-28655

Notice of Inflation Adjustments for Civil Money Penalties

Primary source

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 5, 2023

Issuing agencies

Federal Deposit Insurance Corporation

Abstract

The Federal Deposit Insurance Corporation is providing notice of its maximum civil money penalties as adjusted for inflation.

Full Text

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<title>Federal Register, Volume 88 Issue 3 (Thursday, January 5, 2023)</title>
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[Federal Register Volume 88, Number 3 (Thursday, January 5, 2023)]
[Notices]
[Pages 861-863]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-28655]


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FEDERAL DEPOSIT INSURANCE CORPORATION

RIN 3064-ZA35


Notice of Inflation Adjustments for Civil Money Penalties

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of monetary penalties 2023.

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SUMMARY: The Federal Deposit Insurance Corporation is providing notice 
of its maximum civil money penalties as adjusted for inflation.

DATES: The adjusted maximum amounts of civil money penalties in this 
notice are applicable to penalties assessed after January 15, 2023, for 
conduct occurring on or after November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Graham N. Rehrig, Counsel, Legal 
Division, 703-314-3401, <a href="/cdn-cgi/l/email-protection#385f4a5d504a515f785e5c515b165f574e"><span class="__cf_email__" data-cfemail="ff988d9a978d9698bf999b969cd1989089">[email&#160;protected]</span></a>; Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: This notice announces changes to the maximum 
amount of each civil money penalty (CMP) within the Federal Deposit 
Insurance Corporation's (FDIC) jurisdiction to administer to account 
for inflation under the Federal Civil Penalties Inflation Adjustment 
Act of 1990 (1990 Adjustment Act),\1\ as amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 
Adjustment Act).\2\ Under the 1990 Adjustment Act, as amended, Federal 
agencies must make annual adjustments to the maximum amount of each CMP 
the agency administers. 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.
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    \1\ Public Law 101-410, 104 Stat. 890, codified at 28 U.S.C. 
2461 note.
    \2\ Public Law 114-74, 701(b), 129 Stat. 599, codified at 28 
U.S.C. 2461 note.
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    Agencies are required to publish their CMPs, adjusted under the 
multiplier provided by the OMB, by January 15 of the applicable year. 
Agencies like the FDIC that have codified the statutory formula for 
making the CMP adjustments may make annual inflation adjustments by 
providing notice in the Federal Register.\3\
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    \3\ See Office of Mgmt. & Budget, Exec. Office of the President, 
OMB Memorandum No. M-23-05, Implementation of Penalty Inflation 
Adjustments for 2023, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 4 (Dec. 15, 2022), 
<a href="https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf">https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf</a> (OMB Guidance); see also 12 CFR 308.132(d) (FDIC 
regulation that guides readers to the Federal Register to see the 
annual notice of CMP inflation adjustments).
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    On December 15, 2022, the OMB issued guidance to affected agencies 
on implementing the required annual adjustment, which guidance included 
the relevant inflation multiplier.\4\ The FDIC has applied that 
multiplier to the maximum CMPs allowable in 2022 for FDIC-supervised 
institutions to calculate the maximum amount of CMPs that may be 
assessed by the FDIC in 2023.\5\ There were no new statutory CMPs 
administered by the FDIC during 2022.
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    \4\ See OMB Guidance at 1 (providing an inflation multiplier of 
1.07745).
    \5\ Penalties assessed for violations occurring prior to 
November 2, 2015, will be subject to the maximum amounts set forth 
in the FDIC's regulations in effect prior to the enactment of the 
2015 Adjustment Act.
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    The following charts provide the inflation-adjusted maximum CMP 
amounts for use after January 15, 2023--the effective date of the 2023 
annual adjustments--under 12 CFR part 308, for conduct occurring on or 
after November 2, 2015:

                   Maximum Civil Money Penalty Amounts
------------------------------------------------------------------------
                                   Current maximum     Adjusted maximum
       U.S. code citation            CMP (through     CMP \6\ (beginning
                                  January 14, 2023)   January 15, 2023)
------------------------------------------------------------------------
12 U.S.C. 1464(v):
    Tier One CMP \7\............             $4,404               $4,745
    Tier Two CMP................             44,043               47,454
    Tier Three CMP \8\..........          2,202,123            2,372,677
12 U.S.C. 1467(d)...............             11,011               11,864

[[Page 862]]

 
12 U.S.C. 1817(a):
    Tier One CMP \9\............              4,404                4,745
    Tier Two CMP................             44,043               47,454
    Tier Three CMP \10\.........          2,202,123            2,372,677
12 U.S.C. 1817(c):
    Tier One CMP................              4,027                4,339
    Tier Two CMP................             40,259               43,377
    Tier Three CMP \11\.........          2,013,008            2,168,915
12 U.S.C. 1817(j)(16):
    Tier One CMP................             11,011               11,864
    Tier Two CMP................             55,052               59,316
    Tier Three CMP \12\.........          2,202,123            2,372,677
12 U.S.C. 1818(i)(2) \13\:
    Tier One CMP................             11,011               11,864
    Tier Two CMP................             55,052               59,316
    Tier Three CMP \14\.........          2,202,123            2,372,677
12 U.S.C. 1820(e)(4)............             10,066               10,846
12 U.S.C. 1820(k)(6)............            362,217              390,271
12 U.S.C. 1828(a)(3)............                137                  148
12 U.S.C. 1828(h) \15\:
    For assessments <$10,000....                137                  148
12 U.S.C. 1829b(j)..............             23,011               24,793
12 U.S.C. 1832(c)...............              3,198                3,446
12 U.S.C. 1884..................                320                  345
12 U.S.C. 1972(2)(F):
    Tier One CMP................             11,011               11,864
    Tier Two CMP................             55,052               59,316
    Tier Three CMP \16\.........          2,202,123            2,372,677
12 U.S.C. 3909(d)...............              2,739                2,951
15 U.S.C. 78u-2:
    Tier One CMP (individuals)..             10,360               11,162
    Tier One CMP (others).......            103,591              111,614
    Tier Two CMP (individuals)..            103,591              111,614
    Tier Two CMP (others).......            517,955              558,071
    Tier Three CMP (individuals)            207,183              223,229
    Tier Three CMP (others).....          1,035,909            1,116,140
15 U.S.C. 1639e(k):
    First violation.............             12,647               13,627
    Subsequent violations.......             25,293               27,252
31 U.S.C. 3802..................             12,537               13,508
42 U.S.C. 4012a(f)..............              2,392                2,577
------------------------------------------------------------------------


------------------------------------------------------------------------
                                        Current            Adjusted
                                    presumptive CMP     presumptive CMP
          CFR citation             (through January   (beginning January
                                       14, 2023)           15, 2023)
------------------------------------------------------------------------
12 CFR 308.132(e)(1)(i):
    Institutions with $25
     million or more in assets:
        1 to 15 days late.......  $604..............  $651.
        16 or more days late....  $1,208............  $1,302.
    Institutions with less than
     $25 million in assets:
        1 to 15 days late \17\..  $202..............  $218.
        16 or more days late      $402..............  $433.
         \18\.
12 CFR 308.132(e)(1)(ii):
    Institutions with $25
     million or more in assets:
        1 to 15 days late.......  $1,006............  $1,084.
        16 or more days late....  $2,012............  $2,168.
    Institutions with less than
     $25 million in assets:
        1 to 15 days late.......  1/50,000th of the   1/50,000th of the
                                   institution's       institution's
                                   total assets.       total assets.
        16 or more days late....  1/25,000th of the   1/25,000th of the
                                   institution's       institution's
                                   total assets.       total assets.
12 CFR 308.132(e)(2)............  $44,043...........  $47,454.
12 CFR 308.132(e)(3):
    Tier One CMP................  $4,404............  $4,745.
    Tier Two CMP................  $44,043...........  $47,454.
    Tier Three CMP \19\.........  $2,202,123........  $2,372,677.
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[[Page 863]]

Federal Deposit Insurance Corporation.
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    \6\ The maximum penalty amount is per day, unless otherwise 
indicated.
    \7\ 12 U.S.C. 1464(v) provides the maximum CMP amounts for the 
late filing of certain Call Reports. In 2012, however, the FDIC 
issued regulations that further subdivided these amounts based upon 
the size of the institution and the lateness of the filing. See 77 
FR 74573, 74576-78 (Dec. 17, 2012), codified at 12 CFR 
308.132(e)(1). These adjusted subdivided amounts are found at the 
end of this chart.
    \8\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \9\ 12 U.S.C. 1817(a) provides the maximum CMP amounts for the 
late filing of certain Call Reports. In 1991, however, the FDIC 
issued regulations that further subdivided these amounts based upon 
the size of the institution and the lateness of the filing. See 56 
FR 37968, 37992-93 (Aug. 9, 1991), codified at 12 CFR 308.132(e)(1). 
These adjusted subdivided amounts are found at the end of this 
chart.
    \10\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \11\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \12\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \13\ These amounts also apply to CMPs in statutes that cross-
reference 12 U.S.C. 1818, such as 12 U.S.C. 2601, 2804(b), 3108(b), 
3349(b), 4009(a), 4309(a), 4717(b); 15 U.S.C. 1607(a), 1681s(b), 
1691(b), 1691c(a), 1693o(a); and 42 U.S.C. 3601.
    \14\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \15\ The $148-per-day maximum CMP under 12 U.S.C. 1828(h) for 
failure or refusal to pay any assessment applies only when the 
assessment is less than $10,000. When the amount of the assessment 
is $10,000 or more, the maximum CMP under section 1828(h) is 1 
percent of the amount of the assessment for each day that the 
failure or refusal continues.
    \16\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \17\ The maximum penalty amount for an institution is the 
greater of this amount or 1/100,000th of the institution's total 
assets.
    \18\ The maximum penalty amount for an institution is the 
greater of this amount or 1/50,000th of the institution's total 
assets.
    \19\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.

    Dated at Washington, DC, on December 30, 2022.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2022-28655 Filed 1-4-23; 8:45 am]
BILLING CODE 6714-01-P


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Indexed from Federal Register on January 5, 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.