Rule2024-00097
Notification 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 8, 2024
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 89 Issue 5 (Monday, January 8, 2024)</title>
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[Federal Register Volume 89, Number 5 (Monday, January 8, 2024)]
[Rules and Regulations]
[Pages 872-874]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00097]
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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 2024.
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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 8,
2024 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 19, 2023, 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 2023 for national banks and Federal
savings associations as listed in the 2023 CMP notice \6\ to calculate
the maximum amount of CMPs that may be assessed by the OCC in 2024.\7\
There were no new statutory CMPs administered by the OCC during 2023.
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\5\ The inflation adjustment multiplier for 2024 is 1.03241. See
OMB Memorandum M-24-07, Implementation of Penalty Inflation
Adjustments for 2024, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023).
\6\ See 88 FR 289 (Jan. 4, 2023).
\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 8, 2024, pursuant to 12 CFR 19.240(b) and
109.103(c)(2)
[[Page 873]]
for conduct occurring on or after November 2, 2015:
Penalties Applicable to National Banks
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Maximum
penalty amount
U.S. Code citation Description and Tier (if applicable) (in dollars)
\1\
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12 U.S.C. 93(b)........................................ Violation of Various Provisions of the
National Bank Act:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 164.......................................... Violation of Reporting Requirements:
Tier 1.............................. 4,899
Tier 2.............................. 48,992
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 481.......................................... Refusal of Affiliate to Cooperate in 12,249
Examination.
12 U.S.C. 504.......................................... Violation of Various Provisions of the
Federal Reserve Act:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 1817(j)(16).................................. Violation of Change in Bank Control
Act:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 1818(i)(2) \3\............................... Violation of Law, Unsafe or Unsound
Practice, or Breach of Fiduciary Duty:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 1820(k)(6)(A)(ii)............................ Violation of Post-Employment 402,920
Restrictions: Per violation.
12 U.S.C. 1832(c)...................................... Violation of Withdrawals by Negotiable 3,558
or Transferable Instrument for
Transfers to Third Parties: Per
violation.
12 U.S.C. 1884......................................... Violation of the Bank Protection Act... 356
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.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 3110(a)...................................... Violation of Various Provisions of the 55,981
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.............................. 4,480
Tier 2.............................. 44,783
Tier 3.............................. \2\ 2,239,210
12 U.S.C. 3909(d)(1)................................... Violation of International Lending 3,047
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 person)--Per 11,524
violation.
Tier 1 (other person)--Per violation 115,231
Tier 2 (natural person)--Per 115,231
violation.
Tier 2 (other person)--Per violation 576,158
Tier 3 (natural person)--Per 230,464
violation.
Tier 3 (other person)--Per violation 1,152,314
15 U.S.C. 1639e(k)..................................... Violation of Appraisal Independence
Requirements:
First violation..................... 14,069
Subsequent violations............... 28,135
42 U.S.C. 4012a(f)(5).................................. Flood Insurance: Per violation......... 2,661
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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
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Maximum
penalty amount
U.S. Code citation CMP description (in dollars)
\8\
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12 U.S.C. 1464(v)...................................... Reports of Condition:
1st Tier............................ 4,899
2nd Tier............................ 48,992
3rd Tier............................ \2\ 2,449,575
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12 U.S.C. 1467(d)...................................... Refusal of Affiliate to Cooperate in 12,249
Examination.
12 U.S.C. 1467a(r)..................................... Late/Inaccurate Reports:
1st Tier............................ 4,899
2nd Tier............................ 48,992
3rd Tier............................ \2\ 2,449,575
712 U.S.C. 1817(j)(16)................................. Violation of Change in Bank Control
Act:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 1818(i)(2) \3\............................... Violation of Law, Unsafe or Unsound
Practice, or Breach of Fiduciary Duty:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
12 U.S.C. 1820(k)(6)(A)(ii)............................ Violation of Post-Employment 402,920
Restrictions: Per violation.
12 U.S.C. 1832(c)...................................... Violation of Withdrawals by Negotiable 3,234
or Transferable Instruments for
Transfers to Third Parties: Per
violation.
12 U.S.C. 1884......................................... Violation of the Bank Protection Act... 356
12 U.S.C. 1972(2)(F)................................... Violation of Provisions regarding
Correspondent Accounts, Unsafe or
Unsound Practices, or Breach of
Fiduciary Duty:
Tier 1.............................. 12,249
Tier 2.............................. 61,238
Tier 3.............................. \2\ 2,449,575
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 person)--Per 11,524
violation.
1st Tier (other person)--Per 115,231
violation.
2nd Tier (natural person)--Per 115,231
violation.
2nd Tier (other person)--Per 576,158
violation.
3rd Tier (natural person)--Per 230,464
violation.
3rd Tier (other person)--Per 1,152,314
violation.
15 U.S.C. 1639e(k)..................................... Violation of Appraisal Independence
Requirements:
First violation..................... 14,069
Subsequent violations............... 28,135
42 U.S.C. 4012a(f)(5).................................. Flood Insurance: Per violation......... 2,661
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\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.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2024-00097 Filed 1-5-24; 8:45 am]
BILLING CODE 4810-33-P
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</html>Indexed from Federal Register on January 8, 2024.
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