Notice2024-00409
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 11, 2024
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 89 Issue 8 (Thursday, January 11, 2024)</title>
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[Federal Register Volume 89, Number 8 (Thursday, January 11, 2024)]
[Notices]
[Pages 1917-1919]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00409]
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FEDERAL DEPOSIT INSURANCE CORPORATION
RIN 3064-ZA40
Notice of Inflation Adjustments for Civil Money Penalties
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Notice of monetary penalties 2024.
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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, 2024, 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#432431262b312a240325272a206d242c35"><span class="__cf_email__" data-cfemail="107762757862797750767479733e777f66">[email 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
[[Page 1918]]
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-24-07, Implementation of Penalty Inflation
Adjustments for 2024, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 4 (Dec. 19, 2023),
<a href="https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.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 19, 2023, 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 2023 for FDIC-supervised
institutions and other parties subject to the FDIC's jurisdiction to
calculate the maximum amount of CMPs that may be assessed by the FDIC
in 2024.\5\ There were no new statutory CMPs administered by the FDIC
during 2023.
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\4\ See OMB Guidance at 1 (providing an inflation multiplier of
1.03241).
\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, 2024--the effective date of the 2024
annual adjustments--under 12 CFR part 308, for conduct occurring on or
after November 2, 2015:
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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 $153-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.
Maximum Civil Money Penalty Amounts
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Current maximum Adjusted maximum CMP
U.S. Code citation CMP (through \6\ (beginning
January 14, 2024) January 15, 2024)
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12 U.S.C. 1464(v):
Tier One CMP \7\........... $4,745 $4,899
Tier Two CMP............... 47,454 48,992
Tier Three CMP \8\......... 2,372,677 2,449,575
12 U.S.C. 1467(d).............. 11,864 12,249
12 U.S.C. 1817(a):
Tier One CMP \9\........... 4,745 4,899
Tier Two CMP............... 47,454 48,992
Tier Three CMP \10\........ 2,372,677 2,449,575
12 U.S.C. 1817(c):
Tier One CMP............... 4,339 4,480
Tier Two CMP............... 43,377 44,783
Tier Three CMP \11\........ 2,168,915 2,239,210
12 U.S.C. 1817(j)(16):
Tier One CMP............... 11,864 12,249
Tier Two CMP............... 59,316 61,238
Tier Three CMP \12\........ 2,372,677 2,449,575
12 U.S.C. 1818(i)(2): \13\
Tier One CMP............... 11,864 12,249
Tier Two CMP............... 59,316 61,238
Tier Three CMP \14\........ 2,372,677 2,449,575
12 U.S.C. 1820(e)(4)........... 10,846 11,198
12 U.S.C. 1820(k)(6)........... 390,271 402,920
12 U.S.C. 1828(a)(3)........... 148 153
12 U.S.C. 1828(h): \15\
For assessments <$10,000... 148 153
12 U.S.C. 1829b(j)............. 24,793 25,597
12 U.S.C. 1832(c).............. 3,446 3,558
12 U.S.C. 1884................. 345 356
12 U.S.C. 1972(2)(F):
Tier One CMP............... 11,864 12,249
Tier Two CMP............... 59,316 61,238
Tier Three CMP \16\........ 2,372,677 2,449,575
12 U.S.C. 3909(d).............. 2,951 3,047
15 U.S.C. 78u-2:
Tier One CMP (individuals). 11,162 11,524
[[Page 1919]]
Tier One CMP (others)...... 111,614 115,231
Tier Two CMP (individuals). 111,614 115,231
Tier Two CMP (others)...... 558,071 576,158
Tier Three CMP 223,229 230,464
(individuals).............
Tier Three CMP (others).... 1,116,140 1,152,314
15 U.S.C. 1639e(k):
First violation............ 13,627 14,069
Subsequent violations...... 27,252 28,135
31 U.S.C. 3802................. 13,508 13,946
42 U.S.C. 4012a(f)............. 2,577 2,661
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Current Adjusted
presumptive CMP presumptive CMP
CFR citation (through January (beginning January
14, 2024) 15, 2024)
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12 CFR 308.132(e)(1)(i):
Institutions with $25
million or more in assets.
1 to 15 days late....... $651.............. $672.
16 or more days late.... 1,302............. 1,344.
Institutions with less than
$25 million in assets.
1 to 15 days late \17\.. 218............... 225.
16 or more days late 433............... 447.
\18\.
12 CFR 308.132(e)(1)(ii):
Institutions with $25
million or more in assets.
1 to 15 days late....... 1,084............. 1,119.
16 or more days late.... 2,168............. 2,238.
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)............ 47,454............ 48,992.
12 CFR 308.132(e)(3):
Tier One CMP................ 4,745............. 4,899.
Tier Two CMP................ 47,454............ 48,992.
Tier Three CMP \19\......... 2,372,677......... 2,449,575.
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Federal Deposit Insurance Corporation.
Dated at Washington, DC, on January 8, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-00409 Filed 1-10-24; 8:45 am]
BILLING CODE 6714-01-P
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</html>Indexed from Federal Register on January 11, 2024.
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.