Notice2025-11691

Guidance on Referrals for Potential Criminal Enforcement

Primary source

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Published
June 25, 2025

Issuing agencies

Federal Deposit Insurance Corporation

Abstract

This document describes the Federal Deposit Insurance Corporation's (FDIC) plans to address criminally liable regulatory offenses under the recent executive order on fighting overcriminalization in Federal regulations.

Full Text

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<title>Federal Register, Volume 90 Issue 120 (Wednesday, June 25, 2025)</title>
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[Federal Register Volume 90, Number 120 (Wednesday, June 25, 2025)]
[Notices]
[Page 27017]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11691]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Guidance on Referrals for Potential Criminal Enforcement

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of general policy.

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SUMMARY: This document describes the Federal Deposit Insurance 
Corporation's (FDIC) plans to address criminally liable regulatory 
offenses under the recent executive order on fighting 
overcriminalization in Federal regulations.

FOR FURTHER INFORMATION CONTACT: Andrew Kim, Senior Attorney, 1776 F 
St. NW, F-2016, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: On May 9, 2025, the President issued 
Executive Order (E.O.) 14294, Fighting Overcriminalization in Federal 
Regulations (90 FR 20363; May 14, 2025). Section 7 of E.O. 14294 
provides that within 45 days of the order, and in consultation with the 
Attorney General, each agency should publish guidance in the Federal 
Register describing its plan to address criminally liable regulatory 
offenses.
    Consistent with that requirement, the FDIC advises the public that 
by May 9, 2026, the agency, in consultation with the Attorney General, 
will provide to the Director of the Office of Management and Budget 
(OMB) a report containing (1) a list of all criminal regulatory 
offenses \1\ enforceable by the FDIC or the Department of Justice 
(DOJ); and (2) for each such criminal regulatory offense, the range of 
potential criminal penalties for a violation and the applicable mens 
rea standard \2\ for the criminal regulatory offense.
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    \1\ ``Criminal regulatory offense'' means a Federal regulation 
that is enforceable by a criminal penalty. E.O. 14294, sec. 3(b).
    \2\ ``Mens rea'' means the state of mind that by law must be 
proven to convict a particular defendant of a particular crime. E.O. 
14294, sec. 3(c).
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    As a practical matter, the FDIC does not generally make referrals 
of criminal regulatory offenses to the DOJ. To the extent that 
information is uncovered during the agency's supervisory activities 
that could suggest potential violations of criminal laws, the FDIC's 
practice is to refer such information to the Office of the Inspector 
General for the FDIC (FDIC-OIG). The FDIC-OIG then evaluates the 
information and determines whether a criminal referral to DOJ may be 
warranted. Where warranted, the FDIC-OIG's office makes referrals to 
DOJ based upon violations of Federal criminal statutes; the FDIC is not 
aware of the FDIC-OIG having made any referral to DOJ based upon a 
criminal regulatory offense in the past 10 years. Nonetheless, the FDIC 
commits to establishing procedures consistent with the E.O. for any 
future referral to DOJ involving a potential criminal regulatory 
offense.
    This document announces a general policy, subject to appropriate 
exceptions and to the extent consistent with law, that when the FDIC is 
deciding whether to refer alleged violations of criminal regulatory 
offenses to DOJ, officers and employees of the FDIC should consider the 
following factors:
    <bullet> the harm or risk of harm, pecuniary or otherwise, caused 
by the alleged offense;
    <bullet> the potential gain to the putative defendant that could 
result from the offense;
    <bullet> whether the putative defendant held specialized knowledge 
or expertise, or was licensed in an industry related to the rule or 
regulation at issue; and
    <bullet> evidence, if any is available, of the putative defendant's 
general awareness of the unlawfulness of his conduct as well as his 
knowledge or lack thereof of the regulation at issue.
    This general policy is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law or in 
equity by any party against the United States, its departments, 
agencies, or entities, its officers, employees, or agents, or any other 
person.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on June 23, 2025.
Matthew P. Reed,
Acting General Counsel.
[FR Doc. 2025-11691 Filed 6-24-25; 8:45 am]
BILLING CODE 6714-01-P


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Indexed from Federal Register on June 25, 2025.

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.