[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Rules and Regulations]
[Pages 71735-71737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28053]
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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 2020.
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SUMMARY: The Office of the Comptroller of the Currency (OCC) is
providing notice of its 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 1,
2020, for conduct occurring on or after November 2, 2015.
FOR FURTHER INFORMATION CONTACT: Lee Walzer, Counsel, Chief Counsel's
Office, (202) 649-5490, or, for persons who are deaf or hearing
impaired, TTY, (202) 649-5597, 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
[[Page 71736]]
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. The agencies are required to publish their CMPs,
adjusted pursuant to the multiplier provided by 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 has codified a CMP amount in its
regulations, the agency would need to update that amount by regulation.
However, if an agency has codified the formula for making the CMP
adjustments, then subsequent adjustments can be made solely by
notice.\3\ In 2018, the OCC published a final regulation to remove the
CMP amounts from its regulations, while updating those 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 16, 2019, 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 2019 for national banks and Federal
savings associations as listed in the 2019 CMP notice \6\ to calculate
the maximum amount of CMPs that may be assessed by the OCC in 2020.\7\
There were no new statutory CMPs administered by the OCC during 2019.
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\5\ The inflation adjustment multiplier for 2020 is 1.01764. See
OMB Memorandum M-20-05, Implementation of Penalty Inflation
Adjustments for 2020, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Dec. 16, 2019).
\6\ See 83 FR 66599 (Dec. 27, 2018).
\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 1, 2020, 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.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 164.................. Violation of Reporting
Requirements:
Tier 1.............. 4,098
Tier 2.............. 40,979
Tier 3.............. \2\ 2,048,915
12 U.S.C. 481.................. Refusal of Affiliate to 10,245
Cooperate in
Examination.
12 U.S.C. 504.................. Violation of Various
Provisions of the
Federal Reserve Act:
Tier 1.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 1817(j)(16).......... Violation of Change in
Bank Control Act:
Tier 1.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 1818(i)(2) \3\....... Violation of Law,
Unsafe or Unsound
Practice, or Breach of
Fiduciary Duty:
Tier 1.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 1820(k)(6)(A)(ii).... Violation of Post-
Employment
Restrictions:
Per violation....... 337,016
12 U.S.C. 1832(c).............. Violation of
Withdrawals by
Negotiable or
Transferable
Instrument for
Transfers to Third
Parties:
Per violation....... 2,976
12 U.S.C. 1884................. Violation of the Bank 297
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.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 3110(a).............. Violation of Various 46,825
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.............. 3,747
Tier 2.............. 37,458
Tier 3.............. \2\ 1,872,957
12 U.S.C. 3909(d)(1)........... Violation of 2,549
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 9,639
person)--Per
violation.
Tier 1 (other 96,384
person)--Per
violation.
Tier 2 (natural 96,384
person)--Per
violation.
Tier 2 (other 481,920
person)--Per
violation.
Tier 3 (natural 192,768
person)--Per
violation.
Tier 3 (other 963,837
person)--Per
violation.
15 U.S.C. 1639e(k)............. Violation of Appraisal
Independence
Requirements:
First violation..... 11,767
Subsequent 23,533
violations.
[[Page 71737]]
42 U.S.C. 4012a(f)(5).......... Flood Insurance:
Per violation....... 2,226
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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)
\1\
------------------------------------------------------------------------
12 U.S.C. 1464(v).............. Reports of Condition:
1st Tier............ 4,098
2nd Tier............ 40,979
3rd Tier............ \2\ 2,048,915
12 U.S.C. 1467(d).............. Refusal of Affiliate to 10,245
Cooperate in
Examination.
12 U.S.C. 1467a(r)............. Late/Inaccurate
Reports:
1st Tier............ 4,098
2nd Tier............ 40,979
3rd Tier............ \2\ 2,048,915
12 U.S.C. 1817(j)(16).......... Violation of Change in
Bank Control Act:
Tier 1.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 1818(i)(2) \3\....... Violation of Law,
Unsafe or Unsound
Practice, or Breach of
Fiduciary Duty:
Tier 1.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
12 U.S.C. 1820(k)(6)(A)(ii).... Violation of Post-
Employment
Restrictions:
Per violation....... 337,016
12 U.S.C. 1832(c).............. Violation of
Withdrawals by
Negotiable or
Transferable
Instruments for
Transfers to Third
Parties:
Per violation....... 2,705
12 U.S.C. 1884................. Violation of the Bank 297
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.............. 10,245
Tier 2.............. 51,222
Tier 3.............. \2\ 2,048,915
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 9,639
person)--Per
violation.
1st Tier (other 96,384
person)--Per
violation.
2nd Tier (natural 96,384
person)--Per
violation.
2nd Tier (other 481,920
person)--Per
violation.
3rd Tier (natural 192,768
person)--Per
violation.
3rd Tier (other 963,837
person)--Per
violation.
15 U.S.C. 1639e(k)............. Violation of Appraisal
Independence
Requirements:
First violation..... 11,767
Subsequent 23,533
violations.
42 U.S.C. 4012a(f)(5).......... Flood Insurance:
Per violation....... 2,226
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\1\ 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.
Dated: December 19, 2019.
Jonathan V. Gould,
Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller
of the Currency.
[FR Doc. 2019-28053 Filed 12-27-19; 8:45 am]
BILLING CODE 4810-33-P