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Rule

Inflation Adjustment of Civil Monetary Penalties

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Start Preamble

AGENCY:

Departmental Offices, Financial Crimes Enforcement Network, and Office of Foreign Assets Control, Treasury.

ACTION:

Final rule.

SUMMARY:

The Department of the Treasury (“Department” or “Treasury”) publishes this final rule to adjust its civil monetary penalties (“CMPs”) for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as “the Act”). This rule adjusts CMPs within the jurisdiction of certain components of the Department to the maximum amount required by the Act.

DATES:

Effective March 19, 2018.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

For information regarding the Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, Room 1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220, at (202) 622-2922 (not a toll-free number), Kevin Meehan, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, at (202) 622-7009 (not a toll-free number), or Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, at (202) 622-3220 (not a toll free number). Persons who have difficulty hearing or speaking may access these numbers via TTY by calling the toll-free Federal Relay Service at (800) 877-8339.

For information regarding Financial Crimes Enforcement Network's CMPs, contact the FinCEN Resource Center at (800) 767-2825 or email frc@fincen.gov.

For information regarding the Office of Foreign Assets Control's CMPs, contact the Assistant Director for Enforcement, tel.: 202-622-2430; Start Printed Page 11877Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

I. Background

In order to improve the effectiveness of CMPs and to maintain their deterrent effect, the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note (“the Inflation Adjustment Act”), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74) (“the 2015 Act”), requires Federal agencies to adjust each CMP provided by law within the jurisdiction of the agency. The 2015 Act requires agencies to adjust the level of CMPs with an initial “catch-up” adjustment through an interim final rulemaking and to make subsequent annual adjustments for inflation, without needing to provide notice and the opportunity for public comment required by 5 U.S.C. 553. The Department's initial catch-up adjustment interim final rules were published on June 30, 2016 (FinCEN) (81 FR 42503), July 1, 2016 (OFAC) (81 FR 43070), and December 7, 2016 (Departmental Offices) (81 FR 88600). The Department's 2017 annual adjustment was published on February 10, 2017 (82 FR 10434). The 2015 Act provides that any increase in a CMP shall apply to CMPs that are assessed after the date the increase takes effect, regardless of whether the underlying violation predated such increase.[1]

II. Method of Calculation

The method of calculating CMP adjustments applied in this final rule is required by the 2015 Act. Under the 2015 Act and the Office of Management and Budget guidance required by the 2015 Act, annual inflation adjustments subsequent to the initial catch-up adjustment are to be based on the percent change between the Consumer Price Index for all Urban Consumers (“CPI-U”) for the October preceding the date of the adjustment and the prior year's October CPI-U. As set forth in Office of Management and Budget Memorandum M-18-03 of December 15, 2017, the adjustment multiplier for 2018 is 1.02041. In order to complete the 2018 annual adjustment, each current CMP is multiplied by the 2018 adjustment multiplier. Under the 2015 Act, any increase in CMP must be rounded to the nearest multiple of $1.

Procedural Matters

1. Administrative Procedure Act

The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to make annual adjustments for inflation to CMPs, without needing to provide notice and the opportunity for public comment required by 5 U.S.C. 553. Additionally, the methodology used, effective 2017, for adjusting CMPs for inflation is provided by statute, with no discretion provided to agencies regarding the substance of the adjustments for inflation to CMPs. The Department is charged only with performing ministerial computations to determine the dollar amount of adjustments for inflation to CMPs. Accordingly, prior public notice and an opportunity for public comment and a delayed effective date are not required for this rule.

2. Regulatory Flexibility Act

Because no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply.

3. Executive Order 12866

This rule is not a significant regulatory action as defined in section 3.f of Executive Order 12866.

4. Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this rule because there are no new or revised recordkeeping or reporting requirements.

Start List of Subjects

List of Subjects

31 CFR Part 50

  • Insurance
  • Terrorism

31 CFR Parts 501, 535, 536, 538, 539, 541, 542, 544, 546, 547, 548, 549, 560, 561, 566, 576, 584, 588, 592, 594, 595, 597, and 598

  • Administrative practice and procedure
  • Banks
  • Banking
  • Blocking of assets
  • Exports
  • Foreign trade
  • Licensing
  • Penalties
  • Sanctions

31 CFR Part 1010

  • Authority delegations (Government agencies)
  • Banks and banking
  • Currency
  • Investigations
  • Law enforcement
  • Reporting and recordkeeping requirements
End List of Subjects

Authority and Issuance

For the reasons set forth in the preamble, part 50, chapter V, and part 1010 of title 31 of the Code of Federal Regulations are amended as follows:

Start Part

PART 50—TERRORISM RISK INSURANCE PROGRAM

End Part Start Amendment Part

1. The authority citation for part 50 continues to read as follows:

End Amendment Part Start Authority

Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-297, 116 Stat. 2322, as amended by Pub. L. 109-144, 119 Stat. 2660, Pub. L. 110-160, 121 Stat. 1839 and Pub. L. 114-1, 129 Stat. 3 (15 U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601, Title VII (28 U.S.C. 2461 note).

End Authority Start Amendment Part

2. Amend § 50.83 by revising paragraph (a) to read as follows:

End Amendment Part
Adjustment of civil monetary penalty amount.

(a) Inflation adjustment. Any penalty under the Act and these regulations may not exceed the greater of $1,360,525 and, in the case of any failure to pay, charge, collect or remit amounts in accordance with the Act or these regulations such amount in dispute.

* * * * *
Start Part

PART 501—REPORTING, PROCEDURES AND PENALTIES REGULATIONS

End Part Start Amendment Part

3. The authority citation for part 501 continues to read as follows:

End Amendment Part Start Authority

Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a), 6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706; 50 U.S.C. App. 1-44.

End Authority

Subpart D—Trading With the Enemy Act (TWEA) Penalties

[Amended]
Start Amendment Part

4. Amend § 501.701 as follows:

End Amendment Part Start Amendment Part

a. In the note to paragraph (a)(1), remove “As of January 15, 2017,” ; and remove “$85,236” and add in its place “$86,976”.

End Amendment Part Start Amendment Part

b. In paragraph (a)(3), remove “$85,236” and add in its place “$86,976”.

End Amendment Part Start Amendment Part

5. Amend appendix A to part 501 as follows:

End Amendment Part Start Amendment Part

a. In section V.B.2.a.i., remove “$144,619” and add in its place “$147,571”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Amendment Part

b. In section V.B.2.a.ii., remove “$289,238” in all three locations where it appears, and add in its place in all three locations “$295,141”. Start Printed Page 11878

End Amendment Part Start Amendment Part

c. Revise the note to paragraph (a) of section V.B.2.a. to read as follows:

End Amendment Part

Appendix A to Part 501—Economic Sanctions Enforcement Guidelines

* * * * *

B. * * *

2. * * *

a. * * *

Note to paragraph (a): The applicable statutory maximum civil penalty per violation for each statute enforced by OFAC is as follows: International Emergency Economic Powers Act (IEEPA)—greater of $295,141 or twice the amount of the underlying transaction; Trading with the Enemy Act (TWEA)—$86,976; Foreign Narcotics Kingpin Designation Act (FNKDA)—$1,466,485; Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA)—greater of $77,909 or twice the amount of which a financial institution was required to retain possession or control; and Clean Diamond Trade Act (CDTA)—$13,333. The civil penalty amounts authorized under these statutes are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

The following matrix represents the base amount of the proposed civil penalty for each category of violation:

Start Part

PART 535—IRANIAN ASSETS CONTROL REGULATIONS

End Part Start Amendment Part

6. The authority citation for part 535 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12170, 44 FR 65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279, 46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp., p. 112; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

7. In the note to paragraph (a)(1) in § 535.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 536—NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

End Part Start Amendment Part

8. The authority citation for part 536 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

9. In the note to paragraph (a)(1) in § 536.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 538—SUDANESE SANCTIONS REGULATIONS

End Part Start Amendment Part

10. The authority citation for part 538 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120 Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71 FR 61369, 3 CFR, 2006 Comp., p. 244.

End Authority Start Printed Page 11879

Subpart G—Penalties

[Amended]
Start Amendment Part

11. In the note to paragraph (a)(1) in § 538.701 , remove “As of January 15, 2017” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 539—WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS

End Part Start Amendment Part

12. The authority citation for part 539 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

13. In the note to paragraph (a)(1) in § 539.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 541—ZIMBABWE SANCTIONS REGULATIONS

End Part Start Amendment Part

14. The authority citation for part 541 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13288, 68 FR 11457, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 FR 71201, 3 CFR, 2005 Comp., p. 206; E.O. 13469, 73 FR 43841, 3 CFR, 2008 Comp., p. 1025.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

15. In the note to paragraph (a)(1) in § 541.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 542—SYRIAN SANCTIONS REGULATIONS

End Part Start Amendment Part

16. The authority citation for part 542 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1701 note); E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp., p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O. 13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; E.O. 13573, 76 FR 29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 52209, 3 CFR 2011 Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 Comp., p. 243.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

17. In the note to paragraph (a)(1) in § 542.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 544—WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS REGULATIONS

End Part Start Amendment Part

18. The authority citation for part 544 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Public Law 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200; E.O. 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. 170.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

19. In the note to paragraph (a)(1) in § 544.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 546—DARFUR SANCTIONS REGULATIONS

End Part Start Amendment Part

20. The authority citation for part 546 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13400, 71 FR 25483, 3 CFR, 2006 Comp., p. 220.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

21. In the note to paragraph (a)(1) in § 546.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 547—DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS

End Part Start Amendment Part

22. The authority citation for part 547 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13413, 71 FR 64105, 3 CFR, 2006 Comp., p. 247.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

23. In the note to paragraph (a)(1) in § 547.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 548—BELARUS SANCTIONS REGULATIONS

End Part Start Amendment Part

24. The authority citation for part 548 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13405, 71 FR 35485; 3 CFR, 2007 Comp., p. 231.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

25. In the note to paragraph (a)(1) in § 548.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 549—LEBANON SANCTIONS REGULATIONS

End Part Start Amendment Part

26. The authority citation for part 549 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13441, 72 FR 43499, 3 CFR, 2008 Comp., p. 232.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

27. In the note to paragraph (a)(1) in § 549.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 560—IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

End Part Start Amendment Part

28. The authority citation for part 560 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., p. Start Printed Page 11880215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., p. 314.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

29. In the note to paragraph (a)(1) in § 560.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 561—IRANIAN FINANCIAL SANCTIONS REGULATIONS

End Part Start Amendment Part

30. The authority citation for part 561 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR 6659, February 8, 2012; E.O. 13622, 77 FR 45897, August 2, 2012; E.O. 13628, 77 FR 62139, October 12, 2012.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

31. In the note to paragraph (a) in § 561.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 566—HIZBALLAH FINANCIAL SANCTIONS REGULATIONS

End Part Start Amendment Part

32. The authority citation for part 566 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-102.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

33. In the note to paragraph (a) in § 566.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 576—IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS

End Part Start Amendment Part

34. The authority citation for part 576 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 110-96, 121 Stat. 1011; E.O. 13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. 13315, 68 FR 52315, 3 CFR, 2003 Comp., p. 252; E.O. 13350, 69 FR 46055, 3 CFR, 2004 Comp., p. 196; E.O. 13364, 69 FR 70177, 3 CFR, 2004 Comp., p. 236; E.O. 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 224; E.O. 13668, 79 FR 31019, 3 CFR, 2014 Comp., p. 248.

End Authority

Subpart G—Penalties

Start Amendment Part

35. In the note to paragraph (a)(1) in§ 576.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 584—MAGNITSKY ACT SANCTIONS REGULATIONS

End Part Start Amendment Part

36. The authority citation for part 584 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 112-208, 126 Stat. 1502, (22 U.S.C. 5811 note).

End Authority
[Amended]
Start Amendment Part

37. In the note to paragraph (a)(1) in § 584.701, remove “As of December 21, 2017,”; and remove “$239,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 588—WESTERN BALKANS STABILIZATION REGULATIONS

End Part Start Amendment Part

38. The authority citation for part 588 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13219, 66 FR 34777, 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR, 2004 Comp. p. 229.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

39. In the note to paragraph (a)(1) in § 588.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 592—ROUGH DIAMONDS CONTROL REGULATIONS

End Part Start Amendment Part

40. The authority citation for part 592 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); Pub. L. 108-19, 117 Stat. 631 (19 U.S.C. 3901-3913); E.O. 13312, 68 FR 45151 3 CFR, 2003 Comp., p. 246.

End Authority

Subpart F—Penalties

[Amended]
Start Amendment Part

41. In the note to paragraph (a)(1) in § 592.601, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$13,066” and add in its place “$13,333”.

End Amendment Part Start Part

PART 594—GLOBAL TERRORISM SANCTIONS REGULATIONS

End Part Start Amendment Part

42. The authority citation for part 594 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; Pub. L. 115-44, 131 Stat. 886 (22 U.S.C. 9401 et seq.), E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

43. In the note to paragraph (a)(1) in § 594.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 595—TERRORISM SANCTIONS REGULATIONS

End Part Start Amendment Part

44. The authority citation for part 595 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

45. In the note to paragraph (a)(1) in § 595.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$289,238” and add in its place “$295,141”.

End Amendment Part Start Part

PART 597—FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS

End Part Start Amendment Part

46. The authority citation for part 597 continues to read as follows:

End Amendment Part Start Authority

Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 U.S.C. 1189, 18 U.S.C. 2339B).

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

47. In the note to paragraph (b) in § 597.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$76,351” and add in its place “$77,909”.

End Amendment Part Start Part Start Printed Page 11881

PART 598—FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS

End Part Start Amendment Part

48. The authority citation for part 598 continues to read as follows:

End Amendment Part Start Authority

Authority: 3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).

End Authority

Subpart G—Penalties

[Amended]
Start Amendment Part

49. In the note to paragraph (a)(3) in § 598.701, remove “As of January 15, 2017, the” and add in its place “The”, and remove “$1,437,153” and add in its place “$1,466,485”.

End Amendment Part Start Part

PART 1010—GENERAL PROVISIONS

End Part Start Amendment Part

50. The authority citation for part 1010 continues to read as follows:

End Amendment Part Start Authority

Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 and 5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; sec. 701. Pub. L. 114-74, 129 Stat. 599.

End Authority Start Amendment Part

51. Amend § 1010.821 by revising Table 1 of § 1010.821 to read as follows:

End Amendment Part
Penalty adjustment and table.
* * * * *

(b) * * *

Table 1 of § 1010.821—Penalty Adjustment Table

U.S. Code citationCivil monetary penalty descriptionPenalties as last amended by statuteNew maximum penalty amounts or range of minimum and maximum penalty amounts for penalties assessed after 8/1/2016 but before 1/16/2017New maximum penalty amounts or range of minimum and maximum penalty amounts for penalties assessed after 1/15/2017
12 U.S.C. 1829b(j)Relating to Recordkeeping Violations For Funds Transfers$10,000$20,111$20,521
12 U.S.C. 1955Willful or Grossly Negligent Recordkeeping Violations10,00020,11120,521
31 U.S.C. 5318(k)(3)(C)Failure to Terminate Correspondent Relationship with Foreign Bank10,00013,60313,881
31 U.S.C. 5321(a)(1)General Civil Penalty Provision for Willful Violations of Bank Secrecy Act Requirements25,000-100,00054,789-219,15655,907-223,629
31 U.S.C. 5321(a)(5)(B)(i).Foreign Financial Agency Transaction—Non-Willful Violation of Transaction10,00012,66312,921
31 U.S.C. 5321(a)(5)(C)Foreign Financial Agency Transaction—Willful Violation of Transaction100,000126,626129,210
31 U.S.C. 5321(a)(6)(A)Negligent Violation by Financial Institution or Non-Financial Trade or Business5001,0961,118
31 U.S.C. 5321(a)(6)(B)Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business50,00085,23686,976
31 U.S.C. 5321(a)(7)Violation of Certain Due Diligence Requirements, Prohibition on Correspondent Accounts for Shell Banks, and Special Measures1,000,0001,360,3171,388,081
31 U.S.C. 5330(e)Civil Penalty for Failure to Register as Money Transmitting Business5,0008,0848,249
Start Signature

Ryan Brady,

Executive Secretary.

End Signature End Supplemental Information

Footnotes

1.  However, the increased CMPs apply only with respect to underlying violations occurring after the date of enactment of the 2015 Act, i.e., after November 2, 2015.

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[FR Doc. 2018-05550 Filed 3-16-18; 8:45 am]

BILLING CODE 4810-35-P