This site displays a prototype of a “Web 2.0” version of the daily Federal Register. It is not an official legal edition of the Federal Register, and does not replace the official print version or the official electronic version on GPO’s govinfo.gov.
The documents posted on this site are XML renditions of published Federal Register documents. Each document posted on the site includes a link to the corresponding official PDF file on govinfo.gov. This prototype edition of the daily Federal Register on FederalRegister.gov will remain an unofficial informational resource until the Administrative Committee of the Federal Register (ACFR) issues a regulation granting it official legal status. For complete information about, and access to, our official publications and services, go to About the Federal Register on NARA's archives.gov.
The OFR/GPO partnership is committed to presenting accurate and reliable regulatory information on FederalRegister.gov with the objective of establishing the XML-based Federal Register as an ACFR-sanctioned publication in the future. While every effort has been made to ensure that the material on FederalRegister.gov is accurately displayed, consistent with the official SGML-based PDF version on govinfo.gov, those relying on it for legal research should verify their results against an official edition of the Federal Register. Until the ACFR grants it official status, the XML rendition of the daily Federal Register on FederalRegister.gov does not provide legal notice to the public or judicial notice to the courts.
Office of the Comptroller of the Currency, Treasury.
Notification of monetary penalties 2021.
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.
The adjusted maximum amount of civil money penalties in this document are applicable to penalties assessed on or after January 1, 2021, for conduct occurring on or after November 2, 2015.
Lee Walzer, Counsel, Chief Counsel's Office, (202) 649-5490, Office of the Comptroller of the Currency.
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 OMB, by January 15 of the applicable year.
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 notification process.[4]
On December 23, 2020, the OMB issued guidance to affected agencies on implementing the required annual adjustment, which included the relevant inflation multiplier.[5] The OCC has ( printed page 86796) applied that multiplier to the maximum CMPs allowable in 2020 for national banks and Federal savings associations as listed in the 2020 CMP notification [6] to calculate the maximum amount of CMPs that may be assessed by the OCC in 2021.[7] There were no new statutory CMPs administered by the OCC during 2020.
The following charts provide the inflation-adjusted CMPs for use beginning on January 1, 2021, pursuant to 12 CFR 19.240(b) and 109.103(c)(2) for conduct occurring on or after November 2, 2015:
| U.S. Code citation | Description and tier (if applicable) | Maximum penalty amount (in dollars) 1 |
|---|---|---|
| 12 U.S.C. 93(b) | Violation of Various Provisions of the National Bank Act: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 164 | Violation of Reporting Requirements: | |
| Tier 1 | 4,146 | |
| Tier 2 | 41,463 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 481 | Refusal of Affiliate to Cooperate in Examination | 10,366 |
| 12 U.S.C. 504 | Violation of Various Provisions of the Federal Reserve Act: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 1817(j)(16) | Violation of Change in Bank Control Act: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 1818(i)(2) 3 | Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 1820(k)(6)(A)(ii) | Violation of Post-Employment Restrictions: | |
| Per violation | 341,000 | |
| 12 U.S.C. 1832(c) | Violation of Withdrawals by Negotiable or Transferable Instrument for Transfers to Third Parties: | |
| Per violation | 3,011 | |
| 12 U.S.C. 1884 | Violation of the Bank Protection Act | 301 |
| 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 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 3110(a) | Violation of Various Provisions of the International Banking Act (Federal Branches and Agencies): | 47,378 |
| 12 U.S.C. 3110(c) | Violation of Reporting Requirements of the International Banking Act (Federal Branches and Agencies): | |
| Tier 1 | 3,791 | |
| Tier 2 | 37,901 | |
| Tier 3 | 2 1,895,095 | |
| 12 U.S.C. 3909(d)(1) | Violation of International Lending Supervision Act | 2,579 |
| 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 violation | 9,753 | |
| Tier 1 (other person)—Per violation | 97,523 | |
| Tier 2 (natural person)—Per violation | 97,523 | |
| Tier 2 (other person)—Per violation | 487,616 | |
| Tier 3 (natural person)—Per violation | 195,047 | |
| Tier 3 (other person)—Per violation | 975,230 | |
| 15 U.S.C. 1639e(k) | Violation of Appraisal Independence Requirements: | |
| First violation | 11,906 | |
| Subsequent violations | 23,811 | |
| 42 U.S.C. 4012a(f)(5) | Flood Insurance: | |
| Per violation | 2,252 | |
| 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 1692 l. | ||
| U.S. Code citation | CMP description | Maximum penalty amount (in dollars) 1 |
|---|---|---|
| 12 U.S.C. 1464(v) | Reports of Condition: | |
| ( printed page 86797) | ||
| 1st Tier | 4,146 | |
| 2nd Tier | 41,463 | |
| 3rd Tier | 2 2,073,133 | |
| 12 U.S.C. 1467(d) | Refusal of Affiliate to Cooperate in Examination | 10,366 |
| 12 U.S.C. 1467a(r) | Late/Inaccurate Reports: | |
| 1st Tier | 4,146 | |
| 2nd Tier | 41,463 | |
| 3rd Tier | 2 2,073,133 | |
| 12 U.S.C. 1817(j)(16) | Violation of Change in Bank Control Act: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 1818(i)(2) 3 | Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 12 U.S.C. 1820(k)(6)(A)(ii) | Violation of Post-Employment Restrictions: | |
| Per violation | 341,000 | |
| 12 U.S.C. 1832(c) | Violation of Withdrawals by Negotiable or Transferable Instruments for Transfers to Third Parties: | |
| Per violation | 2,737 | |
| 12 U.S.C. 1884 | Violation of the Bank Protection Act | 301 |
| 12 U.S.C. 1972(2)(F) | Violation of Provisions regarding Correspondent Accounts, Unsafe or Unsound Practices, or Breach of Fiduciary Duty: | |
| Tier 1 | 10,366 | |
| Tier 2 | 51,827 | |
| Tier 3 | 2 2,073,133 | |
| 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: | |
| Tier 1 (natural person)—Per violation | 9,753 | |
| Tier 1 (other person)—Per violation | 97,523 | |
| Tier 2 (natural person)—Per violation | 97,523 | |
| Tier 2 (other person)—Per violation | 487,616 | |
| Tier 3 (natural person)—Per violation | 195,047 | |
| Tier 3 (other person)—Per violation | 975,230 | |
| 15 U.S.C. 1639e(k) | Violation of Appraisal Independence Requirements: | |
| First violation | 11,906 | |
| Subsequent violations | 23,811 | |
| 42 U.S.C. 4012a(f)(5) | Flood Insurance: | |
| Per violation | 2,252 | |
| 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 1692 l. | ||
Jonathan V. Gould,
Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller of the Currency.
1. Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at28 U.S.C. 2461 note.
Back to Citation2. Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015, 129 Stat. 599, codified at28 U.S.C. 2461 note.
Back to Citation3. 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 notification rather than a regulation.
Back to Citation4. 83 FR 1517 (Jan. 12, 2018) (final rule); 83 FR 1657 (Jan. 12, 2018) (2018 CMP Notice).
Back to Citation5. The inflation adjustment multiplier for 2021 is 1.01182 . See OMB Memorandum M-21-10, Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 23, 2020).
Back to Citation6. See 84 FR 71735 (Dec. 30, 2019).
Back to Citation7. 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.
Back to Citation[FR Doc. 2020-28942 Filed 12-30-20; 8:45 am]
BILLING CODE 4810-33-P