66596 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 

1Public Law 101–410, 104 Stat. 890 (codified at 

28 U.S.C. 2461 note), amended by Debt Collection 

Improvement Act of 1996, Public Law 104–134, sec. 

31001(s)(1), 110 Stat. 1321, 1321–373; Federal 

Reports Elimination Act of 1998, Public Law 105– 

362, sec. 1301, 112 Stat. 3280. 

2Public Law 114–74, sec. 701, 129 Stat. 584, 599. 

3 Inflation Adjustment Act sec. 3(2). 

4 Inflation Adjustment Act sec. 4(a). 

5See Inflation Adjustment Act sec. 7(a) (requiring 

OMB to ‘‘issue guidance to agencies on 

implementing the inflation adjustments required 

under this Act’’); see also Memorandum from Mick 

Mulvaney, Director, Office of Management and 

Budget, to Heads of Executive Departments and 

Agencies, M–19–04 (Dec. 14, 2018), https://

www.whitehouse.gov/wp-content/uploads/2017/11/ 

m_19_04.pdf (‘‘OMB Memorandum’’). 

6 Inflation Adjustment Act sec. 5. 

7 Inflation Adjustment Act sec. 4(b)(2). 

8See, e.g., Asiana Airlines v. FAA, 134 F.3d 393, 

396–99 (DC Cir. 1998) (finding APA ‘‘notice and 

comment’’ requirement not applicable where 

Congress clearly expressed intent to depart from 

normal APA procedures). 

9 Inflation Adjustment Act sec. 6. 

10The COLA ratio must be applied to the most 

recent civil monetary penalties. Inflation 

Adjustment Act, sec. 4(a); see also OMB 

Memorandum at 2. 

11The Inflation Adjustment Act, sec. 3, uses the 

CPI ‘‘for all-urban consumers published by the 

Department of Labor.’’ 

12 Inflation Adjustment Act, sec. 5(b)(1). 

13 Inflation Adjustment Act, sec. 5(a), (b)(1). 

14OMB Memorandum at 1. 

(1) * * * 

(iv) A statement that indicates 

whether such expenditure was in 

support of, or in opposition to a 

candidate, together with the candidate’s 

name and office sought; if the 

expenditure meets the criteria set forth 

in 11 CFR 104.3(b)(3)(vii)(C), memo text 

must be used to indicate the states in 

which the communication is 

distributed, as prescribed in that 

section; 

* * * * * 

On behalf of the Commission. 

Dated: December 18, 2018. 

Caroline C. Hunter, 

Chair, Federal Election Commission. 

[FR Doc. 2018–27800 Filed 12–26–18; 8:45 am] 

BILLING CODE 6715–01–P 

FEDERAL ELECTION COMMISSION 

11 CFR Part 111 

[Notice 2018–18] 

Civil Monetary Penalties Annual 

Inflation Adjustments 

AGENCY: Federal Election Commission. 

ACTION: Final rules. 

SUMMARY: As required by the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990, the Federal Election 

Commission is adjusting for inflation 

the civil monetary penalties established 

under the Federal Election Campaign 

Act, the Presidential Election Campaign 

Fund Act, and the Presidential Primary 

Matching Payment Account Act. The 

civil monetary penalties being adjusted 

are those negotiated by the Commission 

or imposed by a court for certain 

statutory violations, and those imposed 

by the Commission for late filing of or 

failure to file certain reports required by 

the Federal Election Campaign Act. The 

adjusted civil monetary penalties are 

calculated according to a statutory 

formula and the adjusted amounts will 

apply to penalties assessed after the 

effective date of these rules. 

DATES: The final rules are effective on 

January 1, 2019. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Robert M. Knop, Assistant General 

Counsel, or Mr. Joseph P. Wenzinger, 

Attorney, Office of General Counsel, 

(202) 694–1650 or (800) 424–9530. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the ‘‘Inflation 

Adjustment Act’’),1 as amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (the ‘‘2015 Act’’),2 requires federal 

agencies, including the Commission, to 

adjust for inflation the civil monetary 

penalties within their jurisdiction 

according to prescribed formulas. A 

civil monetary penalty is ‘‘any penalty, 

fine, or other sanction’’ that (1) ‘‘is for 

a specific monetary amount’’ or ‘‘has a 

maximum amount’’ under federal law; 

and (2) that a federal agency assesses or 

enforces ‘‘pursuant to an administrative 

proceeding or a civil action’’ in federal 

court.3 Under the Federal Election 

Campaign Act, 52 U.S.C. 30101–45 

(‘‘FECA’’), the Commission may seek 

and assess civil monetary penalties for 

violations of FECA, the Presidential 

Election Campaign Fund Act, 26 U.S.C. 

9001–13, and the Presidential Primary 

Matching Payment Account Act, 26 

U.S.C. 9031–42. 

The Inflation Adjustment Act requires 

federal agencies to adjust their civil 

penalties annually, and the adjustments 

must take effect no later than January 15 

of every year.4 Pursuant to guidance 

issued by the Office of Management and 

Budget,5 the Commission is now 

adjusting its civil monetary penalties for 

2019.6

The Commission must adjust for 

inflation its civil monetary penalties 

‘‘notwithstanding Section 553’’ of the 

Administrative Procedures Act 

(‘‘APA’’).7 Thus, the APA’s notice-andcomment and delayed effective date 

requirements in 5 U.S.C. 553(b)–(d) do 

not apply because Congress has 

specifically exempted agencies from 

these requirements.8

Furthermore, because the inflation 

adjustments made through these final 

rules are required by Congress and 

involve no Commission discretion or 

policy judgments, these rules do not 

need to be submitted to the Speaker of 

the House of Representatives or the 

President of the Senate under the 

Congressional Review Act, 5 U.S.C. 801 

et seq. Moreover, because the APA’s 

notice-and-comment procedures do not 

apply to these final rules, the 

Commission is not required to conduct 

a regulatory flexibility analysis under 5 

U.S.C. 603 or 604. See 5 U.S.C. 601(2), 

604(a). Nor is the Commission required 

to submit these revisions for 

congressional review under FECA. See 5 

U.S.C. 30111(d)(1), (4) (providing for 

congressional review when Commission 

‘‘prescribe[s]’’ a ‘‘rule of law’’). 

The new penalty amounts will apply 

to civil monetary penalties that are 

assessed after the date the increase takes 

effect, even if the associated violation 

predated the increase.9

Explanation and Justification 

The Inflation Adjustment Act requires 

the Commission to annually adjust its 

civil monetary penalties for inflation by 

applying a cost-of-living-adjustment 

(‘‘COLA’’) ratio.10 The COLA ratio is the 

percentage that the Consumer Price 

Index (‘‘CPI’’) 11 ‘‘for the month of 

October preceding the date of the 

adjustment’’ exceeds the CPI for October 

of the previous year.12 To calculate the 

adjusted penalty, the Commission must 

increase the most recent civil monetary 

penalty amount by the COLA ratio.13

According to the Office of Management 

and Budget, the COLA ratio for 2019 is 

0.02522, or 2.522%; thus, to calculate 

the new penalties, the Commission must 

multiply the most recent civil monetary 

penalties in force by 1.02522.14

The Commission assesses two types of 

civil monetary penalties that must be 

adjusted for inflation. First are penalties 

that are either negotiated by the 

Commission or imposed by a court for 

violations of FECA, the Presidential 

Election Campaign Fund Act, or the 

Presidential Primary Matching Payment 

Account Act. These civil monetary 

penalties are set forth at 11 CFR 111.24. 

Second are the civil monetary penalties 

assessed through the Commission’s 

Administrative Fines Program for late 

filing or non-filing of certain reports 

required by FECA. See 52 U.S.C. 

30109(a)(4)(C) (authorizing 

Administrative Fines Program), 30104(a) 

(requiring political committee treasurers 


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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 66597 

15Election sensitive reports are certain reports 

due shortly before an election. See 11 CFR 

111.43(d)(1). 

16A report is considered to be ‘‘not filed’’ if it is 

never filed or is filed more than a certain number 

of days after its due date. See 11 CFR 111.43(e). 

to report receipts and disbursements 

within certain time periods). The 

penalty schedules for these civil 

monetary penalties are set out at 11 CFR 

111.43 and 111.44. 

1. 11 CFR 111.24—Civil Penalties 

FECA establishes the civil monetary 

penalties for violations of FECA and the 

other statutes within the Commission’s 

jurisdiction. See 52 U.S.C. 30109(a)(5), 

(6), (12). Commission regulations in 11 

CFR 111.24 provide the current 

inflation-adjusted amount for each such 

civil monetary penalty. To calculate the 

adjusted civil monetary penalty, the 

Commission multiplies the most recent 

penalty amount by the COLA ratio and 

rounds that figure to the nearest dollar. 

The actual adjustment to each civil 

monetary penalty is shown in the chart 

below. 

Section Most recent 

civil penalty COLA New civil penalty 

11 CFR 111.24(a)(1) ................................................................................................................... $19,446 1.02522 $19,936 

11 CFR 111.24(a)(2)(i) ................................................................................................................ 41,484 1.02522 42,530 

11 CFR 111.24(a)(2)(ii) ............................................................................................................... 68,027 1.02522 69,743 

11 CFR 111.24(b) ........................................................................................................................ 5,817 1.02522 5,964 

11 CFR 111.24(b) ........................................................................................................................ 14,543 1.02522 14,910 

2. 11 CFR 111.43, 111.44 

—Administrative Fines 

FECA authorizes the Commission to 

assess civil monetary penalties for 

violations of the reporting requirements 

of 52 U.S.C. 30104(a) according to the 

penalty schedules ‘‘established and 

published by the Commission.’’ 52 

U.S.C. 30109(a)(4)(C)(i). The 

Commission has established two such 

schedules: The schedule in 11 CFR 

111.43(a) applies to reports that are not 

election sensitive, and the schedule in 

11 CFR 111.43(b) applies to reports that 

are election sensitive.15 Each schedule 

contains two columns of penalties, one 

for late-filed reports and one for nonfiled reports, with penalties based on 

the level of financial activity in the 

report and, if late-filed, its lateness.16 In 

addition, 11 CFR 111.43(c) establishes a 

civil monetary penalty for situations in 

which a committee fails to file a report 

and the Commission cannot calculate 

the relevant level of activity. Finally, 11 

CFR 111.44 establishes a civil monetary 

penalty for failure to file timely reports 

of contributions received less than 20 

days, but more than 48 hours, before an 

election. See 52 U.S.C. 30104(a)(6). 

To determine the adjusted civil 

monetary penalty amount for each level 

of activity, the Commission multiplies 

the most recent penalty amount by the 

COLA ratio and rounds that figure to the 

nearest dollar. The new civil monetary 

penalties are shown in the schedules in 

the rule text, below. 

List of Subjects in 11 CFR Part 111 

Administrative practice and 

procedures, Elections, Law enforcement, 

Penalties. 

For the reasons set out in the 

preamble, the Federal Election 

Commission amends subchapter A of 

chapter I of title 11 of the Code of 

Federal Regulations as follows: 

PART 111—COMPLIANCE 

PROCEDURE (52 U.S.C. 30109, 

30107(a)) 

■ 1. The authority citation for part 111 

continues to read as follows: 

Authority: 52 U.S.C. 30102(i), 30109, 

30107(a), 30111(a)(8); 28 U.S.C. 2461 note; 31 

U.S.C. 3701, 3711, 3716–3719, and 3720A, as 

amended; 31 CFR parts 285 and 900–904. 

§ 111.24 [Amended] 

■ 2. Section 111.24 is amended in the 

table below by, for each section 

indicated in the left column, removing 

the number indicated in the middle 

column, and adding in its place the 

number indicated in the right column as 

follows: 

Section Remove Add 

111.24(a)(1) ............................................................................................................................................................. $19,446 $19,936 

111.24(a)(2)(i) .......................................................................................................................................................... 41,484 42,530 

111.24(a)(2)(ii) ......................................................................................................................................................... 68,027 69,743 

111.24(b) .................................................................................................................................................................. 5,817 5,964 

111.24(b) .................................................................................................................................................................. 14,543 14,910 

■ 3. Section 111.43 is amended by 

revising paragraphs (a), (b), and (c) to 

read as follows: 

§ 111.43 What are the schedules of 

penalties? 

(a) The civil money penalty for all 

reports that are filed late or not filed, 

except election sensitive reports and 

pre-election reports under 11 CFR 104.5, 

shall be calculated in accordance with 

the following schedule of penalties: 

Table 1 to paragraph (a) 

If the level of activity in the report was: And the report was filed late, the civil money penalty 

is: Or the report was not filed, the civil money penalty is: 

$1–4,999.99 a .............................. [$35 + ($6 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$341 × [1 + (.25 × Number of previous violations)]. 

$5,000–9,999.99 ......................... [$68 + ($6 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$410 × [1 + (.25 × Number of previous violations)]. 

$10,000–24,999.99 ..................... [$146 + ($6 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$684 × [1 + (.25 × Number of previous violations)]. 


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66598 Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 

If the level of activity in the report was: And the report was filed late, the civil money penalty 

is: Or the report was not filed, the civil money penalty is: 

$25,000–49,999.99 ..................... [$290 + ($28 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$1230 × [1 + (.25 × Number of previous violations)]. 

$50,000–74,999.99 ..................... [$437 + ($110 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$3925 × [1 + (.25 × Number of previous violations)]. 

$75,000–99,999.99 ..................... [$581 + ($146 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$5086 × [1 + (.25 × Number of previous violations)]. 

$100,000–149,999.99 ................. [$871 + ($182 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$6541 × [1 + (.25 × Number of previous violations)]. 

$150,000–199,999.99 ................. [$1164 + ($217 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$7994 × [1 + (.25 × Number of previous violations)]. 

$200,000–249,999.99 ................. [$1453 + ($254 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$9446 × [1 + (.25 × Number of previous violations)]. 

$250,000–349,999.99 ................. [$2181 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$11,627 × [1 + (.25 × Number of previous violations)]. 

$350,000–449,999.99 ................. [$2908 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$13,080 × [1 + (.25 × Number of previous violations)]. 

$450,000–549,999.99 ................. [$3633 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$13,806 × [1 + (.25 × Number of previous violations)]. 

$550,000–649,999.99 ................. [$4360 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$14,535 × [1 + (.25 × Number of previous violations)]. 

$650,000–749,999.99 ................. [$5086 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$15,260 × [1 + (.25 × Number of previous violations)]. 

$750,000–849,999.99 ................. [$5813 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$15,987 × [1 + (.25 × Number of previous violations)]. 

$850,000–949,999.99 ................. [$6541 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$16,713 × [1 + (.25 × Number of previous violations)]. 

$950,000 or over ........................ [$7267 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$17,440 × [1 + (.25 × Number of previous violations)]. 

aThe civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report. 

(b) The civil money penalty for 

election sensitive reports that are filed 

late or not filed shall be calculated in 

accordance with the following schedule 

of penalties: 

Table 1 to paragraph (b) 

If the level of activity in the report was: And the report was filed late, the civil money penalty 

is: Or the report was not filed, the civil money penalty is: 

$1–$4,999.99 a ............................ [$68 + ($13 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$684 × [1 + (.25 × Number of previous violations)]. 

$5,000–$9,999.99 ....................... [$137 + ($13 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$820 × [1 + (.25 × Number of previous violations)]. 

$10,000–24,999.99 ..................... [$205 + ($13 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$1230 × [1 + (.25 × Number of previous violations)]. 

$25,000–49,999.99 ..................... [$437 + ($35 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$1913 × [1 + (.25 × Number of previous violations)]. 

$50,000–74,999.99 ..................... [$654 + ($110 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$4360 × [1 + (.25 × Number of previous violations)]. 

$75,000–99,999.99 ..................... [$871 + ($146 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$5813 × [1 + (.25 × Number of previous violations)]. 

$100,000–149,999.99 ................. [$1308 + ($182 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$7267 × [1 + (.25 × Number of previous violations)]. 

$150,000–199,999.99 ................. [$1744 + ($217 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$8719 × [1 + (.25 × Number of previous violations)]. 

$200,000–249,999.99 ................. [$2181 + ($254 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$10,901 × [1 + (.25 × Number of previous violations)]. 

$250,000–349,999.99 ................. [$3270 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$13,080 × [1 + (.25 × Number of previous violations)]. 

$350,000–449,999.99 ................. [$4360 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$14,535 × [1 + (.25 × Number of previous violations)]. 

$450,000–549,999.99 ................. [$5450 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$15,987 × [1 + (.25 × Number of previous violations)]. 

$550,000–649,999.99 ................. [$6541 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$17,440 × [1 + (.25 × Number of previous violations)]. 

$650,000–749,999.99 ................. [$7630 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$18,895 × [1 + (.25 × Number of previous violations)]. 

$750,000–849,999.99 ................. [$8719 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$20,347 × [1 + (.25 × Number of previous violations)]. 

$850,000–949,999.99 ................. [$9810 + ($290 × Number of days late)] × [1 + (.25 × 

Number of previous violations)].

$21,799 × [1 + (.25 × Number of previous violations)]. 


khammond on DSK30JT082PROD with RULES
Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations 66599 

1Pub. L. 101–410, Oct. 5, 1990, 104 Stat. 890, 

codified at 28 U.S.C. 2461 note. 

2Pub. L. 114–74, Title VII, section 701(b), Nov. 

2, 2015, 129 Stat. 599, codified at 28 U.S.C. 2461 

note. 

3See 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 82 FR 8584 (January 27, 2017). 

5 83 FR 1517 (January 12, 2018) (final rule); 83 FR 

1657 (Jan. 12, 2018) (2018 CMP Notice). 

6The inflation adjustment multiplier for 2019 is 

1.02522. See OMB Memorandum M–19–04, 

‘‘Implementation of Penalty Inflation Adjustments 

for 2019, Pursuant to the Federal Civil Penalties 

Inflation Adjust Act Improvements Act of 2015’’ at 

1 (Dec. 14, 2018). 

7Penalties 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. 

If the level of activity in the report was: And the report was filed late, the civil money penalty 

is: Or the report was not filed, the civil money penalty is: 

$950,000 or over ........................ [$10,901 + ($290 × Number of days late)] × [1 + (.25 

× Number of previous violations)].

$23,254 × [1 + (.25 × Number of previous violations)]. 

aThe civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report. 

(c) If the respondent fails to file a 

required report and the Commission 

cannot calculate the level of activity 

under paragraph (d) of this section, then 

the civil money penalty shall be $7,994. 

* * * * * 

§ 111.44 [Amended] 

■ 4. Amend § 111.44(a)(1) by removing 

‘‘$142’’ and adding in its place ‘‘$146’’. 

On behalf of the Commission. 

Dated: December 18, 2018. 

Caroline C. Hunter, 

Chair, Federal Election Commission. 

[FR Doc. 2018–27801 Filed 12–26–18; 8:45 am] 

BILLING CODE 6715–01–P 

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 2019. 

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, 2019, 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 

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. 

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 2017, the OCC 

codified the formula for making CMP 

adjustments in its rules.4 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.5

On December 14, 2018, the OMB 

issued guidance to affected agencies on 

implementing the required annual 

adjustment, which included the relevant 

inflation multiplier.6 The OCC has 

applied that multiplier to the maximum 

CMPs allowable in 2018 for national 

banks and federal savings associations 

as listed in the 2018 CMP notice to 

calculate the maximum amount of CMPs 

that may be assessed by the OCC in 

2019.7 There were no new statutory 

CMPs administered by the OCC during 

2018. 

The following charts provide the 

inflation-adjusted CMPs for use 

beginning on January 1, 2019, pursuant 

to 12 CFR 19.240(b) and 109.103(c) for 

conduct occurring on or after November 

2, 2015: 

PENALTIES APPLICABLE TO NATIONAL BANKS

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 ........................................................................................................................ 10,067 

Tier 2 ........................................................................................................................ 50,334 

Tier 3 ........................................................................................................................ 2 2,013,399 

12 U.S.C. 164 .......................................... Violation of Reporting Requirements: 

Tier 1 ........................................................................................................................ 4,027 

Tier 2 ........................................................................................................................ 40,269 


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