[Federal Register Volume 89, Number 5 (Monday, January 8, 2024)]
[Rules and Regulations]
[Pages 872-874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00097]


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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 2024.

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SUMMARY: This document announces changes to the Office of the 
Comptroller of the Currency's (OCC) 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 8, 
2024 for conduct occurring on or after November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Lee Walzer, Counsel, Chief Counsel's 
Office, (202) 649-5490, 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 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 the 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 codified a CMP amount in its regulations, 
the agency would need to update that amount by regulation. However, if 
an agency codified a formula for making the CMP adjustments, then 
subsequent adjustments can be made solely by notice.\3\ In 2018, the 
OCC published a final regulation that removed the CMP amounts from its 
regulations while updating the CMP 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 19, 2023, 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 2023 for national banks and Federal 
savings associations as listed in the 2023 CMP notice \6\ to calculate 
the maximum amount of CMPs that may be assessed by the OCC in 2024.\7\ 
There were no new statutory CMPs administered by the OCC during 2023.
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    \5\ The inflation adjustment multiplier for 2024 is 1.03241. See 
OMB Memorandum M-24-07, Implementation of Penalty Inflation 
Adjustments for 2024, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Dec. 19, 2023).
    \6\ See 88 FR 289 (Jan. 4, 2023).
    \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 8, 2024, pursuant to 12 CFR 19.240(b) and 
109.103(c)(2)

[[Page 873]]

for conduct occurring on or after November 2, 2015:

                                     Penalties Applicable to National Banks
----------------------------------------------------------------------------------------------------------------
                                                                                                      Maximum
                                                                                                  penalty amount
                   U.S. Code citation                      Description and Tier (if applicable)    (in dollars)
                                                                                                        \1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 93(b)........................................  Violation of Various Provisions of the
                                                          National Bank Act:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 164..........................................  Violation of Reporting Requirements:
                                                            Tier 1..............................           4,899
                                                            Tier 2..............................          48,992
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 481..........................................  Refusal of Affiliate to Cooperate in             12,249
                                                          Examination.
12 U.S.C. 504..........................................  Violation of Various Provisions of the
                                                          Federal Reserve Act:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 1817(j)(16)..................................  Violation of Change in Bank Control
                                                          Act:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 1818(i)(2) \3\...............................  Violation of Law, Unsafe or Unsound
                                                          Practice, or Breach of Fiduciary Duty:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 1820(k)(6)(A)(ii)............................  Violation of Post-Employment                    402,920
                                                          Restrictions: Per violation.
12 U.S.C. 1832(c)......................................  Violation of Withdrawals by Negotiable            3,558
                                                          or Transferable Instrument for
                                                          Transfers to Third Parties: Per
                                                          violation.
12 U.S.C. 1884.........................................  Violation of the Bank Protection Act...             356
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..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 3110(a)......................................  Violation of Various Provisions of the           55,981
                                                          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..............................           4,480
                                                            Tier 2..............................          44,783
                                                            Tier 3..............................   \2\ 2,239,210
12 U.S.C. 3909(d)(1)...................................  Violation of International Lending                3,047
                                                          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 person)--Per                  11,524
                                                             violation.
                                                            Tier 1 (other person)--Per violation         115,231
                                                            Tier 2 (natural person)--Per                 115,231
                                                             violation.
                                                            Tier 2 (other person)--Per violation         576,158
                                                            Tier 3 (natural person)--Per                 230,464
                                                             violation.
                                                            Tier 3 (other person)--Per violation       1,152,314
15 U.S.C. 1639e(k).....................................  Violation of Appraisal Independence
                                                          Requirements:
                                                            First violation.....................          14,069
                                                            Subsequent violations...............          28,135
42 U.S.C. 4012a(f)(5)..................................  Flood Insurance: Per violation.........           2,661
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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
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                                                                                                      Maximum
                                                                                                  penalty amount
                   U.S. Code citation                                CMP description               (in dollars)
                                                                                                        \8\
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12 U.S.C. 1464(v)......................................  Reports of Condition:
                                                            1st Tier............................           4,899
                                                            2nd Tier............................          48,992
                                                            3rd Tier............................   \2\ 2,449,575

[[Page 874]]

 
12 U.S.C. 1467(d)......................................  Refusal of Affiliate to Cooperate in             12,249
                                                          Examination.
12 U.S.C. 1467a(r).....................................  Late/Inaccurate Reports:
                                                            1st Tier............................           4,899
                                                            2nd Tier............................          48,992
                                                            3rd Tier............................   \2\ 2,449,575
712 U.S.C. 1817(j)(16).................................  Violation of Change in Bank Control
                                                          Act:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 1818(i)(2) \3\...............................  Violation of Law, Unsafe or Unsound
                                                          Practice, or Breach of Fiduciary Duty:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
12 U.S.C. 1820(k)(6)(A)(ii)............................  Violation of Post-Employment                    402,920
                                                          Restrictions: Per violation.
12 U.S.C. 1832(c)......................................  Violation of Withdrawals by Negotiable            3,234
                                                          or Transferable Instruments for
                                                          Transfers to Third Parties: Per
                                                          violation.
12 U.S.C. 1884.........................................  Violation of the Bank Protection Act...             356
12 U.S.C. 1972(2)(F)...................................  Violation of Provisions regarding
                                                          Correspondent Accounts, Unsafe or
                                                          Unsound Practices, or Breach of
                                                          Fiduciary Duty:
                                                            Tier 1..............................          12,249
                                                            Tier 2..............................          61,238
                                                            Tier 3..............................   \2\ 2,449,575
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 person)--Per                11,524
                                                             violation.
                                                            1st Tier (other person)--Per                 115,231
                                                             violation.
                                                            2nd Tier (natural person)--Per               115,231
                                                             violation.
                                                            2nd Tier (other person)--Per                 576,158
                                                             violation.
                                                            3rd Tier (natural person)--Per               230,464
                                                             violation.
                                                            3rd Tier (other person)--Per               1,152,314
                                                             violation.
15 U.S.C. 1639e(k).....................................  Violation of Appraisal Independence
                                                          Requirements:
                                                            First violation.....................          14,069
                                                            Subsequent violations...............          28,135
42 U.S.C. 4012a(f)(5)..................................  Flood Insurance: Per violation.........           2,661
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\8\ 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.


Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2024-00097 Filed 1-5-24; 8:45 am]
BILLING CODE 4810-33-P