4820 Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Rules and Regulations 

1Public Law 101–410, as amended in 2015 by 

section 701 of Public Law 114–74 and codified as 

a note to 28 U.S.C. 2461. 

2Act, sec. 4(a). 

3Act, sec. 4(b)(2) (adjustments are to be made 

‘‘notwithstanding’’ the rulemaking requirements of 

5 U.S.C. 553 of the Administrative Procedure Act). 

4The increased CMPs, however, apply only with 

respect to underlying violations occurring after 

November 2, 2015, the date of enactment of the 

most recent amendment to the Act. Act, sec. 6. 

5Act, sec. 5; OMB Mem. M–24–07 (Dec. 19, 

2023). 

6Act, sec. 5(a). FinCEN previously applied a 

catch-up adjustment for each penalty subject to the 

Act in 2016 based on the year and corresponding 

amount(s) for which the maximum penalty or range 

of minimum and maximum penalties was 

established or last adjusted, whichever is later. See 

Civil Monetary Penalty Adjustment and Table, 81 

FR 42503, 42504 (June 30, 2016). Because the year 

of establishment or last adjustment is different for 

different penalties, penalties that were of the same 

size when each was promulgated can have different 

values today if promulgated at different times. 

7The CTA is Title LXIV of the William M. (Mac) 

Thornberry National Defense Authorization Act for 

Fiscal Year 2021, Public Law 116–283 (Jan. 1, 

2021). The CTA is codified at 31 U.S.C. 5336. 

8The CTA’s BOI reporting requirements are 

implemented by regulations effective January 1, 

2024, and the CTA’s requirements regarding BOI 

access and safeguards are implemented by 

regulations effective February 20, 2024. See 

FinCEN, Beneficial Ownership Information 

Reporting Requirements, 87 FR 59498 (Sept. 30, 

2022); FinCEN, Beneficial Ownership Information 

Access and Safeguards, 88 FR 88732 (Dec. 22, 

2023). 

9Under section 5(b)(2)(B) of the Act, the 

adjustment is to ‘‘be applied to the amount of the 

civil monetary penalty as it was most recently 

established or adjusted under a provision of law 

other than [the Act].’’ This amount is the penalty 

‘‘established (i.e., as originally enacted by 

Congress), or last adjusted (i.e., by Congress in 

statute, or by the agency through regulation), 

whichever is later, other than pursuant to [Act].’’ 

OMB Mem. M–16–06 (Feb. 24, 2016). Because the 

CTA-associated CMPs were established by Congress 

in 2021 and have not since been adjusted by statute 

or regulation, they were subject to the 2022 and 

2023 adjustments required by the Act, as well as the 

2024 adjustment. FinCEN applied an adjustment 

multiplier of 1.06222 in 2022 and of 1.07745 in 

2023 to CMPs. FinCEN, Inflation Adjustment of 

Civil Monetary Penalties, 87 FR 3433, 3434 (Jan. 24, 

2022); FinCEN, Inflation Adjustment of Civil 

Monetary Penalties, 88 FR 3311, 3312 (Jan. 19, 

2023). 

amended by Pub. L. 109–144, 119 Stat. 2660, 

Pub. L. 110–160, 121 Stat. 1839, Pub. L. 114– 

1, 129 Stat. 3, and Pub. L. 116–94, 133 Stat. 

2534 (15 U.S.C. 6701 note); Pub. L. 114–74, 

129 Stat. 601, Title VII (28 U.S.C. 2461 note). 

■ 6. Amend § 50.83 by revising 

paragraph (a) to read as follows: 

§ 50.83 Adjustment of civil monetary 

penalty amount. 

(a) Inflation adjustment. Any penalty 

under the Act and these regulations may 

not exceed the greater of $1,697,012 

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. 

* * * * * 

Kayla Arslanian, 

Executive Secretary. 

[FR Doc. 2024–01409 Filed 1–24–24; 8:45 am] 

BILLING CODE 4810–AK–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Part 1010 

Financial Crimes Enforcement 

Network; Inflation Adjustment of Civil 

Monetary Penalties 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Final rule. 

SUMMARY: FinCEN is publishing this 

final rule to reflect inflation adjustments 

to its civil monetary penalties as 

mandated by the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended. This rule adjusts certain 

maximum civil monetary penalties 

within the jurisdiction of FinCEN to the 

amounts required by that Act. 

DATES: Effective January 25, 2024. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN Regulatory Support Section at 

1–800–767–2825 or electronically at 

frc@fincen.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

To improve the effectiveness of civil 

monetary penalties (CMPs) and to 

maintain their deterrent effect, the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the Act) 1

requires Federal agencies to adjust for 

inflation each CMP provided by law 

within the jurisdiction of the agency. 

Under the Act, agencies are required to 

adjust CMPs annually and publish these 

adjustments in the Federal Register.2

Agencies are to make the adjustments 

without engaging in notice-andcomment rulemaking, and these 

adjustments may be immediately 

effective upon publication.3 The 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.4

FinCEN publishes CMP inflation 

adjustments in its regulations at 31 CFR 

1010.821. 

II. Method of Calculation 

The method of calculating CMP 

adjustments applied in this final rule is 

determined by the Act. Under the Act 

and Office of Management and Budget 

(OMB) guidance, annual inflation 

adjustments 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.5 As set forth in 

OMB Memorandum M–24–07 of 

December 19, 2023, the adjustment 

multiplier for 2024 is 1.03241. To 

complete the 2024 annual adjustment, 

each current FinCEN CMP is multiplied 

by the 2024 adjustment multiplier. 

Under the Act, any increase in CMP 

must be rounded to the nearest multiple 

of $1.6

This final rule lists adjusted CMPs 

associated with violations of the 

Corporate Transparency Act (CTA) 7 for 

the first time: specifically, the CMPs for 

beneficial ownership information (BOI) 

reporting violations (31 U.S.C. 

5336(h)(3)(A)(i)) and for the 

unauthorized disclosure or use of BOI 

(31 U.S.C. 5336(h)(3)(B)(i)). These CMPs 

were established when the CTA became 

law in 2021, but were not published 

with prior adjustments because 

FinCEN’s regulations implementing the 

CTA were then not yet effective.8

Because these CTA-associated CMPs 

will be effective in 2024, they are listed 

in this adjustment. As these CMPs were 

established in 2021, they were also 

subject to the CMP adjustments imposed 

in 2022 and 2023, even though they 

were not published with those 

adjustments; accordingly, this rule 

applies the 2022, 2023, and 2024 

adjustment multipliers to the CMPs 

established by the CTA.9

Procedural Matters 

1. Administrative Procedure Act 

Section 4(b) of the Act requires 

agencies, beginning in 2017, to make 

annual adjustments for inflation to 

CMPs notwithstanding the rulemaking 

requirements of 5 U.S.C. 553. 

Additionally, the methodology used 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. 

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 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Rules and Regulations 4821 

3(f) of Executive Order 12866, as 

amended. 

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. 

List of Subjects in 31 CFR Part 1010 

Administrative practice and 

procedure, Aliens, Authority 

delegations (Government agencies), 

Banks and banking, Brokers, Business 

and industry, Commodity futures, 

Currency, Citizenship and 

naturalization, Electronic filing, Federal 

savings associations, Federal-States 

relations, Federally recognized tribes, 

Foreign persons, Holding companies, 

Indian law, Indians, Insurance 

companies, Investment advisers, 

Investment companies, Investigations, 

Law enforcement, Penalties, Reporting 

and recordkeeping requirements, Small 

businesses, Securities, Terrorism, Tribal 

government, Time. 

Authority and Issuance 

For the reasons set forth in the 

preamble, part 1010 of chapter X of title 

31 of the Code of Federal Regulations is 

amended as follows: 

PART 1010—GENERAL PROVISIONS 

■ 1. The authority citation for part 1010 

continues to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1960; 

31 U.S.C. 5311–5314 and 5316–5336; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. 

2006, Pub. L. 114–41, 129 Stat. 458–459; sec. 

701, Pub. L. 114–74, 129 Stat. 599. 

■ 2. Amend § 1010.821 by revising table 

1 of § 1010.821 to read as follows: 

§ 1010.821 Penalty adjustment and table. 

* * * * * 

TABLE 1 TO § 1010.821—PENALTY ADJUSTMENT TABLE

U.S. Code citation Civil monetary penalty description Penalties as last 

amended by statute 

Maximum penalty 

amounts or range of 

minimum and maximum 

penalty amounts for 

penalties assessed on 

or after January 25, 

2024 

12 U.S.C. 1829b(j) ................ Relating to Recordkeeping Violations for Funds Transfers $10,000 $25,597 

12 U.S.C. 1955 ...................... Willful or Grossly Negligent Recordkeeping Violations ....... 10,000 25,597 

31 U.S.C. 5318(k)(3)(C) ........ Failure To Terminate Correspondent Relationship with 

Foreign Bank.

10,000 17,315 

31 U.S.C. 5321(a)(1) ............. General Civil Penalty Provision for Willful Violations of 

Bank Secrecy Act Requirements.

25,000–100,000 69,733–278,937 

31 U.S.C. 5321(a)(5)(B)(i) ..... Foreign Financial Agency Transaction—Non-Willful Violation of Transaction.10,000 16,117 

31 U.S.C. 5321(a)(5)(C)(i)(I) Foreign Financial Agency Transaction—Willful Violation of 

Transaction.

100,000 161,166 

31 U.S.C. 5321(a)(6)(A) ........ Negligent Violation by Financial Institution or Non-Financial Trade or Business.500 1,394 

31 U.S.C. 5321(a)(6)(B) ........ Pattern of Negligent Activity by Financial Institution or 

Non-Financial Trade or Business.

50,000 108,489 

31 U.S.C. 5321(a)(7) ............. Violation of Certain Due Diligence Requirements, Prohibition on Correspondent Accounts for Shell Banks, and 

Special Measures.

1,000,000 1,731,383 

31 U.S.C. 5330(e) ................. Civil Penalty for Failure To Register as Money Transmitting Business.5,000 10,289 

31 U.S.C. 5336(h)(3)(A)(i) ..... Civil Penalty for Beneficial Ownership Information Reporting Violation.500 591 

31 U.S.C. 5336(h)(3)(B)(i) ..... Civil Penalty for Unauthorized Disclosure or Use of Beneficial Ownership Information.500 591 

Andrea M. Gacki, 

Director, Financial Crimes Enforcement 

Network. 

[FR Doc. 2024–01420 Filed 1–24–24; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2024–0013] 

Security Zone; Lower Mississippi 

River, Mile Marker 94 to 97 Above Head 

of Passes, New Orleans, LA 

AGENCY: Coast Guard, DHS. 

ACTION: Notification of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

a security zone for all navigable waters 

within 400 yards of the Left Descending 

Bank (LDB) of the Lower Mississippi 

River (LMR) Mile Marker (MM) 94.4 to 

MM 95.1, Above Head of Passes (AHP), 

New Orleans, LA. This security zone is 

necessary to provide security and 

protection for visiting personnel during 

the events related to the Mardi Gras 

celebration. No person or vessel may 

enter this security zone unless 

authorized by the Captain of the Port 

New Orleans (COTP) or a designated 

representative. 


khammond on DSKJM1Z7X2PROD with RULES