[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1657-1659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00521]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Notice of Inflation Adjustments for Civil Money Penalties

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Notice of Monetary Penalties 2018.

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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 
notice are applicable to penalties assessed on or after January 12, 
2018, for conduct occurring on or after November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Kevin Korzeniewski, Counsel, 
Legislative and Regulatory Activities Division, (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 notice 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.
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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 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\ Contemporaneous with this notice, the OCC also submitted for 
publication a final regulation to remove the now-outdated CMP amounts

[[Page 1658]]

from its regulations, while updating those amounts for inflation 
through this notice.
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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.
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    On December 15, 2017, the OMB issued guidance to affected agencies 
on implementing the required annual adjustment, which included the 
relevant inflation multiplier. The OCC has applied that multiplier to 
the maximum CMPs allowable in 2017 for national banks and federal 
savings associations in 12 CFR 19.240(c) and 109.103(c), respectively, 
to calculate the maximum amount of CMPs that may be assessed by the OCC 
in 2018.\4\
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    \4\ 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 12, 2018, pursuant to 12 CFR 19.240(c) and 
109.103(c) for conduct occurring on or after November 2, 2015:

                 Penalties Applicable to National Banks
------------------------------------------------------------------------
                                                              Maximum
                                   Description and tier   penalty amount
       U.S. Code citation            (if applicable)       (in Dollars)
                                                                \1\
------------------------------------------------------------------------
12 U.S.C. 93(b)................  Violation of Various
                                  Provisions of the
                                  National Bank Act:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 164..................  Violation of Reporting
                                  Requirements:
                                    Tier 1..............           3,928
                                    Tier 2..............          39,278
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 481..................  Refusal of Affiliate to           9,819
                                  Cooperate in
                                  Examination.
12 U.S.C. 504..................  Violation of Various
                                  Provisions of the
                                  Federal Reserve Act:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 1817(j)(16)..........  Violation of Change in
                                  Bank Control Act:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 1818(i)(2) \3\.......  Violation of Law,
                                  Unsafe or Unsound
                                  Practice, or Breach of
                                  Fiduciary Duty:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 1820(k)(6)(A)(ii)....  Violation of Post-
                                  Employment
                                  Restrictions:
                                    Per violation.......         323,027
12 U.S.C. 1832(c)..............  Violation of
                                  Withdrawals by
                                  Negotiable or
                                  Transferable
                                  Instrument for
                                  Transfers to Third
                                  Parties:
                                    Per violation.......           2,852
12 U.S.C. 1884.................     Violation of the                 285
                                     Bank Protection Act.
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..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 3110(a)..............  Violation of Various             44,881
                                  Provisions of the
                                  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..............           3,591
                                    Tier 2..............          35,904
                                    Tier 3..............   \2\ 1,795,216
12 U.S.C. 3909(d)(1)...........  Violation of                      2,443
                                  International Lending
                                  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                9,239
                                     person)--Per
                                     violation.
                                    Tier 1 (other                 92,383
                                     person)--Per
                                     violation.
                                    Tier 2 (natural               92,383
                                     person)--Per
                                     violation.
                                    Tier 2 (other                461,916
                                     person)--Per
                                     violation.
                                    Tier 3 (natural              184,767
                                     person)--Per
                                     violation.
                                    Tier 3 (other                923,831
                                     person)--Per
                                     violation.
15 U.S.C. 1639e(k).............  Violation of Appraisal
                                  Independence
                                  Requirements:
                                    First violation.....          11,279
                                    Subsequent                    22,556
                                     violations.
42 U.S.C. 4012a(f)(5)..........  Flood Insurance:
                                    Per violation.......           2,133
------------------------------------------------------------------------
\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.


[[Page 1659]]


          Penalties Applicable to Federal Savings Associations
------------------------------------------------------------------------
                                                              Maximum
                                                          penalty amount
       U.S. Code citation            CMP Description       (in Dollars)
                                                                \1\
------------------------------------------------------------------------
12 U.S.C. 1464(v)..............  Reports of Condition:
                                    1st Tier............           3,928
                                    2nd Tier............          39,278
                                    3rd Tier............   \2\ 1,963,870
12 U.S.C. 1467(d)..............  Refusal of Affiliate to           9,819
                                  Cooperate in
                                  Examination.
12 U.S.C. 1467a(r).............  Late/Inaccurate
                                  Reports:
                                    1st Tier............           3,928
                                    2nd Tier............          39,278
                                    3rd Tier............   \2\ 1,963,870
12 U.S.C. 1817(j)(16)..........  Violation of Change in
                                  Bank Control Act:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 1818(i)(2) \3\.......  Violation of Law,
                                  Unsafe or Unsound
                                  Practice, or Breach of
                                  Fiduciary Duty:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
12 U.S.C. 1820(k)(6)(A)(ii)....  Violation of Post-
                                  Employment
                                  Restrictions:
                                    Per violation.......         323,027
12 U.S.C. 1832(c)..............  Violation of                      2,593
                                  Withdrawals by
                                  Negotiable or
                                  Transferable
                                  Instruments for
                                  Transfers to Third
                                  Parties:
                                    Per violation.......
12 U.S.C. 1884.................  Violation of the Bank               285
                                  Protection Act.
12 U.S.C. 1972(2)(F)...........  Violation of Provisions
                                  regarding
                                  Correspondent
                                  Accounts, Unsafe or
                                  Unsound Practices, or
                                  Breach of Fiduciary
                                  Duty:
                                    Tier 1..............           9,819
                                    Tier 2..............          49,096
                                    Tier 3..............   \2\ 1,963,870
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              9,239
                                     person)--Per
                                     violation.
                                    1st Tier (other               92,383
                                     person)--Per
                                     violation.
                                    2nd Tier (natural             92,383
                                     person)--Per
                                     violation.
                                    2nd Tier (other              461,916
                                     person)--Per
                                     violation.
                                    3rd Tier (natural            184,767
                                     person)--Per
                                     violation.
                                    3rd Tier (other              923,831
                                     person)--Per
                                     violation.
15 U.S.C. 1639e(k).............  Violation of Appraisal
                                  Independence
                                  Requirements:
                                    First violation.....          11,279
                                    Subsequent                    22,556
                                     violations.
42 U.S.C. 4012a(f)(5)..........  Flood Insurance:
                                    Per violation.......           2,133
------------------------------------------------------------------------
\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 1692l.


    Dated: January 9, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel, Office of the 
Comptroller of the Currency.
[FR Doc. 2018-00521 Filed 1-11-18; 8:45 am]
 BILLING CODE 4810-33-P