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[Federal Register Volume 90, Number 6 (Friday, January 10, 2025)]
[Rules and Regulations]
[Pages 1848-1850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00374]

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DEPARTMENT OF THE TREASURY

 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 2025.

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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 10, 
2025 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 17, 2024, 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 2024 for national banks and Federal 
savings associations as listed in the 2024 CMP notice \6\ to calculate 
the maximum amount of CMPs that may be assessed by the OCC in 2025.\7\ 
There were no new statutory CMPs administered by the OCC during 2024.
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    \5\ The inflation adjustment multiplier for 2025 is 1.02598. See 
OMB Memorandum M-25-02, Implementation of Penalty Inflation 
Adjustments for 2025, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Dec. 17, 2024).
    \6\ See 89 FR 872 (Jan. 8, 2024).
    \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 10, 2025, pursuant to 12 CFR 19.240(b) and 
109.103(c)(2) 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..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 164..................  Violation of Reporting
                                  Requirements:
                                    Tier 1..............           5,026

[[Page 1849]]

 
                                    Tier 2..............          50,265
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 481..................  Refusal of Affiliate to          12,567
                                  Cooperate in
                                  Examination.
12 U.S.C. 504..................  Violation of Various
                                  Provisions of the
                                  Federal Reserve Act:
                                    Tier 1..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 1817(j)(16)..........  Violation of Change in
                                  Bank Control Act:
                                    Tier 1..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 1818(i)(2) \3\.......  Violation of Law,
                                  Unsafe or Unsound
                                  Practice, or Breach of
                                  Fiduciary Duty:
                                    Tier 1..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 1820(k)(6)(A)(ii)....  Violation of Post-              413,388
                                  Employment
                                  Restrictions: Per
                                  violation.
12 U.S.C. 1832(c)..............  Violation of                      3,650
                                  Withdrawals by
                                  Negotiable or
                                  Transferable
                                  Instrument for
                                  Transfers to Third
                                  Parties: Per violation.
12 U.S.C. 1884.................  Violation of the Bank               365
                                  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..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 3110(a)..............  Violation of Various             57,435
                                  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..............           4,596
                                    Tier 2..............          45,946
                                    Tier 3..............   \2\ 2,297,385
12 U.S.C. 3909(d)(1)...........  Violation of                      3,126
                                  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               11,823
                                     person)--Per
                                     violation.
                                    Tier 1 (other                118,225
                                     person)--Per
                                     violation.
                                    Tier 2 (natural              118,225
                                     person)--Per
                                     violation.
                                    Tier 2 (other                591,127
                                     person)--Per
                                     violation.
                                    Tier 3 (natural              236,451
                                     person)--Per
                                     violation.
                                    Tier 3 (other              1,182,251
                                     person)--Per
                                     violation.
15 U.S.C. 1639e(k).............  Violation of Appraisal
                                  Independence
                                  Requirements:
                                    First violation.....          14,435
                                    Subsequent                    28,866
                                     violations.
42 U.S.C. 4012a(f)(5)..........  Flood Insurance: Per              2,730
                                  violation.
------------------------------------------------------------------------
\1\ The maximum penalty amount is per day, unless otherwise indicated.
\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
------------------------------------------------------------------------
                                                              Maximum
                                                          penalty amount
       U.S. Code citation            CMP description       (in dollars)
                                                                \1\
------------------------------------------------------------------------
12 U.S.C. 1464(v)..............  Reports of Condition:
                                    1st Tier............           5,026
                                    2nd Tier............          50,265
                                    3rd Tier............   \2\ 2,513,215
12 U.S.C. 1467(d)..............  Refusal of Affiliate to          12,567
                                  Cooperate in
                                  Examination.
12 U.S.C. 1467a(r).............  Late/Inaccurate
                                  Reports:
                                    1st Tier............           5,026
                                    2nd Tier............          50,265
                                    3rd Tier............   \2\ 2,513,215
712 U.S.C. 1817(j)(16).........  Violation of Change in
                                  Bank Control Act:
                                    Tier 1..............          12,567

[[Page 1850]]

 
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 1818(i)(2) \3\.......  Violation of Law,
                                  Unsafe or Unsound
                                  Practice, or Breach of
                                  Fiduciary Duty:
                                    Tier 1..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
12 U.S.C. 1820(k)(6)(A)(ii)....  Violation of Post-              413,388
                                  Employment
                                  Restrictions: Per
                                  violation.
12 U.S.C. 1832(c)..............  Violation of                      3,318
                                  Withdrawals by
                                  Negotiable or
                                  Transferable
                                  Instruments for
                                  Transfers to Third
                                  Parties: Per violation.
12 U.S.C. 1884.................  Violation of the Bank               365
                                  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..............          12,567
                                    Tier 2..............          62,829
                                    Tier 3..............   \2\ 2,513,215
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             11,823
                                     person)--Per
                                     violation.
                                    1st Tier (other              118,225
                                     person)--Per
                                     violation.
                                    2nd Tier (natural            118,225
                                     person)--Per
                                     violation.
                                    2nd Tier (other              591,106
                                     person)--Per
                                     violation.
                                    3rd Tier (natural            236,451
                                     person)--Per
                                     violation.
                                    3rd Tier (other            1,182,251
                                     person)--Per
                                     violation.
15 U.S.C. 1639e(k).............  Violation of Appraisal
                                  Independence
                                  Requirements:
                                    First violation.....          14,435
                                    Subsequent                    28,866
                                     violations.
42 U.S.C. 4012a(f)(5)..........  Flood Insurance: Per              2,730
                                  violation.
------------------------------------------------------------------------
\1\ The maximum penalty amount is per day, unless otherwise indicated.
\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,
Acting Senior Deputy Comptroller and Chief Counsel, Office of the 
Comptroller of the Currency.
[FR Doc. 2025-00374 Filed 1-8-25; 8:45 am]
BILLING CODE 4810-33-P
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