```

[Federal Register Volume 90, Number 18 (Wednesday, January 29, 2025)]
[Notices]
[Pages 8429-8430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01633]

-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of Investment Security

Notice on Penalty Inflation Adjustments for Civil Monetary 
Penalties for Violations of Provisions Pertaining to U.S. Investments 
in Certain National Security Technologies and Products in Countries of 
Concern

AGENCY: Office of Investment Security, Department of the Treasury.

ACTION: Notice announcing penalty inflation adjustments for civil 
monetary penalties for 2025.

-----------------------------------------------------------------------

SUMMARY: The Department of the Treasury's Office of Investment Security 
is giving notice of its updated maximum civil monetary penalties in 
connection with the Outbound Investment Security Program. These amounts 
are effective through January 14, 2026. These figures represent an 
annual adjustment for inflation. The updated figures and notification 
are required by the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended by the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015.

FOR FURTHER INFORMATION CONTACT: Meena R. Sharma, Director, Office of 
Investment Security Policy and International Relations, at U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 
20220; telephone: (202) 622-3425; email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    On August 9, 2023, the President issued Executive Order 14105 (88 
FR 54867), ``Addressing United States Investments in Certain National 
Security Technologies and Products in Countries of Concern'' (the 
Outbound Order), pursuant to his authority under the Constitution and 
the laws of the United States, including the

[[Page 8430]]

International Emergency Economic Powers Act (IEEPA), the National 
Emergencies Act, and section 301 of title 3, United States Code 
(U.S.C.). Under section 10(a) of the Outbound Order, the President 
authorizes the Secretary of the Treasury to promulgate rules and 
regulations and requires the Secretary to investigate, in consultation 
with the heads of relevant agencies, as appropriate, violations of the 
Outbound Order or the regulations and pursue available civil penalties 
for such violations. On October 28, 2024, the Treasury Department 
issued a final rule (89 FR 90398, November 15, 2024) (Final Rule) with 
the regulations implementing the Outbound Order.
    Under Sec.  850.701 of the Final Rule, the Treasury Department may 
impose a civil monetary penalty on any person that violates the Final 
Rule. The Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended (Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note) (the 
FCPIA Act), requires annual adjustment of this civil monetary penalty, 
as well as publication in the Federal Register of the adjusted penalty 
amount. As of the date of issuance of the Final Rule, the current 
maximum civil penalty under IEEPA was an amount not to exceed the 
greater of an amount that is twice the amount of the transaction that 
is the basis of the violation with respect to which the penalty is 
imposed or $368,136.
    The method of calculating civil penalty adjustments applied in this 
notice is required by the FCPIA Act. Under the FCPIA Act and the Office 
of Management and Budget (OMB) guidance required by the FCPIA Act, 
annual inflation adjustments subsequent to the initial catch-up 
adjustment 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. As set 
forth in OMB Memorandum M-25-02 of December 17, 2024, the adjustment 
multiplier for 2025 is 1.02598. In order to complete the 2025 annual 
adjustment, each current maximum civil penalty is multiplied by the 
2025 adjustment multiplier. Under the FCPIA Act, any increase in the 
maximum civil penalty must be rounded to the nearest multiple of $1.
    The Treasury Department imposes civil penalties for violations of 
the Final Rule pursuant to the penalty authority in IEEPA. The 
adjustment results in the following new maximum civil penalties:
    $368,136 (current maximum per violation) x 1.02598 (OMB-issued 
inflationary adjustment multiplier) = $377,700.17; or an amount that is 
twice the amount of the transaction that is the basis of the violation 
with respect to which the penalty is imposed. When rounded to the 
nearest dollar, the new maximum penalty is $377,700, or an amount that 
is twice the amount of the transaction that is the basis of the 
violation with respect to which the penalty is imposed.

Andrew Fair,
Acting Assistant Secretary, Office of Investment Security.
[FR Doc. 2025-01633 Filed 1-28-25; 8:45 am]
BILLING CODE 4810-AK-P
```