Source: https://www.federalregister.gov/documents/2020/04/09/2020-07509/inflation-adjustment-of-civil-monetary-penalties
Timestamp: 2020-05-25 05:41:25
Document Index: 120332704

Matched Legal Cases: ['arts 501', 'arts 501', 'arts 510', 'arts 535', '§\u2009501', 'art 501', 'art 510', '§\u2009510', 'art 535', '§\u2009535', 'art 536', '§\u2009536', 'art 539', '§\u2009539', 'art 541', '§\u2009541', 'art 542', '§\u2009542', 'art 544', '§\u2009544', 'art 546', '§\u2009546', 'art 547', '§\u2009547', 'art 548', '§\u2009548', 'art 549', '§\u2009549', 'art 560', '§\u2009560', 'art 561', '§\u2009561', 'art 566', '§\u2009566', 'art 576', '§\u2009576', 'art 583', '§\u2009583', 'art 584', '§\u2009584', 'art 588', '§\u2009588', 'art 592', '§\u2009592', 'art 594', '§\u2009594', 'art 597', '§\u2009597', 'art 598', '§\u2009598']

A Rule by the Foreign Assets Control Office on 04/09/2020
This rule is effective April 9, 2020.
85 FR 19884
19884-19888 (5 pages)
List of Subjects in 31 CFR Parts 501, 510, 535, 536, 539, 541, 542, 544, 546, 547, 548, 549, 560, 561, 566, 576, 583, 584, 588, 592, 594, 597, and 598
https://www.federalregister.gov/d/2020-07509 https://www.federalregister.gov/d/2020-07509
OFAC: Assistant Director for Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; Assistant Director for Sanctions Compliance & Evaluation, 202-622-2490.
Section 4 of the Federal Civil Penalties Inflation Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note), as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134, 110 Stat. 1321-373) and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C. 2461 note) (collectively, the FCPIA Act), requires each federal agency with statutory authority to assess civil monetary penalties (CMPs) to adjust CMPs annually for inflation according to a formula described in section 5 of the FCPIA Act. One purpose of the FCPIA Act is to ensure that CMPs continue to maintain their deterrent effect through periodic cost-of-living based adjustments.
OFAC has adjusted its CMPs four times since the Federal Civil Penalties Inflation Adjustment Act Improvements Act went into effect on November 2, 2015: An initial catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016), and annual adjustments on February 10, 2017 (82 FR 10434, February 10, 2017), March 19, 2018 (83 FR 11876, March 19, 2018), and June 14, 2019 (84 FR 27714, June 14, 2019).
The method of calculating CMP adjustments applied in this final rule is required by the FCPIA Act. Under the FCPIA Act and the Office of Management and Budget 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 Office of Management and Budget Memorandum M-20-05 of December 16, 2019, the adjustment multiplier for 2020 is 1.01764. In order to complete the 2020 annual adjustment, each current CMP is multiplied by the 2020 adjustment multiplier. Under the FCPIA Act, any increase in CMP must be rounded to the nearest multiple of $1.
OFAC imposes CMPs pursuant to the penalty authority in five statutes: the Trading With the Enemy Act (50 U.S.C. 4301-4341, at 4315) (TWEA); the International Emergency Economic Powers Act (50 U.S.C. 1701-1706, at 1705) (IEEPA); the Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 104-132, 110 Stat. 1212-1319, at 1250; 18 U.S.C. 2339B) (AEDPA); the Foreign Narcotics Kingpin Designation Act (Pub. L. 106-120, 113 Stat. 1626-1636, at 1632; 21 U.S.C. 1901-1908, at 1906) (FNKDA); and the Clean Diamond Trade Act (Pub. L. 108-19, 117 Stat. 631-637, at 634; 19 U.S.C. 3901-3913, at 3907) (CDTA).
The table below summarizes the existing and new maximum CMP amounts.
Existing maximum CMP amount
Maximum CMP amount effective April 9, 2020
TWEA $89,170 $90,743
IEEPA 302,584 307,922
AEDPA 79,874 81,283
FNKDA 1,503,470 1,529,991
CDTA 13,669 13,910
In addition to updating these maximum CMP amounts, OFAC is also updating two references to one-half the IEEPA maximum CMP from $151,292 to $153,961.
Finally, OFAC is making the following technical changes in the authorities sections of the parts of 31 CFR chapter V that are being amended by this rule: (i) In the authorities sections of 31 CFR parts 501 and 542, OFAC is correcting a typographic error and is changing certain hyphens to en dashes; (ii) in the authorities sections of 31 CFR parts 510, 560, 561, and 583, OFAC is adding CFR Compilation citations for more recently issued Presidential documents listed in those authorities sections and is changing certain hyphens to en dashes; and (iii) in the authorities sections of 31 CFR parts 535, 536, 539, 541, 544, 546, 547, 548, 549, 566, 576, 584, 588, 592, 594, and 598, OFAC is changing certain hyphens to en dashes.
The FCPIA Act expressly exempts this final rule from the notice and comment requirements of the Administrative Procedure Act, by directing agencies to adjust CMPs for inflation “notwithstanding section 553 of title 5, United States Code” (Pub. L. 114-74, 129 Stat. 599; 28 U.S.C. 2461 note). As such, this final rule is being issued without prior public notice or opportunity for public comment, with an effective date of April 9, 2020. Because the amended regulations involve a foreign affairs function, the provisions of Executive Order 13771 are inapplicable.
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a), 6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706; 50 U.S.C. 4301-4341; Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551).
2. In § 501.701(a)(3), remove “$89,170” and add in its place “$90,743”.
3. Amend appendix A to part 501 as follows:
a. In paragraph V.B.2.a.i., remove “$151,292” and add in its place “$153,961” and remove “$302,584” and add in its place “$307,922”.
b. In paragraph V.B.2.a.ii., remove “$302,584” in all three locations where it appears and add in its place in all three locations “$307,922”.
c. In paragraph V.B.2.a.v., remove “$302,584” and add in its place “$307,922”, remove “$89,170” and add in its place “$90,743”, remove “$1,503,470” and add in its place “$1,529,991”, remove “$79,874” and add in its place “$81,283”, and remove “$13,669” and add in its place “$13,910”.
d. Revise paragraph V.B.2.a.vi.
4. The authority citation for part 510 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-122, 130 Stat. 93 (22 U.S.C. 9201-9255); Pub. L. 115-44, 131 Stat 886 (22 U.S.C. 9201 note); E.O. 13466, 73 FR 36787, 3 CFR, 2008 Comp., p. 195; E.O. 13551, 75 FR 53837, 3 CFR, 2010 Comp., p. 242; E.O. 13570, 76 FR 22291, 3 CFR, 2011 Comp., p. 233; E.O. 13687, 80 FR 819, 3 CFR, 2015 Comp., p. 259; E.O. 13722, 81 FR 14943, 3 CFR, 2016 Comp., p. 446; E.O. 13810, 82 FR 44705, 3 CFR, 2017 Comp., p. 379.
5. In § 510.701(a)(2), remove “$302,584” and add in its place “$307,922”.
6. The authority citation for part 535 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 12170, 44 FR 65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279, 46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp., p. 112; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139.
7. In § 535.701(a)(2), remove “$302,584” and add in its place “$307,922”.
8. The authority citation for part 536 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.
9. In § 536.701(a)(2), remove “$302,584” and add in its place “$307,922”.
10. The authority citation for part 539 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200.
11. In § 539.701(a)(2), remove “$302,584” and add in its place “$307,922”.
12. The authority citation for part 541 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. Start Printed Page 198871705 note); E.O. 13288, 68 FR 11457, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 FR 71201, 3 CFR, 2005 Comp., p. 206; E.O. 13469, 73 FR 43841, 3 CFR, 2008 Comp., p. 1025.
13. In § 541.701(a)(2), remove “$302,584” and add in its place “$307,922”.
14. The authority citation for part 542 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp., p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O. 13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; E.O. 13573, 76 FR 29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 52209, 3 CFR 2011 Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 Comp., p. 243.
15. In § 542.701(a)(2), remove “$302,584” and add in its place “$307,922”.
16. The authority citation for part 544 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200; E.O. 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. 170.
17. In § 544.701(a)(2), remove “$302,584” and add in its place “$307,922”.
18. The authority citation for part 546 is revised to read as follows:
19. In § 546.701(a)(2), remove “$302,584” and add in its place “$307,922”.
20. The authority citation for part 547 is revised to read as follows:
21. In § 547.701(a)(2), remove “$302,584” and add in its place “$307,922”.
22. The authority citation for part 548 is revised to read as follows:
23. In § 548.701(a)(2), remove “$302,584” and add in its place “$307,922”.
24. The authority citation for part 549 is revised to read as follows:
25. In § 549.701(a)(2), remove “$302,584” and add in its place “$307,922”.
26. The authority citation for part 560 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939, 3 CFR, 2018 Comp., p. 854.
27. In § 560.701(a)(2), remove “$302,584” and add in its place “$307,922”.
28. The authority citation for part 561 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939, 3 CFR, 2018 Comp., p. 854; E.O. 13871, 84 FR 20761.
29. In § 561.701(a)(4), remove “$302,584” and add in its place “$307,922”.
30. The authority citation for part 566 is revised to read as follows:
End Authority Start Printed Page 19888
31. In § 566.701(b), remove “$302,584” and add in its place “$307,922”.
32. The authority citation for part 576 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. 13315, 68 FR 52315, 3 CFR, 2003 Comp., p. 252; E.O. 13350, 69 FR 46055, 3 CFR, 2004 Comp., p. 196; E.O. 13364, 69 FR 70177, 3 CFR, 2004 Comp., p. 236; E.O. 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 224; E.O. 13668, 79 FR 31019, 3 CFR, 2014 Comp., p. 248.
33. In § 576.701(a)(2), remove “$302,584” and add in its place “$307,922”.
34. The authority citation for part 583 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-328, Title XII, Subtitle F, 130 Stat. 2533 (22 U.S.C. 2656 note); E.O. 13818, 82 FR 60839, 3 CFR, 2017 Comp., p. 399.
35. In § 583.701(c), remove “$302,584” and add in its place “$307,922”.
36. The authority citation for part 584 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 112-208, 126 Stat. 1502 (22 U.S.C. 5811 note).
37. In § 584.701(a)(2), remove “$302,584” and add in its place “$307,922”.
38. The authority citation for part 588 is revised to read as follows:
39. In § 588.701(a)(2), remove “$302,584” and add in its place “$307,922”.
40. The authority citation for part 592 is revised to read as follows:
41. In § 592.601(a)(2), remove “$13,669” and add in its place “$13,910”.
42. The authority citation for part 594 is revised to read as follows:
43. In § 594.701(a)(2), remove “$302,584” and add in its place “$307,922”.
44. The authority citation for part 597 continues to read as follows:
45. In § 597.701(b)(3), remove “$79,874” and add in its place “$81,283”.
46. The authority citation for part 598 is revised to read as follows:
47. In § 598.701(a)(4), remove “$1,503,470” and add in its place “$1,529,991”.
[FR Doc. 2020-07509 Filed 4-8-20; 8:45 am]