Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments, 43021-43028 [2016-15376]

Download as PDF Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations not found it to be a major rule as defined in the Congressional Review Act. constitute a separate violation for the purposes of computing the applicable civil penalty. List of Subjects PART 13—PROGRAM FRAUD CIVIL REMEDIES 10 CFR Part 2 Administrative practice and procedure, Antitrust, Byproduct material, Classified information, Confidential business information; Freedom of information, Environmental protection, Hazardous waste, Nuclear energy, Nuclear materials, Nuclear power plants and reactors, Penalties, Reporting and recordkeeping requirements, Sex discrimination, Source material, Special nuclear material, Waste treatment and disposal. 10 CFR Part 13 Administrative practice and procedure, Claims, Fraud, Organization and function (Government agencies), Penalties. For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; 28 U.S.C. 2461 note; and 5 U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR parts 2 and 13. PART 2—AGENCY RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 2 is revised to read as follows: ■ Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81, 102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42 U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201, 2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846); Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42 U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act (5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note. Section 2.205(j) also issued under 28 U.S.C. 2461 note. 2. Amend § 2.205 by revising paragraph (j) to read as follows: ■ § 2.205 asabaliauskas on DSK3SPTVN1PROD with RULES * * * * (j) Amount. A civil monetary penalty imposed under Section 234 of the Atomic Energy Act of 1954, as amended, or any other statute within the jurisdiction of the Commission that provides for the imposition of a civil penalty in an amount equal to the amount set forth in Section 234, may not exceed $280,469 for each violation. If any violation is a continuing one, each day of such violation shall VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 Authority: 31 U.S.C. 3801 through 3812; 44 U.S.C. 3504 note. Section 13.3 also issued under 28 U.S.C. 2461 note. Section 13.13 also issued under 31 U.S.C. 3730. 4. Amend § 13.3 by revising paragraphs (a)(1)(iv) and (b)(1)(ii) to read as follows: ■ § 13.3 Basis for civil penalties and assessments. (a) * * * (1) * * * (iv) Is for payment for the provision of property or services which the person has not provided as claimed, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $10,781 for each such claim. * * * * * (b) * * * (1) * * * (ii) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $10,781 for each such statement. * * * * * Dated in Rockville, Maryland, this 20 day of June, 2016. For the Nuclear Regulatory Commission. Victor M. McCree, Executive Director for Operations. [FR Doc. 2016–15399 Filed 6–30–16; 8:45 am] BILLING CODE 7590–01–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Civil penalties. * 3. The authority citation for part 13 is revised to read as follows: ■ 12 CFR Parts 19 and 109 [Docket ID OCC–2016–0008] RIN 1557–AE04 Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments Office of the Comptroller of the Currency, Treasury. AGENCY: PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 43021 Interim final rule and request for comment. ACTION: The Office of the Comptroller of the Currency (OCC) is amending its rules of practice and procedure for national banks and its rules of practice and procedure in adjudicatory proceedings for Federal savings associations to publish the maximum amount, adjusted for inflation, of each civil money penalty within its jurisdiction to administer. These actions are required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. DATES: This rule is effective on August 1, 2016. Comments must be submitted by August 30, 2016. ADDRESSES: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments through the Federal eRulemaking Portal or email, if possible. Please use the title ‘‘Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments’’ to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: • Federal eRulemaking Portal— ‘‘Regulations.gov’’: Go to www.regulations.gov. Enter ‘‘Docket ID OCC–2016–0008’’ in the Search Box and click ‘‘Search.’’ Click on ‘‘Comment Now’’ to submit public comments. • Click on the ‘‘Help’’ tab on the Regulations.gov home page to get information on using Regulations.gov, including instructions for submitting public comments. • Email: regs.comments@ occ.treas.gov. • Mail: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Suite 3E–218, Mail Stop 9W–11, Washington, DC 20219. • Hand Delivery/Courier: 400 7th Street SW., Suite 3E–218, Mail Stop 9W–11, Washington, DC 20219. • Fax: (571) 465–4326. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘Docket ID OCC–2016–0008’’ in your comment. In general, OCC will enter all comments received into the docket and publish them on the Regulations.gov Web site without change, including any business or personal information that you provide such as name and address information, email addresses, or phone numbers. Comments received, including attachments and other supporting SUMMARY: E:\FR\FM\01JYR1.SGM 01JYR1 43022 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations asabaliauskas on DSK3SPTVN1PROD with RULES materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. You may review comments and other related materials that pertain to this rulemaking action by any of the following methods: • Viewing Comments Electronically: Go to www.regulations.gov. Enter ‘‘Docket ID OCC–2016–0008’’ in the Search box and click ‘‘Search.’’ Click on ‘‘Open Docket Folder’’ on the right side of the screen and then ‘‘Comments.’’ Comments can be filtered by clicking on ‘‘View All’’ and then using the filtering tools on the left side of the screen. • Click on the ‘‘Help’’ tab on the Regulations.gov home page to get information on using Regulations.gov. Supporting materials may be viewed by clicking on ‘‘Open Docket Folder’’ and then clicking on ‘‘Supporting Documents.’’ The docket may be viewed after the close of the comment period in the same manner as during the comment period. • Viewing Comments Personally: You may personally inspect and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649–6700 or, for persons who are deaf or hard of hearing, TTY, (202) 649– 5597. Upon arrival, visitors will be required to present valid governmentissued photo identification and submit to security screening in order to inspect and photocopy comments. FOR FURTHER INFORMATION CONTACT: Jean Campbell, Counsel, Legislative and Regulatory Activities Division, (202) 649–5490, or, for persons who are deaf or hard of hearing, TTY, (202) 649– 5597, or Alexander Abramovich, Attorney, Enforcement and Compliance Division, (202) 649–6200, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219. SUPPLEMENTARY INFORMATION: I. Background On November 2, 2015, Congress enacted the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act),1 which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act).2 The 1 Public Law 114–74, Title VII, section 701(b), Nov. 2, 2015, 129 Stat. 599, codified at 28 U.S.C. 2461 note. 2 See Public Law 101–410, Oct. 5, 1990, 104 Stat. 890, codified at 28 U.S.C. 2461 note. VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 Inflation Adjustment Act required the OCC and other Federal agencies with civil money penalty (CMP) authority to publish by regulation the inflationadjusted maximum assessment for each CMP authorized by a law that the agency has jurisdiction to administer.3 Key features of the Inflation Adjustment Act included requiring such agencies to make inflation adjustments at least once every four years following any initial adjustment, capping the initial inflation adjustment increase at 10 percent, and imposing rounding rules that limited increases based on the amount of the penalty. The purpose of the 2015 Act is to: (i) Establish a mechanism to regularly adjust CMPs for inflation; (ii) maintain the deterrent effect of CMPs and promote compliance with the law; and (iii) improve the collection of CMPs by the Federal government.4 Key provisions of the 2015 Act include simplifying the process for calculating the inflation increase, eliminating the complex rounding rules, and requiring Federal agencies to adjust penalties on an annual basis. The 2015 Act requires agencies to increase the level of each maximum CMP, or the range of minimum and maximum CMPs, with an initial ‘‘catchup’’ adjustment through an interim final rule published in the Federal Register no later than July 1, 2016, with an effective date no later than August 1, 2016.5 Under the 2015 Act, agencies must calculate initial catch-up adjustments based on the percentage increase in the October 2015 Consumer Price Index for all Urban Consumers (CPI–U) 6 from the October CPI–U of the year the CMP was established or last adjusted by law. However, for the catchup adjustment, the amount of the initial increase may not exceed 150 percent of the CMP in effect on the date the 2015 3 The 2015 Act defines a ‘‘civil monetary penalty’’ to mean ‘‘any penalty, fine, or other sanction that is for a specific monetary amount as provided by Federal law; or has a maximum amount provided for by Federal law; and is assessed or enforced by an agency pursuant to Federal law; and is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts.’’ 28 U.S.C. 2461 note, section 3(2). Thus, a penalty based on another measure, such as a percentage of total assets, need not be adjusted. 4 See 28 U.S.C. 2461 note, section 2(b). 5 The 2015 Act, however, provides a mechanism for an agency, with the concurrence of the Office of Management and Budget (OMB), to reduce a catch-up adjustment if the agency demonstrates the required increase of the penalty or penalty range would have a negative economic impact or that social costs would outweigh the benefits. 6 This index is published by the Department of Labor. PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 Act was enacted (i.e., November 2, 2015). The 2015 Act requires agencies to publish subsequent annual adjustments in the Federal Register no later than January 15 of each year, beginning on January 15, 2017. The 2015 Act also requires agencies to calculate subsequent annual inflation adjustments based on the percentage increase in the CPI–U for the month of October preceding the date of the adjustment from the prior year’s October CPI–U and to round all adjustments to the nearest dollar. The 2015 Act also requires OMB to issue guidance to Federal agencies on implementing the required inflation adjustments. The OMB guidance (OMB Guidance), issued February 24, 2016, provides the multiplier (i.e., the inflation adjustment factor agencies must use to adjust their penalties), stepby-step instructions on how to calculate the catch-up adjustments, and other relevant information.7 The OCC last evaluated and adjusted the maximum amount of CMPs applicable to national banks and Federal savings associations in 2012. An interim final rule was published in the Federal Register on November 6, 2012,8 and became effective on December 6, 2012. The OCC published a technical amendment to this rule in the Federal Register on December 28, 2012,9 that became effective on December 28, 2012. II. Description of the Interim Final Rule A. Initial Inflation Adjustment This interim final rule adjusts for inflation the maximum assessment for each CMP that the OCC has jurisdiction to impose in accordance with the 2015 Act and the OMB Guidance. The OCC is incorporating these adjustments into the charts that are set forth at 12 CFR 19.240(a) with respect to national banks (national bank chart) and 12 CFR 109.103(c) with respect to Federal savings associations (Federal savings association chart). Each chart identifies the statutes that authorize the OCC to assess CMPs, describes the different tiers of penalties provided in each statute (as applicable), and sets out the inflation-adjusted maximum penalty that the OCC may impose pursuant to each statutory provision. The OCC calculated the amounts in the charts in accordance with the OMB Guidance, as follows. 7 Office of Management and Budget Memorandum, M–16–06 (February 24, 2016), available at: https://www.whitehouse.gov/sites/ default/files/omb/memoranda/2016/m-16-06.pdf. 8 77 FR 66529. 9 77 FR 76354. E:\FR\FM\01JYR1.SGM 01JYR1 asabaliauskas on DSK3SPTVN1PROD with RULES Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations In order to calculate the catch-up adjustment, the OMB Guidance instructs agencies to identify, for each penalty, the year and corresponding amount(s) for which the maximum penalty level or range of minimum and maximum penalties was 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 the Inflation Adjustment Act. Thus, this step of the calculation excludes prior inflation adjustments under the Inflation Adjustment Act.10 The OMB Guidance then directs agencies to modify that penalty level or range based on the CPI–U for the month of October 2015, not seasonally adjusted. OMB calculated the multiplier that agencies must apply in order to adjust the penalty level or range of penalty levels, based on the year the penalty was established or last adjusted by statute or regulation, and provided these multipliers for the years 1914 through 2015.11 Agencies must apply the multiplier and round all penalty levels to the nearest dollar. However, because the 2015 Act caps the amount of the initial catch-up adjustment at 150 percent, the OMB Guidance states that each adjusted penalty cannot exceed 250 percent of the penalty level in effect on November 2, 2015.12 The 2015 Act states that agencies are required to apply the new penalty levels to CMPs that are assessed after the effective date of the rule. The OMB Guidance clarifies that inflation adjustments calculated and assessed pursuant to the 2015 Act adjust penalties prospectively and do not retrospectively change penalties previously assessed or enforced that the agency is actively collecting or has collected.13 The worksheets below show how the OCC calculated the new penalty levels for national banks and Federal savings associations. Only two penalties, those provided in 12 U.S.C. 1832(c) and 1884, were capped at 250 percent of the amount of the penalty on November 2, 2015. The OCC did not exercise the discretion it is provided under the 2015 Act to seek a reduced catch-up adjustment determination from OMB. Such a request would have required the OCC to demonstrate that the penalty 10 See OMB Guidance, at 3. penalties established or last adjusted prior to 1914, the OMB Guidance states that agencies should use the multiplier for 1914. See id., Table A, at 6. 12 See 28 U.S.C. 2461 note, section 5(b)(2)(C); see also OMB Guidance, at 3. 13 See OMB Guidance, at 4. 11 For VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 would have a negative economic impact, or that the social costs of the adjustment would outweigh the benefits.14 As the penalties reflected in the national bank chart and Federal savings association chart are, for the most part, maximum penalties, the OCC may impose lesser penalties, if warranted. Accordingly, the OCC concluded that a reduced catch-up adjustment determination was not necessary. B. Penalties Added to the National Bank Chart and Federal Savings Association Chart This interim final rule adjusts the following additional penalties that are being incorporated into the national bank chart and Federal savings association chart. First, both charts include a new CMP, provided in 15 U.S.C. 1639e(k), created by the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).15 The new CMP makes it unlawful for a creditor who extends credit, or provides any services for a consumer credit transaction secured by the consumer’s principal dwelling, to engage in any act or practice that violates the regulation implementing the appraisal independence requirements in section 1472 of the Dodd-Frank Act. Pursuant to the Dodd-Frank Act, the maximum daily penalty for the first violation is $10,000 and the maximum daily penalty for subsequent violations is $20,000. The adjusted maximum daily penalties will be $10,875 and $21,749, respectively. The OCC also is adjusting the penalty provided in 12 U.S.C. 481, an existing CMP that previously was not included in the chart. Twelve U.S.C. 481 authorizes the OCC to assess on a national bank a maximum daily penalty of no more than $5,000 if any affiliate of a national bank refuses to permit an examiner to make an examination of such affiliate or refuses to provide any information required in the course of such an examination. The adjusted maximum daily penalty will be $9,468. In addition, the OCC is adjusting the penalties provided in 12 U.S.C. 1832(c), 12 U.S.C. 1972(2)(F), and 15 U.S.C. 78u– 2(b), three CMPs that are in the national bank chart, but were not previously included in the chart applicable to Federal savings associations. Twelve U.S.C. 1832(c) makes it unlawful for a depository institution to violate the restrictions on withdrawals by negotiable or transferable instruments 14 See 28 U.S.C. 2461 note, section 4(c) and OMB Guidance, at 3. 15 See Dodd-Frank Act, Public Law 111–203, Title XIV, section 1472, July 21, 2010, 124 Stat. 2187, codified at 15 U.S.C. 1639e(k). PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 43023 for transfers to third parties. The penalty when first established was $1,000 per violation. The adjusted penalty will be $2,750 per violation. Twelve U.S.C 1972(2)(F) makes it unlawful for a savings association to violate anti-tying restrictions regarding correspondent accounts, unsafe or unsound practices, or breach of fiduciary duty. When first established, the maximum daily penalty was: $5,000 for a tier 1 violation; $25,000 for a tier 2 violation; $1,000,000 for a tier 3 violation by a person other than a bank; and the lesser of $1,000,000 or 1 percent of total assets for a tier 3 violation by a bank. The adjusted maximum daily penalties will be: $9,468 for a tier 1 violation; $47,340 for a tier 2 violation; $1,893,610 for a tier 3 violation by a person other than a bank; and the lesser of $1,893,610 or 1 percent of total assets for a tier 3 violation by a bank. Fifteen U.S.C. 78u– 2(b) provides penalties for violations of various provisions of the Securities Act,16 the Securities Exchange Act,17 the Investment Company Act,18 and the Investment Advisers Act,19 as applicable. When first established, the maximum penalty per violation was: $5,000 for a tier 1 violation by a natural person; $50,000 for a tier 1 violation by any other person; $50,000 for a tier 2 violation by a natural person; $250,000 for a tier 2 violation by any other person; $100,000 for a tier 3 violation by a natural person; and $500,000 for a tier 3 violation by any other person. The adjusted maximum penalties will be: $8,907 for tier 1 (natural person); $89,078 for tier 1 (other person); $89,078 for tier 2 (natural person); $445,390 for tier 2 (other person); $178,156 for tier 3 (natural person); and $890,780 for tier 3 (other person). C. Other Technical Changes to the National Bank Chart and Federal Savings Association Chart The OCC is making several minor technical edits to the national bank chart and Federal savings association chart. The OCC is amending the charts by adding a footnote to each chart, where appropriate, to clarify that for certain penalties the applicable statute provides that the penalty will be the lesser of a dollar adjusted penalty 16 Securities Act of 1933, Title I of Public Law 73– 22, enacted May 27, 1933, 48 Stat. 74, codified at 15 U.S.C. 77a, et seq. 17 Securities Exchange Act of 1934, Public Law 73–291, enacted June 6, 1934, 48 Stat. 881, codified at 15 U.S.C. 78a, et seq. 18 Investment Company Act of 1940, Public Law 76–768, enacted Aug. 22, 1940, 54 Stat. 789, codified at 15 U.S.C. 80a–1, et seq. 19 Investment Advisers Act of 1940, Public Law 76–768, enacted Aug. 22, 1940, 54 Stat. 847, codified at 15 U.S.C. 80b–1, et seq. E:\FR\FM\01JYR1.SGM 01JYR1 43024 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations amount or 1 percent of the bank’s total assets. The text of the new Federal savings association chart no longer includes reference to 12 U.S.C. 3349(b). This penalty is an example of penalties that do not themselves provide the amount of the penalty but rather crossreference 12 U.S.C. 1818. Instead, the OCC is adding a footnote to the national bank chart (footnote 3) and the Federal savings association chart (footnote 3), where appropriate, explaining that statutes cross-referencing 12 U.S.C. 1818 are adjusted automatically when the penalty in section 1818 is adjusted for inflation. The interim final rule also deletes §§ 19.240(c) and 109.103(d), which provided an effective date of July 6, 2012, for the amount of the penalties for violations of 42 U.S.C. 4012a(f)(5), as all the penalty amounts on the revised national bank chart and Federal savings association chart are now effective on the same date. Finally, consistent with the 2015 Act, revised §§ 19.240(b) and 109.103(c) state that the penalties in the charts at §§ 19.240(a) and 109.103(c) apply only to penalties assessed on or after the effective date of this interim final rule, August 1, 2016. 2015 WORKSHEET—NATIONAL BANKS Amount when established or last adjusted Inflation factor Amount of increase (rounded to nearest dollar) Adjusted maximum penalty (after rounding and comparison calculation) (in dollars) 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 2004 5,000 25,000 1,000,000 2,000 20,000 1,000,000 5,000 5,000 25,000 1,000,000 5,000 25,000 1,000,000 5,000 25,000 1,000,000 250,000 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.24588 9,468 47,340 1,893,610 3,787 37,872 1,893,610 9,468 9,468 47,340 1,893,610 9,468 47,340 1,893,610 9,468 47,340 1,893,610 311,470 9,468 47,340 1,893,610 3,787 37,872 1,893,610 9,468 9,468 47,340 1,893,610 9,468 47,340 1,893,610 9,468 47,340 1,893,610 311,470 1,100 110 7,500 37,500 1,425,000 37,500 3,200 32,000 1,425,000 1,100 1973 1968 1989 1989 1989 1991 1991 1991 1991 1983 1,000 100 5,000 25,000 1,000,000 25,000 2,000 20,000 1,000,000 1,000 5.21575 6.73762 1.89361 1.89361 1.89361 1.73099 1.73099 1.73099 1.73099 2.35483 5,216 674 9,468 47,340 1,893,610 43,275 3,462 34,620 1,730,990 2,355 20 2,750 9,468 47,340 1,893,610 43,275 3,462 34,620 1,730,990 2,355 7,500 1990 5,000 1.78156 8,908 8,908 70,000 1990 50,000 1.78156 89,078 89,078 70,000 1990 50,000 1.78156 89,078 89,078 350,000 1990 250,000 1.78156 445,390 445,390 140,000 1990 100,000 1.78156 178,156 178,156 700,000 1990 500,000 1.78156 890,780 890,780 10,000 20,000 2010 2010 10,000 20,000 1.08745 1.08745 10,875 21,749 10,875 21,749 2,000 2012 2,000 1.02819 2,056 2,056 Maximum penalty on Nov. 2, 2015 (in dollars) U.S. Code citation Tier (if applicable) 12 U.S.C. 93(b) ..... Tier 1 .................... Tier 2 .................... Tier 3 .................... Tier 1 .................... Tier 2 .................... Tier 3 .................... Per day ................. Tier 1 .................... Tier 2 .................... Tier 3 .................... Tier 1 .................... Tier 2 .................... Tier 3 .................... Tier 1 .................... Tier 2 .................... Tier 3 .................... ............................... 7,500 37,500 1,425,000 3,200 32,000 1,425,000 5,000 7,500 37,500 1,425,000 7,500 37,500 1,425,000 7,500 37,500 1, 425,000 275,000 ............................... ............................... Tier 1 .................... Tier 2 .................... Tier 3 .................... ............................... Tier 1 .................... Tier 2 .................... Tier 3 .................... ............................... Tier 1 (natural person). Tier 1 (other person). Tier 2 (natural person). Tier 2 (other person). Tier 3 (natural person). Tier 3 (other person). First violation ........ Subsequent violation. Per violation .......... 12 U.S.C. 164 ....... 12 U.S.C. 481 ....... 12 U.S.C. 504 ....... 12 U.S.C. 1817(j)(16). 12 U.S.C. 1818(i)(2). 12 U.S.C. 1820(k)(6)(A)(ii). 12 U.S.C. 1832(c) 12 U.S.C. 1884 ..... 12 U.S.C. 1972(2)(F). 12 U.S.C. 3110(a) 12 U.S.C. 3110(c) 12 U.S.C. 3909(d)(1). 15 U.S.C. 78u–2(b) asabaliauskas on DSK3SPTVN1PROD with RULES 15 U.S.C. 1639e(k) 42 U.S.C. 4012a(f)(5). VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 PO 00000 Frm 00042 Year established or last adjusted Fmt 4700 Sfmt 4700 E:\FR\FM\01JYR1.SGM 01JYR1 20 275 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 43025 2015 WORKSHEET—FEDERAL SAVINGS ASSOCIATIONS U.S. Code citation 12 U.S.C. 1464(v) 12 U.S.C. 1467(d) 12 U.S.C. 1467a(r) 12 U.S.C. 1817(j)(16). 12 U.S.C. 1818(i)(2). 12 U.S.C. 1820(k)(6)(A)(ii). 12 U.S.C. 1832(c) 12 U.S.C. 1884 ..... 12 U.S.C. 1972(2)(F). 15 U.S.C. 78u–2(b) 15 U.S.C. 1639e(k) 42 U.S.C. 4012a(f)(5). Tier (if applicable) Maximum penalty on Nov. 2, 2015 (in dollars) Amount when established or last adjusted Amount of increase (rounded to nearest dollar) 3,200 32,500 1,425,500 7,500 3,200 32,500 1,425,000 7,500 37,500 1,425,000 7,500 37,500 1,375,000 275,000 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 2004 2,000 20,000 1,000,000 5,000 2,000 20,000 1,000,000 5,000 25,000 1,000,000 5,000 25,000 1,000,000 250,000 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.89361 1.24588 3,787 37,872 1,893,610 9,468 3,787 37,872 1,893,610 9,468 47,340 1,893,610 9,468 47,340 1,893,610 311,470 3,787 37,872 1,893,610 9,468 3,787 37,872 1,893,610 9,468 47,340 1,893,610 9,468 47,340 1,893,610 311,470 ............................... ............................... Tier 1 .................... Tier 2 .................... Tier 3 .................... Tier 1 (natural person). Tier 1 (other person). Tier 2 (natural person). Tier 2 (other person). Tier 3 (natural person). Tier 3 (other person). First violation ........ Subsequent violations. Per violation .......... 1,000 110 5,000 25,000 1,000,000 5,000 1973 1968 1989 1989 1989 1990 1,000 100 5,000 25,000 1,000,000 5,000 5.21575 6.73762 1.89361 1.89361 1.89361 1.78156 5,216 674 9,468 47,340 1,893,610 8,908 21 2,500 9,468 47,340 1,893,610 8,908 50,000 1990 50,000 1.78156 89,078 89,078 50,000 1990 50,000 1.78156 89,078 89,078 250,000 1990 250,000 1.78156 445,390 445,390 100,000 1990 100,000 1.78156 178,156 178,156 500,000 1990 500,000 1.78156 890,780 890,780 10,000 20,000 2010 2010 10,000 20,000 1.08745 1.08745 10,875 21,749 10,875 21,749 2,000 2012 2,000 1.02819 2,056 2,056 encouraged to identify any technical issues raised by the rule, including identifying any CMPs that may have been unintentionally omitted from this rulemaking. The 2015 Act requires the OCC to adjust the CMPs that it has jurisdiction to administer through an interim final rule. The 2015 Act also dictates the method by which the amount of the initial catch-up adjustment for each CMP must be calculated. As noted in the OMB Guidance, agencies are not required to complete a notice-andcomment process prior to publication of this interim final rule in the Federal Register.22 However, the OCC invites comments on all aspects of this interim final rule. Commenters are specifically Section 302 of the Riegle Community Development and Regulatory Improvement Act of 1994 23 (RCDRIA) requires that the effective date of new regulations and amendments to regulations that impose additional reporting, disclosures, or other new 20 Because the 2015 Act caps the amount of the initial inflation adjustment (catch-up adjustment) at 150 percent, the catch-up adjustment cannot exceed 250 percent of the penalty level(s) in effect on the date the 2015 Act was enacted (i.e., November 2, 2015). 21 Because the 2015 Act caps the amount of the initial inflation adjustment (catch-up adjustment) at 150 percent, the catch-up adjustment cannot exceed 250 percent of the penalty level(s) in effect on the date the 2015 Act was enacted (i.e., November 2, 2015). VerDate Sep<11>2014 Inflation factor Tier 1 .................... Tier 2 .................... Tier 3 .................... ............................... Tier 1 .................... Tier 2 .................... Tier 3 .................... Tier 1 .................... Tier 2 .................... Tier 3 .................... Tier 1 .................... Tier 2 .................... Tier 3 .................... ............................... III. Request for Comments asabaliauskas on DSK3SPTVN1PROD with RULES Year established or last adjusted Adjusted maximum penalty (after rounding and comparison calculation) (in dollars) 19:31 Jun 30, 2016 Jkt 238001 IV. Regulatory Analysis A. Delayed Effective Date PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 21 275 requirements on insured depository institutions shall be the first day of a calendar quarter that begins on or after the date the regulations are published in final form. 12 U.S.C. 4802(b)(1). The RCDRIA does not apply to this interim final rule because the rule merely increases the amount of CMPs that already exist and does not impose any additional reporting, disclosures, or other new requirements. The Administrative Procedure Act generally requires an agency to publish a rule 30 days prior to its effective date.24 This interim final rule satisfies 22 See OMB Guidance, at 3. U.S.C. 4802. 24 5 U.S.C. 553(d). 23 12 E:\FR\FM\01JYR1.SGM 01JYR1 43026 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations that requirement. It also satisfies the requirement in the 2015 Act to publish the initial interim final rule no later than July 1, 2016, with an effective date no later than August 1, 2016. B. Regulatory Flexibility Act The Regulatory Flexibility Act applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).25 Because the 2015 Act requires agencies’ catch-up adjustments to be made through an interim final rule, the OCC is not publishing a general notice of proposed rulemaking. Thus, the Regulatory Flexibility Act does not apply to this interim final rule. C. Unfunded Mandates Reform Act of 1995 Section 202 of the Unfunded Mandates Reform Act of 1995 26 requires that an agency prepare a budgetary impact statement before promulgating any rule likely to result in a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector of $100 million or more, as adjusted for inflation, in any one year. The Unfunded Mandates Reform Act only applies when an agency issues a general notice of proposed rulemaking. Because the OCC is not publishing a notice of proposed rulemaking, this interim final rule is not subject to section 202 of the Unfunded Mandates Reform Act. List of Subjects 12 CFR Part 19 Administrative practice and procedure, Crime, Equal access to justice, Investigations, National banks, Penalties, Securities. Authority and Issuance For the reasons set out in the preamble, parts 19 and 109 of chapter I of title 12 of the Code of Federal Regulations are amended as follows: PART 19—RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 19 is revised to read as follows: ■ Authority: 5 U.S.C. 504, 554–557; 12 U.S.C. 93(b), 93a, 164, 481, 504, 1817, 1818, 1820, 1831m, 1831o, 1832, 1884, 1972, 3102, 3108(a), 3110, 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o–4(c), 78o–5, 78q–1, 78s, 78u, 78u–2, 78u–3, 78w, and 1639e; 28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a. 2. Section 19.240 is revised to read as follows: ■ 12 CFR Part 109 § 19.240 Administrative practice and procedure, Federal savings associations, Penalties. (a) The maximum amount of each civil money penalty within the OCC’s jurisdiction is set forth as follows: Inflation adjustments. Maximum penalty amount (in dollars) 1 U.S. Code citation Description and tier (if applicable) 12 U.S.C. 93(b) ................................ Violation of Various Provisions of the National Bank Act: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Reporting Requirements: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Refusal of Affiliate to Cooperate in Examination (national bank) ......................................... Violation of Various Provisions of the Federal Reserve Act: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Change in Bank Control Act: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Post-Employment Restrictions: Per violation .......................................................................................................................... Violation of Withdrawals by Negotiable or Transferable Instrument for Transfers to Third Parties: Per violation .......................................................................................................................... Violation of the Bank Protection Act ..................................................................................... Violation of Anti-Tying Provisions regarding Correspondent Accounts, Unsafe or Unsound Practices, or Breach of Fiduciary Duty: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Various Provisions of the International Banking Act (Federal Branches and Agencies): Violation of Reporting Requirements of the International Banking Act (Federal Branches and Agencies): Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of International Lending Supervision Act ............................................................... 12 U.S.C. 164 .................................. 12 U.S.C. 481 .................................. 12 U.S.C. 504 .................................. 12 U.S.C. 1817(j)(16) ...................... 12 U.S.C. 1818(i)(2) 3 ...................... 12 U.S.C. 1820(k)(6)(A)(ii) ............... 12 U.S.C. 1832(c) ............................ asabaliauskas on DSK3SPTVN1PROD with RULES 12 U.S.C. 1884 ................................ 12 U.S.C. 1972(2)(F) ....................... 12 U.S.C. 3110(a) ............................ 12 U.S.C. 3110(c) ............................ 12 U.S.C. 3909(d)(1) ....................... 25 5 U.S.C. 601(2). VerDate Sep<11>2014 16:44 Jun 30, 2016 26 2 Jkt 238001 PO 00000 U.S.C. 1532. Frm 00044 Fmt 4700 Sfmt 4700 E:\FR\FM\01JYR1.SGM 01JYR1 9,468 47,340 2 1,893,610 3,787 37,872 2 1,893,610 9,468 9,468 47,340 2 1,893,610 9,468 47,340 2 1,893,610 9,468 47,340 2 1,893,610 311,470 2,750 275 9,468 47,340 2 1,893,610 43,275 3,462 34,620 2 1,730,990 2,355 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations Maximum penalty amount (in dollars) 1 U.S. Code citation Description and tier (if applicable) 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 person)—Per violation ................................................................................... Tier 1 (other person)—Per violation ..................................................................................... Tier 2 (natural person)—Per violation ................................................................................... Tier 2 (other person)—Per violation ..................................................................................... Tier 3 (natural person)—Per violation ................................................................................... Tier 3 (other person)—Per violation ..................................................................................... Violation of Appraisal Independence Requirements: First violation ......................................................................................................................... Subsequent violations ........................................................................................................... Flood Insurance: Per violation .......................................................................................................................... 15 U.S.C. 1639e(k) .......................... 42 U.S.C. 4012a(f)(5) ...................... (b) The maximum amount of each civilmoney penalty set forth in the chart in paragraph (a) of this section applies to penalties assessed on or after August 1, 2016. Authority: 5 U.S.C. 504, 554–557; 12 U.S.C. 1464, 1467, 1467a, 1468, 1817, 1818, 1820(k), 1829(e), 1832, 1884, 1972, 3349, 4717, 5412(b)(2)(B); 15 U.S.C. 78(l), 78o–5, 78u–2, 1639e; 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 4012a. PART 109—RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY PROCEEDINGS § 109.103 ■ 10,875 21,749 2,056 (c) Maximum amount of civil money penalties. The maximum amount of each civil money penalty in the chart below applies to penalties assessed on or after August 1, 2016: 4. Section 109.103 is amended by revising paragraph (c) to read as follows and by removing paragraph (d): * * Civil money penalties. * * * Maximum penalty amount (in dollars) 1 U.S. Code citation CMP description 12 U.S.C. 1464(v) ............................ Reports of Condition: 1st Tier .................................................................................................................................. 2nd Tier ................................................................................................................................. 3rd Tier .................................................................................................................................. Refusal of Affiliate to Cooperate in Examination .................................................................. Late/Inaccurate Reports: 1st Tier .................................................................................................................................. 2nd Tier ................................................................................................................................. 3rd Tier .................................................................................................................................. Violation of Change in Bank Control Act: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violation of Post-Employment Restrictions: Per violation .......................................................................................................................... Violation of Withdrawals by Negotiable or Transferable Instruments for Transfers to Third Parties: Per violation .......................................................................................................................... Violation of the Bank Protection Act ..................................................................................... Violation of Provisions regarding Correspondent Accounts, Unsafe or Unsound Practices, or Breach of Fiduciary Duty: Tier 1 ..................................................................................................................................... Tier 2 ..................................................................................................................................... Tier 3 ..................................................................................................................................... Violations of Various Provisions of the Securities Act, the Securities Exchange Act, the Investment Company Act, or the Investment Advisers Act: 1st Tier (natural person)—Per violation ................................................................................ 1st Tier (other person)—Per violation ................................................................................... 12 U.S.C. 1467(d) ............................ 12 U.S.C. 1467a(r) .......................... 12 U.S.C. 1817(j)(16) ...................... 12 U.S.C. 1818(i)(2) 3 ...................... 12 U.S.C. 1820(k)(6)(A)(ii) ............... 12 U.S.C. 1832(c) ............................ 12 U.S.C. 1884 ................................ 12 U.S.C. 1972(2)(F) ....................... asabaliauskas on DSK3SPTVN1PROD with RULES 8,908 89,078 89,078 445,390 178,156 890,780 ■ 3. The authority citation for part 109 is revised to read as follows: 43027 15 U.S.C. 78u-2(b) .......................... 1 The maximum penalty amount is per day, unless otherwise indicated. VerDate Sep<11>2014 19:31 Jun 30, 2016 Jkt 238001 2 The maximum penalty amount for a national bank is the lesser of this amount or 1 percent of total assets. PO 00000 Frm 00045 Fmt 4700 Sfmt 4700 3,787 37,872 2 1,893,610 9,468 3,787 37,872 2 1,893,610 9,468 47,340 2 1,893,610 9,468 47,340 2 1,893,610 311,470 2,500 275 9,468 47,340 2 1,893,610 8,908 89,078 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, 1639e(k), 1693o, 1681s, 1691c, and 1692l. E:\FR\FM\01JYR1.SGM 01JYR1 43028 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations Maximum penalty amount (in dollars) 1 U.S. Code citation CMP description 15 U.S.C. 1639e(k) .......................... 2nd Tier (natural person)—Per violation ............................................................................... 2nd Tier (other person)—Per violation ................................................................................. 3rd Tier (natural person)—Per violation ............................................................................... 3rd Tier (other person)—Per violation .................................................................................. Violation of Appraisal Independence Requirements: First violation ......................................................................................................................... Subsequent violations ........................................................................................................... Flood Insurance: Per violation .......................................................................................................................... 42 U.S.C. 4012a(f)(5) ...................... Dated: June 23, 2016. Thomas J. Curry, Comptroller of the Currency. [FR Doc. 2016–15376 Filed 6–30–16; 8:45 am] BILLING CODE 4810–33–P FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1209 and 1250 RIN 2590–AA88 Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment Federal Housing Finance Agency. ACTION: Interim final rule. AGENCY: The Federal Housing Finance Agency (FHFA) is issuing this interim final rule amending its Rules of Practice and Procedure and other agency regulations to adjust each civil money penalty within its jurisdiction to account for inflation, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. If, prior to the effective date of the interim final rule, FHFA does not receive any comments from which FHFA concludes that the rule should be revised, this rule will become final without further action by FHFA. DATES: Effective date: August 1, 2016. Comment date: Comments on the interim final rule must be received prior to August 1, 2016. ADDRESSES: You may submit your comments, identified by regulatory information number (RIN) 2590–AA88, by any of the following methods: asabaliauskas on DSK3SPTVN1PROD with RULES SUMMARY: 1 The maximum penalty amount is per day, unless otherwise indicated. 2 The maximum penalty amount for a savings association is the lesser of this amount or 1 percent of total assets. 3 These amounts also apply to statutes that crossreference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 U.S.C. 1607, 1639e(k), 1693o, 1681s, 1691c, and 1692l. VerDate Sep<11>2014 19:31 Jun 30, 2016 Jkt 238001 Agency Web site: www.fhfa.gov/openfor-comment-or-input. Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. If you submit your comments to the Federal eRulemaking Portal, please also send it by email to FHFA at RegComments@FHFA.gov to ensure timely receipt by the agency. Please include ‘‘RIN 2590–AA88’’ in the subject line of the message. Hand Delivery/Courier: The hand delivery address is: Alfred M. Pollard, General Counsel, Attention: Comments/ RIN 2590–AA88, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. The package should be delivered to the Seventh Street entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 p.m. U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590–AA88, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. Copies of all comments will be posted without change, including any personal information you provide, such as your name, address, or phone number, on the FHFA Internet Web site at https:// www.fhfa.gov. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649–3804. FOR FURTHER INFORMATION CONTACT: Stephen E. Hart, Deputy General Counsel, at (202) 649–3053, Stephen.Hart@fhfa.gov, or Frank R. Wright, Senior Counsel, at (202) 649– 3087, Frank.Wright@fhfa.gov (not tollfree numbers); Federal Housing Finance PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 89,078 445,390 178,156 890,780 10,875 21,749 2,056 Agency, 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is: (800) 877–8339 (TDD only). SUPPLEMENTARY INFORMATION: I. Background FHFA is an independent agency of the Federal government and the financial safety and soundness regulator of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), the Federal Home Loan Banks (collectively, the Banks), and the Banks’ Office of Finance under authority granted by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act).1 FHFA oversees the Enterprises and Banks (collectively, the regulated entities) to ensure that they operate in a safe and sound manner and maintain liquidity in the housing finance market in accordance with applicable laws, rules, and regulations. To that end, FHFA is vested with broad supervisory discretion and specific civil administrative enforcement powers, similar to such authority granted by Congress to the Federal bank regulatory agencies.2 Section 1376 of the Safety and Soundness Act (12 U.S.C. 4636) empowers FHFA to impose civil money penalties under specific conditions. FHFA’s Rules of Practice and Procedure regulation (12 CFR part 1209) govern cease and desist proceedings, civil money penalty assessment proceedings, and other administrative adjudications.3 FHFA’s Flood Insurance regulation (12 CFR part 1250) governs flood insurance responsibilities as they pertain to the 1 See Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Public Law 102– 550, 106 Stat. 4078 (Oct. 28, 1992) as amended by the Federal Housing Finance Regulatory Reform Act of 2008, Public Law 110–289, 122 Stat. 2654, sections 1101 et seq. (July 30, 2008). 2 See Safety and Soundness Act, 12 U.S.C. 4513 and 4631–4641. 3 See 12 CFR part 1209. E:\FR\FM\01JYR1.SGM 01JYR1

Agencies

[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43021-43028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15376]

=======================================================================
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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 19 and 109

[Docket ID OCC-2016-0008]
RIN 1557-AE04

Rules of Practice and Procedure; Rules of Practice and Procedure
in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments

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

ACTION: Interim final rule and request for comment.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is
amending its rules of practice and procedure for national banks and its
rules of practice and procedure in adjudicatory proceedings for Federal
savings associations to publish the maximum amount, adjusted for
inflation, of each civil money penalty within its jurisdiction to
administer. These actions are required under the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

DATES: This rule is effective on August 1, 2016. Comments must be
submitted by August 30, 2016.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments
through the Federal eRulemaking Portal or email, if possible. Please
use the title ``Rules of Practice and Procedure; Rules of Practice and
Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation
Adjustments'' to facilitate the organization and distribution of the
comments. You may submit comments by any of the following methods:
Federal eRulemaking Portal--``Regulations.gov'': Go to
www.regulations.gov. Enter ``Docket ID OCC-2016-0008'' in the Search
Box and click ``Search.'' Click on ``Comment Now'' to submit public
comments.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Email: regs.comments@occ.treas.gov.
Mail: Legislative and Regulatory Activities Division,
Office of the Comptroller of the Currency, 400 7th Street SW., Suite
3E-218, Mail Stop 9W-11, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW., Suite 3E-218,
Mail Stop 9W-11, Washington, DC 20219.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2016-0008'' in your comment. In general, OCC will enter
all comments received into the docket and publish them on the
Regulations.gov Web site without change, including any business or
personal information that you provide such as name and address
information, email addresses, or phone numbers. Comments received,
including attachments and other supporting

[[Page 43022]]

materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically: Go to
www.regulations.gov. Enter ``Docket ID OCC-2016-0008'' in the Search
box and click ``Search.'' Click on ``Open Docket Folder'' on the right
side of the screen and then ``Comments.'' Comments can be filtered by
clicking on ``View All'' and then using the filtering tools on the left
side of the screen.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov. Supporting materials may
be viewed by clicking on ``Open Docket Folder'' and then clicking on
``Supporting Documents.'' The docket may be viewed after the close of
the comment period in the same manner as during the comment period.
Viewing Comments Personally: You may personally inspect
and photocopy comments at the OCC, 400 7th Street SW., Washington, DC
20219. For security reasons, the OCC requires that visitors make an
appointment to inspect comments. You may do so by calling (202) 649-
6700 or, for persons who are deaf or hard of hearing, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid
government-issued photo identification and submit to security screening
in order to inspect and photocopy comments.

FOR FURTHER INFORMATION CONTACT: Jean Campbell, Counsel, Legislative
and Regulatory Activities Division, (202) 649-5490, or, for persons who
are deaf or hard of hearing, TTY, (202) 649-5597, or Alexander
Abramovich, Attorney, Enforcement and Compliance Division, (202) 649-
6200, Office of the Comptroller of the Currency, 400 7th Street SW.,
Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

I. Background

On November 2, 2015, Congress enacted the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act),\1\
which amended the Federal Civil Penalties Inflation Adjustment Act of
1990 (the Inflation Adjustment Act).\2\ The Inflation Adjustment Act
required the OCC and other Federal agencies with civil money penalty
(CMP) authority to publish by regulation the inflation-adjusted maximum
assessment for each CMP authorized by a law that the agency has
jurisdiction to administer.\3\ Key features of the Inflation Adjustment
Act included requiring such agencies to make inflation adjustments at
least once every four years following any initial adjustment, capping
the initial inflation adjustment increase at 10 percent, and imposing
rounding rules that limited increases based on the amount of the
penalty.
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\1\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015,
129 Stat. 599, codified at 28 U.S.C. 2461 note.
\2\ See Public Law 101-410, Oct. 5, 1990, 104 Stat. 890,
codified at 28 U.S.C. 2461 note.
\3\ The 2015 Act defines a ``civil monetary penalty'' to mean
``any penalty, fine, or other sanction that is for a specific
monetary amount as provided by Federal law; or has a maximum amount
provided for by Federal law; and is assessed or enforced by an
agency pursuant to Federal law; and is assessed or enforced pursuant
to an administrative proceeding or a civil action in the Federal
courts.''
28 U.S.C. 2461 note, section 3(2). Thus, a penalty based on
another measure, such as a percentage of total assets, need not be
adjusted.
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The purpose of the 2015 Act is to: (i) Establish a mechanism to
regularly adjust CMPs for inflation; (ii) maintain the deterrent effect
of CMPs and promote compliance with the law; and (iii) improve the
collection of CMPs by the Federal government.\4\ Key provisions of the
2015 Act include simplifying the process for calculating the inflation
increase, eliminating the complex rounding rules, and requiring Federal
agencies to adjust penalties on an annual basis.
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\4\ See 28 U.S.C. 2461 note, section 2(b).
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The 2015 Act requires agencies to increase the level of each
maximum CMP, or the range of minimum and maximum CMPs, with an initial
``catch-up'' adjustment through an interim final rule published in the
Federal Register no later than July 1, 2016, with an effective date no
later than August 1, 2016.\5\ Under the 2015 Act, agencies must
calculate initial catch-up adjustments based on the percentage increase
in the October 2015 Consumer Price Index for all Urban Consumers (CPI-
U) \6\ from the October CPI-U of the year the CMP was established or
last adjusted by law. However, for the catch-up adjustment, the amount
of the initial increase may not exceed 150 percent of the CMP in effect
on the date the 2015 Act was enacted (i.e., November 2, 2015).
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\5\ The 2015 Act, however, provides a mechanism for an agency,
with the concurrence of the Office of Management and Budget (OMB),
to reduce a catch-up adjustment if the agency demonstrates the
required increase of the penalty or penalty range would have a
negative economic impact or that social costs would outweigh the
benefits.
\6\ This index is published by the Department of Labor.
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The 2015 Act requires agencies to publish subsequent annual
adjustments in the Federal Register no later than January 15 of each
year, beginning on January 15, 2017. The 2015 Act also requires
agencies to calculate subsequent annual inflation adjustments based on
the percentage increase in the CPI-U for the month of October preceding
the date of the adjustment from the prior year's October CPI-U and to
round all adjustments to the nearest dollar.
The 2015 Act also requires OMB to issue guidance to Federal
agencies on implementing the required inflation adjustments. The OMB
guidance (OMB Guidance), issued February 24, 2016, provides the
multiplier (i.e., the inflation adjustment factor agencies must use to
adjust their penalties), step-by-step instructions on how to calculate
the catch-up adjustments, and other relevant information.\7\
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\7\ Office of Management and Budget Memorandum, M-16-06
(February 24, 2016), available at: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
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The OCC last evaluated and adjusted the maximum amount of CMPs
applicable to national banks and Federal savings associations in 2012.
An interim final rule was published in the Federal Register on November
6, 2012,\8\ and became effective on December 6, 2012. The OCC published
a technical amendment to this rule in the Federal Register on December
28, 2012,\9\ that became effective on December 28, 2012.
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\8\ 77 FR 66529.
\9\ 77 FR 76354.
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II. Description of the Interim Final Rule

A. Initial Inflation Adjustment

This interim final rule adjusts for inflation the maximum
assessment for each CMP that the OCC has jurisdiction to impose in
accordance with the 2015 Act and the OMB Guidance. The OCC is
incorporating these adjustments into the charts that are set forth at
12 CFR 19.240(a) with respect to national banks (national bank chart)
and 12 CFR 109.103(c) with respect to Federal savings associations
(Federal savings association chart). Each chart identifies the statutes
that authorize the OCC to assess CMPs, describes the different tiers of
penalties provided in each statute (as applicable), and sets out the
inflation-adjusted maximum penalty that the OCC may impose pursuant to
each statutory provision. The OCC calculated the amounts in the charts
in accordance with the OMB Guidance, as follows.

[[Page 43023]]

In order to calculate the catch-up adjustment, the OMB Guidance
instructs agencies to identify, for each penalty, the year and
corresponding amount(s) for which the maximum penalty level or range of
minimum and maximum penalties was 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 the Inflation Adjustment Act. Thus, this step of the
calculation excludes prior inflation adjustments under the Inflation
Adjustment Act.\10\
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\10\ See OMB Guidance, at 3.
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The OMB Guidance then directs agencies to modify that penalty level
or range based on the CPI-U for the month of October 2015, not
seasonally adjusted. OMB calculated the multiplier that agencies must
apply in order to adjust the penalty level or range of penalty levels,
based on the year the penalty was established or last adjusted by
statute or regulation, and provided these multipliers for the years
1914 through 2015.\11\ Agencies must apply the multiplier and round all
penalty levels to the nearest dollar. However, because the 2015 Act
caps the amount of the initial catch-up adjustment at 150 percent, the
OMB Guidance states that each adjusted penalty cannot exceed 250
percent of the penalty level in effect on November 2, 2015.\12\ The
2015 Act states that agencies are required to apply the new penalty
levels to CMPs that are assessed after the effective date of the rule.
The OMB Guidance clarifies that inflation adjustments calculated and
assessed pursuant to the 2015 Act adjust penalties prospectively and do
not retrospectively change penalties previously assessed or enforced
that the agency is actively collecting or has collected.\13\
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\11\ For penalties established or last adjusted prior to 1914,
the OMB Guidance states that agencies should use the multiplier for
1914. See id., Table A, at 6.
\12\ See 28 U.S.C. 2461 note, section 5(b)(2)(C); see also OMB
Guidance, at 3.
\13\ See OMB Guidance, at 4.
---------------------------------------------------------------------------

The worksheets below show how the OCC calculated the new penalty
levels for national banks and Federal savings associations. Only two
penalties, those provided in 12 U.S.C. 1832(c) and 1884, were capped at
250 percent of the amount of the penalty on November 2, 2015.
The OCC did not exercise the discretion it is provided under the
2015 Act to seek a reduced catch-up adjustment determination from OMB.
Such a request would have required the OCC to demonstrate that the
penalty would have a negative economic impact, or that the social costs
of the adjustment would outweigh the benefits.\14\ As the penalties
reflected in the national bank chart and Federal savings association
chart are, for the most part, maximum penalties, the OCC may impose
lesser penalties, if warranted. Accordingly, the OCC concluded that a
reduced catch-up adjustment determination was not necessary.
---------------------------------------------------------------------------

\14\ See 28 U.S.C. 2461 note, section 4(c) and OMB Guidance, at
3.
---------------------------------------------------------------------------

B. Penalties Added to the National Bank Chart and Federal Savings
Association Chart

This interim final rule adjusts the following additional penalties
that are being incorporated into the national bank chart and Federal
savings association chart. First, both charts include a new CMP,
provided in 15 U.S.C. 1639e(k), created by the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act).\15\ The new CMP
makes it unlawful for a creditor who extends credit, or provides any
services for a consumer credit transaction secured by the consumer's
principal dwelling, to engage in any act or practice that violates the
regulation implementing the appraisal independence requirements in
section 1472 of the Dodd-Frank Act. Pursuant to the Dodd-Frank Act, the
maximum daily penalty for the first violation is $10,000 and the
maximum daily penalty for subsequent violations is $20,000. The
adjusted maximum daily penalties will be $10,875 and $21,749,
respectively.
---------------------------------------------------------------------------

\15\ See Dodd-Frank Act, Public Law 111-203, Title XIV, section
1472, July 21, 2010, 124 Stat. 2187, codified at 15 U.S.C. 1639e(k).
---------------------------------------------------------------------------

The OCC also is adjusting the penalty provided in 12 U.S.C. 481, an
existing CMP that previously was not included in the chart. Twelve
U.S.C. 481 authorizes the OCC to assess on a national bank a maximum
daily penalty of no more than $5,000 if any affiliate of a national
bank refuses to permit an examiner to make an examination of such
affiliate or refuses to provide any information required in the course
of such an examination. The adjusted maximum daily penalty will be
$9,468.
In addition, the OCC is adjusting the penalties provided in 12
U.S.C. 1832(c), 12 U.S.C. 1972(2)(F), and 15 U.S.C. 78u-2(b), three
CMPs that are in the national bank chart, but were not previously
included in the chart applicable to Federal savings associations.
Twelve U.S.C. 1832(c) makes it unlawful for a depository institution to
violate the restrictions on withdrawals by negotiable or transferable
instruments for transfers to third parties. The penalty when first
established was $1,000 per violation. The adjusted penalty will be
$2,750 per violation. Twelve U.S.C 1972(2)(F) makes it unlawful for a
savings association to violate anti-tying restrictions regarding
correspondent accounts, unsafe or unsound practices, or breach of
fiduciary duty. When first established, the maximum daily penalty was:
$5,000 for a tier 1 violation; $25,000 for a tier 2 violation;
$1,000,000 for a tier 3 violation by a person other than a bank; and
the lesser of $1,000,000 or 1 percent of total assets for a tier 3
violation by a bank. The adjusted maximum daily penalties will be:
$9,468 for a tier 1 violation; $47,340 for a tier 2 violation;
$1,893,610 for a tier 3 violation by a person other than a bank; and
the lesser of $1,893,610 or 1 percent of total assets for a tier 3
violation by a bank. Fifteen U.S.C. 78u-2(b) provides penalties for
violations of various provisions of the Securities Act,\16\ the
Securities Exchange Act,\17\ the Investment Company Act,\18\ and the
Investment Advisers Act,\19\ as applicable. When first established, the
maximum penalty per violation was: $5,000 for a tier 1 violation by a
natural person; $50,000 for a tier 1 violation by any other person;
$50,000 for a tier 2 violation by a natural person; $250,000 for a tier
2 violation by any other person; $100,000 for a tier 3 violation by a
natural person; and $500,000 for a tier 3 violation by any other
person. The adjusted maximum penalties will be: $8,907 for tier 1
(natural person); $89,078 for tier 1 (other person); $89,078 for tier 2
(natural person); $445,390 for tier 2 (other person); $178,156 for tier
3 (natural person); and $890,780 for tier 3 (other person).
---------------------------------------------------------------------------

\16\ Securities Act of 1933, Title I of Public Law 73-22,
enacted May 27, 1933, 48 Stat. 74, codified at 15 U.S.C. 77a, et
seq.
\17\ Securities Exchange Act of 1934, Public Law 73-291, enacted
June 6, 1934, 48 Stat. 881, codified at 15 U.S.C. 78a, et seq.
\18\ Investment Company Act of 1940, Public Law 76-768, enacted
Aug. 22, 1940, 54 Stat. 789, codified at 15 U.S.C. 80a-1, et seq.
\19\ Investment Advisers Act of 1940, Public Law 76-768, enacted
Aug. 22, 1940, 54 Stat. 847, codified at 15 U.S.C. 80b-1, et seq.
---------------------------------------------------------------------------

C. Other Technical Changes to the National Bank Chart and Federal
Savings Association Chart

The OCC is making several minor technical edits to the national
bank chart and Federal savings association chart. The OCC is amending
the charts by adding a footnote to each chart, where appropriate, to
clarify that for certain penalties the applicable statute provides that
the penalty will be the lesser of a dollar adjusted penalty

[[Page 43024]]

amount or 1 percent of the bank's total assets. The text of the new
Federal savings association chart no longer includes reference to 12
U.S.C. 3349(b). This penalty is an example of penalties that do not
themselves provide the amount of the penalty but rather cross-reference
12 U.S.C. 1818. Instead, the OCC is adding a footnote to the national
bank chart (footnote 3) and the Federal savings association chart
(footnote 3), where appropriate, explaining that statutes cross-
referencing 12 U.S.C. 1818 are adjusted automatically when the penalty
in section 1818 is adjusted for inflation.
The interim final rule also deletes Sec. Sec. 19.240(c) and
109.103(d), which provided an effective date of July 6, 2012, for the
amount of the penalties for violations of 42 U.S.C. 4012a(f)(5), as all
the penalty amounts on the revised national bank chart and Federal
savings association chart are now effective on the same date.
Finally, consistent with the 2015 Act, revised Sec. Sec. 19.240(b)
and 109.103(c) state that the penalties in the charts at Sec. Sec.
19.240(a) and 109.103(c) apply only to penalties assessed on or after
the effective date of this interim final rule, August 1, 2016.

2015 Worksheet--National Banks
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted
Amount of maximum
Maximum Year Amount when increase penalty (after
U.S. Code citation Tier (if applicable) penalty on established established or Inflation (rounded to rounding and
Nov. 2, 2015 or last last adjusted factor nearest comparison
(in dollars) adjusted dollar) calculation)
(in dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 93(b)................... Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 164..................... Tier 1.............. 3,200 1989 2,000 1.89361 3,787 3,787
Tier 2.............. 32,000 1989 20,000 1.89361 37,872 37,872
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 481..................... Per day............. 5,000 1989 5,000 1.89361 9,468 9,468
12 U.S.C. 504..................... Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1817(j)(16)............. Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1818(i)(2).............. Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1, 425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1820(k)(6)(A)(ii)....... .................... 275,000 2004 250,000 1.24588 311,470 311,470
12 U.S.C. 1832(c)................. .................... 1,100 1973 1,000 5.21575 5,216 \20\ 2,750
12 U.S.C. 1884.................... .................... 110 1968 100 6.73762 674 \20\ 275
12 U.S.C. 1972(2)(F).............. Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 3110(a)................. .................... 37,500 1991 25,000 1.73099 43,275 43,275
12 U.S.C. 3110(c)................. Tier 1.............. 3,200 1991 2,000 1.73099 3,462 3,462
Tier 2.............. 32,000 1991 20,000 1.73099 34,620 34,620
Tier 3.............. 1,425,000 1991 1,000,000 1.73099 1,730,990 1,730,990
12 U.S.C. 3909(d)(1).............. .................... 1,100 1983 1,000 2.35483 2,355 2,355
15 U.S.C. 78u-2(b)................ Tier 1 (natural 7,500 1990 5,000 1.78156 8,908 8,908
person).
Tier 1 (other 70,000 1990 50,000 1.78156 89,078 89,078
person).
Tier 2 (natural 70,000 1990 50,000 1.78156 89,078 89,078
person).
Tier 2 (other 350,000 1990 250,000 1.78156 445,390 445,390
person).
Tier 3 (natural 140,000 1990 100,000 1.78156 178,156 178,156
person).
Tier 3 (other 700,000 1990 500,000 1.78156 890,780 890,780
person).
15 U.S.C. 1639e(k)................ First violation..... 10,000 2010 10,000 1.08745 10,875 10,875
Subsequent violation 20,000 2010 20,000 1.08745 21,749 21,749
42 U.S.C. 4012a(f)(5)............. Per violation....... 2,000 2012 2,000 1.02819 2,056 2,056
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 43025]]

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

\20\ Because the 2015 Act caps the amount of the initial
inflation adjustment (catch-up adjustment) at 150 percent, the
catch-up adjustment cannot exceed 250 percent of the penalty
level(s) in effect on the date the 2015 Act was enacted (i.e.,
November 2, 2015).

2015 Worksheet--Federal Savings Associations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted
Amount of maximum
Maximum Year Amount when increase penalty (after
U.S. Code citation Tier (if applicable) penalty on established or established or Inflation (rounded to rounding and
Nov. 2, 2015 last adjusted last adjusted factor nearest comparison
(in dollars) dollar) calculation)
(in dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 1464(v)................. Tier 1.............. 3,200 1989 2,000 1.89361 3,787 3,787
Tier 2.............. 32,500 1989 20,000 1.89361 37,872 37,872
Tier 3.............. 1,425,500 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1467(d)................. .................... 7,500 1989 5,000 1.89361 9,468 9,468
12 U.S.C. 1467a(r)................ Tier 1.............. 3,200 1989 2,000 1.89361 3,787 3,787
Tier 2.............. 32,500 1989 20,000 1.89361 37,872 37,872
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1817(j)(16)............. Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,425,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1818(i)(2).............. Tier 1.............. 7,500 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 37,500 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,375,000 1989 1,000,000 1.89361 1,893,610 1,893,610
12 U.S.C. 1820(k)(6)(A)(ii)....... .................... 275,000 2004 250,000 1.24588 311,470 311,470
12 U.S.C. 1832(c)................. .................... 1,000 1973 1,000 5.21575 5,216 \21\ 2,500
12 U.S.C. 1884.................... .................... 110 1968 100 6.73762 674 \21\ 275
12 U.S.C. 1972(2)(F).............. Tier 1.............. 5,000 1989 5,000 1.89361 9,468 9,468
Tier 2.............. 25,000 1989 25,000 1.89361 47,340 47,340
Tier 3.............. 1,000,000 1989 1,000,000 1.89361 1,893,610 1,893,610
15 U.S.C. 78u-2(b)................ Tier 1 (natural 5,000 1990 5,000 1.78156 8,908 8,908
person).
Tier 1 (other 50,000 1990 50,000 1.78156 89,078 89,078
person).
Tier 2 (natural 50,000 1990 50,000 1.78156 89,078 89,078
person).
Tier 2 (other 250,000 1990 250,000 1.78156 445,390 445,390
person).
Tier 3 (natural 100,000 1990 100,000 1.78156 178,156 178,156
person).
Tier 3 (other 500,000 1990 500,000 1.78156 890,780 890,780
person).
15 U.S.C. 1639e(k)................ First violation..... 10,000 2010 10,000 1.08745 10,875 10,875
Subsequent 20,000 2010 20,000 1.08745 21,749 21,749
violations.
42 U.S.C. 4012a(f)(5)............. Per violation....... 2,000 2012 2,000 1.02819 2,056 2,056
--------------------------------------------------------------------------------------------------------------------------------------------------------

III. Request for Comments
---------------------------------------------------------------------------

\21\ Because the 2015 Act caps the amount of the initial
inflation adjustment (catch-up adjustment) at 150 percent, the
catch-up adjustment cannot exceed 250 percent of the penalty
level(s) in effect on the date the 2015 Act was enacted (i.e.,
November 2, 2015).
---------------------------------------------------------------------------

The 2015 Act requires the OCC to adjust the CMPs that it has
jurisdiction to administer through an interim final rule. The 2015 Act
also dictates the method by which the amount of the initial catch-up
adjustment for each CMP must be calculated. As noted in the OMB
Guidance, agencies are not required to complete a notice-and-comment
process prior to publication of this interim final rule in the Federal
Register.\22\ However, the OCC invites comments on all aspects of this
interim final rule. Commenters are specifically encouraged to identify
any technical issues raised by the rule, including identifying any CMPs
that may have been unintentionally omitted from this rulemaking.
---------------------------------------------------------------------------

\22\ See OMB Guidance, at 3.
---------------------------------------------------------------------------

IV. Regulatory Analysis

A. Delayed Effective Date

Section 302 of the Riegle Community Development and Regulatory
Improvement Act of 1994 \23\ (RCDRIA) requires that the effective date
of new regulations and amendments to regulations that impose additional
reporting, disclosures, or other new requirements on insured depository
institutions shall be the first day of a calendar quarter that begins
on or after the date the regulations are published in final form. 12
U.S.C. 4802(b)(1). The RCDRIA does not apply to this interim final rule
because the rule merely increases the amount of CMPs that already exist
and does not impose any additional reporting, disclosures, or other new
requirements.
---------------------------------------------------------------------------

\23\ 12 U.S.C. 4802.
---------------------------------------------------------------------------

The Administrative Procedure Act generally requires an agency to
publish a rule 30 days prior to its effective date.\24\ This interim
final rule satisfies

[[Page 43026]]

that requirement. It also satisfies the requirement in the 2015 Act to
publish the initial interim final rule no later than July 1, 2016, with
an effective date no later than August 1, 2016.
---------------------------------------------------------------------------

\24\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

B. Regulatory Flexibility Act

The Regulatory Flexibility Act applies only to rules for which an
agency publishes a general notice of proposed rulemaking pursuant to 5
U.S.C. 553(b).\25\ Because the 2015 Act requires agencies' catch-up
adjustments to be made through an interim final rule, the OCC is not
publishing a general notice of proposed rulemaking. Thus, the
Regulatory Flexibility Act does not apply to this interim final rule.
---------------------------------------------------------------------------

\25\ 5 U.S.C. 601(2).
---------------------------------------------------------------------------

C. Unfunded Mandates Reform Act of 1995

Section 202 of the Unfunded Mandates Reform Act of 1995 \26\
requires that an agency prepare a budgetary impact statement before
promulgating any rule likely to result in a Federal mandate that may
result in the expenditure by State, local, and tribal governments, in
the aggregate, or by the private sector of $100 million or more, as
adjusted for inflation, in any one year. The Unfunded Mandates Reform
Act only applies when an agency issues a general notice of proposed
rulemaking. Because the OCC is not publishing a notice of proposed
rulemaking, this interim final rule is not subject to section 202 of
the Unfunded Mandates Reform Act.
---------------------------------------------------------------------------

\26\ 2 U.S.C. 1532.
---------------------------------------------------------------------------

List of Subjects

12 CFR Part 19

Administrative practice and procedure, Crime, Equal access to
justice, Investigations, National banks, Penalties, Securities.

12 CFR Part 109

Administrative practice and procedure, Federal savings
associations, Penalties.

Authority and Issuance

For the reasons set out in the preamble, parts 19 and 109 of
chapter I of title 12 of the Code of Federal Regulations are amended as
follows:

PART 19--RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 19 is revised to read as follows:

Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 93a, 164,
481, 504, 1817, 1818, 1820, 1831m, 1831o, 1832, 1884, 1972, 3102,
3108(a), 3110, 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o-4(c),
78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, 78w, and 1639e; 28 U.S.C. 2461
note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a.

0
2. Section 19.240 is revised to read as follows:

Sec. 19.240 Inflation adjustments.

(a) The maximum amount of each civil money penalty within the OCC's
jurisdiction is set forth as follows:

----------------------------------------------------------------------------------------------------------------
Maximum
penalty amount
U.S. Code citation Description and tier (if applicable) (in dollars)
\1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 93(b)..................... Violation of Various Provisions of the National Bank Act:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 164....................... Violation of Reporting Requirements:
Tier 1.................................................... 3,787
Tier 2.................................................... 37,872
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 481....................... Refusal of Affiliate to Cooperate in Examination (national 9,468
bank).
12 U.S.C. 504....................... Violation of Various Provisions of the Federal Reserve
Act:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 1817(j)(16)............... Violation of Change in Bank Control Act:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 1818(i)(2) \3\............ Violation of Law, Unsafe or Unsound Practice, or Breach of
Fiduciary Duty:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 1820(k)(6)(A)(ii)......... Violation of Post-Employment Restrictions:
Per violation............................................. 311,470
12 U.S.C. 1832(c)................... Violation of Withdrawals by Negotiable or Transferable
Instrument for Transfers to Third Parties:
Per violation............................................. 2,750
12 U.S.C. 1884...................... Violation of the Bank Protection Act...................... 275
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.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 3110(a)................... Violation of Various Provisions of the International 43,275
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.................................................... 3,462
Tier 2.................................................... 34,620
Tier 3.................................................... \2\ 1,730,990
12 U.S.C. 3909(d)(1)................ Violation of International Lending Supervision Act........ 2,355

[[Page 43027]]

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 person)--Per violation.................... 8,908
Tier 1 (other person)--Per violation...................... 89,078
Tier 2 (natural person)--Per violation.................... 89,078
Tier 2 (other person)--Per violation...................... 445,390
Tier 3 (natural person)--Per violation.................... 178,156
Tier 3 (other person)--Per violation...................... 890,780
15 U.S.C. 1639e(k).................. Violation of Appraisal Independence Requirements:
First violation........................................... 10,875
Subsequent violations..................................... 21,749
42 U.S.C. 4012a(f)(5)............... Flood Insurance:
Per violation............................................. 2,056
----------------------------------------------------------------------------------------------------------------

(b) The maximum amount of each civil money penalty set forth in the
chart in paragraph (a) of this section applies to penalties assessed on
or after August 1, 2016.
---------------------------------------------------------------------------

\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, 1639e(k), 1693o, 1681s, 1691c, and
1692l.
---------------------------------------------------------------------------

PART 109--RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY
PROCEEDINGS

0
3. The authority citation for part 109 is revised to read as follows:

Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 1464, 1467, 1467a,
1468, 1817, 1818, 1820(k), 1829(e), 1832, 1884, 1972, 3349, 4717,
5412(b)(2)(B); 15 U.S.C. 78(l), 78o-5, 78u-2, 1639e; 28 U.S.C. 2461
note; 31 U.S.C. 5321; and 42 U.S.C. 4012a.

0
4. Section 109.103 is amended by revising paragraph (c) to read as
follows and by removing paragraph (d):

Sec. 109.103 Civil money penalties.

* * * * *
(c) Maximum amount of civil money penalties. The maximum amount of
each civil money penalty in the chart below applies to penalties
assessed on or after August 1, 2016:

----------------------------------------------------------------------------------------------------------------
Maximum
penalty amount
U.S. Code citation CMP description (in dollars)
\1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1464(v)................... Reports of Condition:
1st Tier.................................................. 3,787
2nd Tier.................................................. 37,872
3rd Tier.................................................. \2\ 1,893,610
12 U.S.C. 1467(d)................... Refusal of Affiliate to Cooperate in Examination.......... 9,468
12 U.S.C. 1467a(r).................. Late/Inaccurate Reports:
1st Tier.................................................. 3,787
2nd Tier.................................................. 37,872
3rd Tier.................................................. \2\ 1,893,610
12 U.S.C. 1817(j)(16)............... Violation of Change in Bank Control Act:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 1818(i)(2) \3\............ Violation of Law, Unsafe or Unsound Practice, or Breach of
Fiduciary Duty:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
12 U.S.C. 1820(k)(6)(A)(ii)......... Violation of Post-Employment Restrictions:
Per violation............................................. 311,470
12 U.S.C. 1832(c)................... Violation of Withdrawals by Negotiable or Transferable
Instruments for Transfers to Third Parties:
Per violation............................................. 2,500
12 U.S.C. 1884...................... Violation of the Bank Protection Act...................... 275
12 U.S.C. 1972(2)(F)................ Violation of Provisions regarding Correspondent Accounts,
Unsafe or Unsound Practices, or Breach of Fiduciary Duty:
Tier 1.................................................... 9,468
Tier 2.................................................... 47,340
Tier 3.................................................... \2\ 1,893,610
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 person)--Per violation.................. 8,908
1st Tier (other person)--Per violation.................... 89,078

[[Page 43028]]

2nd Tier (natural person)--Per violation.................. 89,078
2nd Tier (other person)--Per violation.................... 445,390
3rd Tier (natural person)--Per violation.................. 178,156
3rd Tier (other person)--Per violation.................... 890,780
15 U.S.C. 1639e(k).................. Violation of Appraisal Independence Requirements:
First violation........................................... 10,875
Subsequent violations..................................... 21,749
42 U.S.C. 4012a(f)(5)............... Flood Insurance:
Per violation............................................. 2,056
----------------------------------------------------------------------------------------------------------------

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

\1\ The maximum penalty amount is per day, unless otherwise
indicated.
\2\ The maximum penalty amount for a 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, 1639e(k), 1693o, 1681s, 1691c, and 1692l.

Dated: June 23, 2016.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2016-15376 Filed 6-30-16; 8:45 am]
BILLING CODE 4810-33-P

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