Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments, 8584-8588 [2017-00592]
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Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Rules and Regulations
violations that occurred after November
2, 2015 $11,182 per violation, up to a
total of $55,910 per civil penalty action,
in the case of an individual or small
business concern; and
(2) For violations that occurred on or
before November 2, 2015, $10,000 per
violation, up to a total of $400,000 per
civil penalty action, in the case of any
other person. For violations that
occurred after November 2, 2015,
$11,182 per violation, up to a total of
$447,280 per civil penalty action, in the
case of any other person.
(c) Certain aviation related violations.
In the case of a violation of 49 U.S.C.
chapter 449 (except sections 44902,
44903(d), 44907(a)–(d)(1)(A),
44907(d)(1)(C)–(f), 44908, and 44909), or
49 U.S.C. 46302 or 46303, or a
regulation prescribed or order issued
under any of those provisions, TSA may
impose a civil penalty in the following
amounts:
(1) For violations that occurred on or
before November 2, 2015, $10,000 per
violation, up to a total of $50,000 per
civil penalty action, in the case of an
individual or small business concern, as
defined in section 3 of the Small
Business Act (15 U.S.C. 632). For
violations that occurred after November
2, 2015, $13,066 per violation, up to a
total of 65,333 per civil penalty action,
in the case of an individual (except an
airman serving as an airman), or a small
business concern.
(2) For violations that occurred on or
before November 2, 2015, $10,000 per
violation, up to a total of $400,000 per
civil penalty action, in the case of any
other person (except an airman serving
as an airman) not operating an aircraft
for the transportation of passengers or
property for compensation. For
violations that occurred after November
2, 2015, $13,066 per violation, up to a
total of $522,657 per civil penalty
action, in the case of any other person
(except an airman serving as an airman)
not operating an aircraft for the
transportation of passengers or property
for compensation.
(3) For violations that occurred on or
before November 2, 2015, $25,000 per
violation, up to a total of $400,000 per
civil penalty action, in the case of a
person operating an aircraft for the
transportation of passengers or property
for compensation (except an individual
serving as an airman). For violations
that occurred after November 2, 2015,
$32,666 per violation, up to a total of
$522,657 per civil penalty action, in the
case of a person (except an individual
serving as an airman) operating an
aircraft for the transportation of
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passengers or property for
compensation.
Jeh Charles Johnson,
Secretary.
[FR Doc. 2017–00605 Filed 1–26–17; 8:45 am]
BILLING CODE 9110–09–P; 9111–14–P; 9111–28–Pl
9110–04–P; 9110–05–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 19 and 109
[Docket ID OCC–2017–0002]
RIN 1557–AE14
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.
ACTION: Final rule.
AGENCY:
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 adjust the maximum
amount of each civil money penalty
within its jurisdiction to administer to
account for inflation. These actions
implement the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015.
DATES: This rule is effective on January
27, 2017 and is applicable to penalties
assessed after January 15, 2017.
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:
SUMMARY:
I. Background
The final rule changes the maximum
amount for each civil money penalty
(CMP) within the OCC’s jurisdiction to
administer to account for inflation
pursuant to the Federal Civil Penalties
Inflation Adjustment Act of 1990 (the
1990 Adjustment Act),1 as amended by
1 Public Law 101–410, Oct. 5, 1990, 104 Stat. 890,
codified at 28 U.S.C. 2461 note.
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the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 Adjustment Act).2 The
1990 Adjustment Act had required the
OCC and other Federal agencies with
CMP authority to publish by regulation
the inflation-adjusted maximum amount
for each CMP authorized by a law that
the agency has jurisdiction to
administer. Key features of the 1990
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 Adjustment
Act was to establish a mechanism to
regularly adjust CMPs for inflation;
maintain the deterrent effect of CMPs
and promote compliance with the law;
and improve the collection of CMPs by
the Federal government.3 The 2015
Adjustment Act revised the process by
which each Federal agency must adjust
its CMPs for inflation. Under the 2015
Adjustment Act, agencies were required
to adjust the amount of their CMPs 4 for
inflation with an initial catch-up
adjustment through an interim final rule
published by July 1, 2016, and to make
subsequent adjustments for inflation by
January 15 of each year, beginning in
2017. In addition, the 2015 Adjustment
Act simplified the process for
calculating the inflation increase and
eliminated the complex rounding rules
in the 1990 Adjustment Act.
The 2015 Adjustment Act also
required the Office of Management and
Budget (OMB) to issue initial guidance
to Federal agencies no later February 29,
2016, and subsequent guidance not later
than December 15 of each year,
beginning on December 15, 2016, on
implementing the required inflation
adjustments.
In accordance with the 2015
Adjustment Act and OMB’s initial
guidance, issued on February 29, 2016,5
2 Public Law 114–74, Title VII, section 701(b),
Nov. 2, 2015, 129 Stat. 599, codified at 28 U.S.C.
2461 note.
3 28 U.S.C. 2461 note, section 2(b).
4 The 2015 Adjustment Act defined 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.
5 Office of Management and Budget
Memorandum, M–16–06 (February 24, 2016),
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the OCC increased the amount of each
maximum CMP with an initial catch-up
adjustment by publishing an interim
final rule in the Federal Register on July
1, 2016, with an effective date of August
1, 2016.6 The OCC did not receive any
comments on this interim final rule.
On December 16, 2016, the OMB
published additional guidance to assist
Federal agencies in calculating the 2017
annual inflation adjustment pursuant to
the 2015 Adjustment Act (2016 OMB
Guidance).7 The 2016 OMB guidance
provided the cost-of-living inflation
adjustment multiplier (i.e., the inflation
adjustment factor agencies must use to
adjust their penalties) for 2017, step-bystep instructions on how agencies
should calculate the annual inflation
adjustments, and other relevant
information.
II. Description of the Final Rule
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A. 2017 Inflation Adjustment
The 2015 Adjustment Act required
Federal agencies to make annual
adjustments no later than January 15 of
each year, beginning on January 15,
2017 8 and to publish such adjustments
in the Federal Register. This final rule
amends the OCC’s rules of practice and
procedure for national banks at 12 CFR
19.240 and its rules of practice and
procedure in adjudicatory proceedings
for Federal savings associations at 12
CFR 109.103 to adjust for inflation the
maximum amount of each CMP that the
OCC has jurisdiction to impose in
accordance with the 2015 Adjustment
Act and the 2016 OMB Guidance.
First, the final rule describes the
formula used by the OCC to calculate
the new maximum inflation-adjusted
amount of each CMP. It states that the
inflation adjustment is calculated by
multiplying the maximum dollar
amount of the CMP for the previous
calendar year by the cost-of living
inflation adjustment multiplier
provided annually by OMB and
rounding the total to the nearest dollar.9
Next, the rule adjusts each CMP that
the OCC has jurisdiction to administer
in accordance with the formula
described above. The OCC calculated
the adjusted amounts in the national
bank chart at 12 CFR 19.240(b) (national
bank chart) and Federal savings
available at: https://www.whitehouse.gov/sites/
default/files/omb/memoranda/2016/m-16-06.pdf.
6 81 FR 43021 (July 1, 2016).
7 Office of Management and Budget
Memorandum, M–17–11 (December 16, 2016),
available at: https://www.whitehouse.gov/sites/
default/files/omb/memoranda/2017/m-17-11_0.pdf.
8 28 U.S.C. 2461 note, section 4(a).
9 The formula that OMB must use is described in
the 2015 Adjustment Act at 28 U.S.C. 2461 note,
section 5.
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association chart at 12 CFR
109.103(c)(2) (Federal savings
association chart) by applying the costof living inflation adjustment multiplier
provided by OMB 10 to each maximum
CMP and rounding all penalty amounts
to the nearest dollar. 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 maximum inflation-adjusted penalty
that the OCC may impose pursuant to
each statutory provision.11
The final rule also makes clear that
the adjustments in each chart apply to
penalties assessed after January 15,
2017, for violations that occurred on or
after November 2, 2015, which is the
date of enactment of the 2015
Adjustment Act.
The final rule also states that future
annual inflation adjustments to the
maximum penalty amounts will be
published as a notice in the Federal
Register. The 2015 Adjustment Act
required Federal agencies to annually
adjust their CMPs for inflation
beginning on January 15, 2017, and each
year thereafter, and to publish the
adjusted CMPs in the Federal Register.
While the 2015 Adjustment Act
required the OCC to initially adjust its
maximum CMP amounts through an
interim final rulemaking, the 2015
Adjustment Act specifically stated that
subsequent adjustments shall be made
‘‘notwithstanding section 553 of title 5,
United States Code’’ (i.e., the
Administrative Procedure Act or
APA).12 The 2016 OMB Guidance
clarifies that this means ‘‘the public
procedure the APA generally requires—
notice, an opportunity for comment, and
a delay in effective date—is not required
for agencies to issue regulations
implementing the annual
adjustment.’’ 13 Accordingly, the OCC
will publish its future inflation
10 The 2016 OMB Guidance states that the 2017
cost-of-living inflation adjustment multiplier is
1.01636. 2016 OMB Guidance, at 1. In accordance
with the 2015 Adjustment Act, OMB based this
multiplier on the percent change between the
Consumer Price Index for October 2016 and October
2015. 28 U.S.C. 2461 note, section 5(b)(1).
11 Although the 2015 Adjustment Act required
agencies to increase the maximum penalty that may
be assessed under each applicable statute to
account for inflation, the OCC generally retains
discretion to impose lesser penalties after
consideration has been given to the financial
resources and good faith of the institution or
institution-affiliated party (IAP), the gravity of the
violations, the history of previous violations by the
institution or IAP, and such other matters as justice
may require. 12 U.S.C. 1818(i)(2)G) and Interagency
Policy Statement Regarding the Assessment of
CMPs by the Federal Financial Institutions
Regulatory Agencies, 63 FR 30227 (June 3, 1998).
12 28 U.S.C. 2461 note, section 4(b)(2).
13 2016 OMB Guidance, at 3.
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8585
adjustments as a notice. This process is
specifically described in the 2016 OMB
Guidance.14 In addition, we note that
this is similar to the OCC’s semiannual
fee assessment process at 12 CFR part 8,
which sets forth a chart describing the
formula to calculate the semiannual
assessment fee and states that the OCC
will publish a notice providing the fees
for the upcoming year.15
Furthermore, because the 2015
Adjustment Act does not require annual
adjustments to be published in
accordance with the APA, the OCC is
amending 12 CFR 19.240 and 12 CFR
109.103 by issuing a final rule rather
than a notice of proposed rulemaking.
B. Technical Change to the National
Bank Chart and Federal Savings
Association Chart
The OCC is correcting a minor
technical error in footnote 3 of the
national bank chart and Federal savings
association chart. Footnote 3 explains
that statutes cross-referencing 12 U.S.C.
1818 are adjusted automatically when
the penalty in section 1818 is adjusted
for inflation. Fifteen U.S.C. 1649e(k)
was inadvertently included as an
example of a penalty that crossreferences 12 U.S.C. 1818. Accordingly,
the final rule deletes reference to 15
U.S.C. 1649e(k) in the footnotes, but
retains the reference to this statute in
the national bank chart and Federal
savings association chart.
III. Regulatory Analysis
A. Delayed Effective Date
Section 302 of the Riegle Community
Development and Regulatory
Improvement Act of 1994 16 (RCDRIA)
required 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 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.
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.
14 28 U.S.C. 2461 note, section 4(b)(2) and 2016
OMB Guidance, at 3.
15 12 CFR 8.2 and 8.8.
16 12 U.S.C. 4802.
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Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Rules and Regulations
553(b).17 Because the 2015 Adjustment
Act specifically exempted agencies’
annual adjustments from the
requirements of the APA,18 the OCC is
issuing a final rule, rather than a general
notice of proposed rulemaking. Thus,
the Regulatory Flexibility Act does not
apply to this final rule.
conduct or sponsor, and
notwithstanding any other provision of
law, a person is not required to respond
to, an information collection unless the
information collection displays a valid
OMB control number. The final rule
contains no information collection
requirements under the PRA.
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.
C. Unfunded Mandates Reform Act of
1995
Section 202 of the Unfunded
Mandates Reform Act of 1995 19
required 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 final rule is not subject
to section 202 of the Unfunded
Mandates Reform Act.
List of Subjects
■
D. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA),20 the OCC may not
2. Section 19.240 is revised to read as
follows:
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
1. The authority citation for part 19 is
revised to read as follows:
■
§ 19.240
Inflation adjustments.
(a) Statutory formula to calculate
inflation adjustments. The maximum
amount of each civil money penalty in
the chart in paragraph (b) of this section
is adjusted annually for inflation. The
inflation adjustment is calculated by
multiplying the maximum dollar
amount of the civil money penalty for
the previous calendar year by the costof-living inflation adjustment multiplier
provided annually by the Office of
Management and Budget and rounding
the total to the nearest dollar.
(b) 2017 Inflation adjustment. The
maximum amount of each civil money
penalty in the following chart applies to
penalties assessed after January 15,
2017, for violations that occurred on or
after November 2, 2015:
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 .....................................................................................................................................
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) ........
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12 U.S.C. 1832(c) .....................
12 U.S.C. 1884 .........................
12 U.S.C. 1972(2)(F) ................
17 5
U.S.C. 601(2).
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18 28 U.S.C. 2461 note, section 4(b)(2) and 2016
OMB Guidance, at 3.
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19 2
U.S.C. 1532.
U.S.C. 3501 et seq.
20 44
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9,623
48,114
2 1,924,589
3,849
38,492
2 1,924,589
9,623
9,623
48,114
2 1,924,589
9,623
48,114
2 1,924,589
9,623
48,114
2 1,924,589
316,566
2,795
279
9,623
48,114
Federal Register / Vol. 82, No. 17 / Friday, January 27, 2017 / Rules and Regulations
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) ..................
15 U.S.C. 1639e(k) ...................
42 U.S.C. 4012a(f)(5) ...............
Maximum
penalty
amount
(in dollars) 1
Description and tier
(if applicable)
U.S. Code citation
8587
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 ......................................................................
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 ..........................................................................................................................
2 1,924,589
43,983
3,519
35,186
2 1,759,309
2,394
9,054
90,535
90,535
452,677
181,071
905,353
11,053
22,105
2,090
1 The
maximum penalty amount is per day, unless otherwise indicated.
maximum penalty amount for a national bank is the lesser of this amount or 1 percent of total assets.
amounts also apply to CMPs in statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717
and 15 U.S.C. 1607, 1693o, 1681s, 1691c, and 1692l.
2 The
3 These
(c) Future inflation adjustments.
Notice of the maximum penalty which
may be assessed for the penalties
enumerated in paragraph (b) of this
section for calendar years after 2017 will
be published in the Federal Register on
an annual basis on or before January 15
of each calendar year based on the
formula in paragraph (a) of this section.
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
*
3. The authority citation for part 109
is revised to read as follows:
■
4. Section 109.103 is amended by
revising paragraph (c) to read as follows:
■
§ 109.103
Civil money penalties.
*
*
*
*
(c) Maximum amount of civil money
penalties–(1) Statutory formula. The
maximum amount of each civil money
penalty in the chart in paragraph (c)(2)
of this section is adjusted annually for
inflation. The inflation adjustment is
calculated by multiplying the maximum
dollar amount of the civil money
penalty for the previous calendar year
by the cost-of-living inflation
adjustment multiplier provided
annually by the Office of Management
and Budget and rounding the total to the
nearest dollar.
(2) 2017 Inflation adjustment. The
maximum amount of each civil money
penalty in the following chart applies to
penalties assessed after January 15,
2017, for violations that occurred on or
after November 2, 2015:
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 ..........................................................................................................................
12 U.S.C. 1467(d) .....................
12 U.S.C. 1467a(r) ...................
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12 U.S.C. 1817(j)(16) ...............
12 U.S.C. 1818(i)(2) 3 ...............
12 U.S.C. 1820(k)(6)(A)(ii) ........
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38,492
2 1,924,589
9,623
3,849
38,492
2 1,924,589
9,623
48,114
2 1,924,589
9,623
48,114
2 1,924,589
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Maximum
penalty
amount
(in dollars) 1
U.S. Code citation
CMP description
12 U.S.C. 1832(c) .....................
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 ...................................................................................
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 ..........................................................................................................................
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) ...............
2,541
279
9,623
48,114
2 1,924,589
9,054
90,535
90,535
452,677
181,071
905,353
11,053
22,105
2,090
1 The
maximum penalty amount is per day, unless otherwise indicated.
maximum penalty amount for a national bank is the lesser of this amount or 1 percent of total assets.
amounts also apply to statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15
U.S.C. 1607, 1681s, 1691c, and 1692l.
2 The
3 These
(3) Future inflation adjustments.
Notice of the maximum penalty which
may be assessed for the penalties
enumerated in paragraph (c)(2) of this
section for calendar years after 2017 will
be published in the Federal Register on
an annual basis on or before January 15
of each calendar year based on the
formula in paragraph (c)(1) of this
section.
Dated: January 9, 2017.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2017–00592 Filed 1–26–17; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
jstallworth on DSK7TPTVN1PROD with RULES
[Docket No. USCBP–2016–0075; CBP Dec.
No. 16–26]
Regulatory Implementation of the
Centers of Excellence and Expertise
U.S. Customs and Border
Protection, Department of Homeland
Security.
AGENCIES:
VerDate Sep<11>2014
13:55 Jan 26, 2017
Jkt 241001
This document provides an
additional 60 days for interested parties
to submit comments on the interim final
rule that amended the U.S. Customs and
Border Protection (CBP) regulations
establishing the Centers of Excellence
and Expertise (‘‘Centers’’) as a
permanent organizational component of
the agency and transitioning certain
additional trade functions to the
Centers. The interim final rule was
published in the Federal Register on
December 20, 2016, with comments due
on or before January 19, 2017. To have
as much public participation as possible
in the formulation of the final rule, CBP
is extending the comment period to
March 20, 2017.
SUMMARY:
The comment period for the
interim final rule published December
20, 2016, at 81 FR 92978, effective
January 19, 2017, is extended.
Comments must be received on or
before March 20, 2017.
DATES:
19 CFR Parts 4, 7, 10, 11, 12, 24, 54,
101, 102, 103, 113, 132, 133, 134, 141,
142, 143, 144, 145, 146, 147, 151, 152,
158, 159, 161, 162, 163, 173, 174, 176,
and 181
RIN 1651–AB02
Interim final rule; extension of
comment period.
ACTION:
You may submit comments,
identified by docket number, by one of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments
via docket number USCBP–2016–0075.
• Mail: Trade and Commercial
Regulations Branch, Regulations and
Rulings, Office of Trade, Customs and
ADDRESSES:
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
Border Protection, 90 K Street NE., 10th
Floor, Washington, DC 20229–1177.
Instructions: All submissions received
must include the agency name and
docket number for this rulemaking. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal information provided. For
detailed instructions on submitting
comments and additional information
on the rulemaking process, see the
‘‘Public Participation’’ heading of the
SUPPLEMENTARY INFORMATION section of
this document.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov. Submitted
comments may be inspected during
regular business days between the hours
of 9 a.m. and 4:30 p.m. at the Trade and
Commercial Regulations Branch,
Regulations and Rulings, Office of
Trade, Customs and Border Protection,
90 K Street NE., 10th Floor, Washington,
DC. Arrangements to inspect submitted
comments should be made in advance
by calling Mr. Joseph Clark at (202) 325–
0118.
FOR FURTHER INFORMATION CONTACT: Lori
Whitehurst, CBP Office of Field
Operations by telephone (202) 344–2536
or by email, lori.j.whitehurst@
cbp.dhs.gov; or Susan S. Thomas, CBP
Office of Field Operations by telephone
(202) 344–2511 or by email,
susan.s.thomas@cbp.dhs.gov.
E:\FR\FM\27JAR1.SGM
27JAR1
]]>Agencies
[Federal Register Volume 82, Number 17 (Friday, January 27, 2017)]
[Rules and Regulations]
[Pages 8584-8588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00592]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 19 and 109
[Docket ID OCC-2017-0002]
RIN 1557-AE14
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: Final rule.
-----------------------------------------------------------------------
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 adjust the maximum amount of each civil money
penalty within its jurisdiction to administer to account for inflation.
These actions implement the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015.
DATES: This rule is effective on January 27, 2017 and is applicable to
penalties assessed after January 15, 2017.
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
The final rule changes the maximum amount for each civil money
penalty (CMP) within the OCC's jurisdiction to administer to account
for inflation pursuant to the Federal Civil Penalties Inflation
Adjustment Act of 1990 (the 1990 Adjustment Act),\1\ as amended by the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015 (the 2015 Adjustment Act).\2\ The 1990 Adjustment Act had required
the OCC and other Federal agencies with CMP authority to publish by
regulation the inflation-adjusted maximum amount for each CMP
authorized by a law that the agency has jurisdiction to administer. Key
features of the 1990 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.
---------------------------------------------------------------------------
\1\ Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at
28 U.S.C. 2461 note.
\2\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015,
129 Stat. 599, codified at 28 U.S.C. 2461 note.
---------------------------------------------------------------------------
The purpose of the 2015 Adjustment Act was to establish a mechanism
to regularly adjust CMPs for inflation; maintain the deterrent effect
of CMPs and promote compliance with the law; and improve the collection
of CMPs by the Federal government.\3\ The 2015 Adjustment Act revised
the process by which each Federal agency must adjust its CMPs for
inflation. Under the 2015 Adjustment Act, agencies were required to
adjust the amount of their CMPs \4\ for inflation with an initial
catch-up adjustment through an interim final rule published by July 1,
2016, and to make subsequent adjustments for inflation by January 15 of
each year, beginning in 2017. In addition, the 2015 Adjustment Act
simplified the process for calculating the inflation increase and
eliminated the complex rounding rules in the 1990 Adjustment Act.
---------------------------------------------------------------------------
\3\ 28 U.S.C. 2461 note, section 2(b).
\4\ The 2015 Adjustment Act defined 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.
---------------------------------------------------------------------------
The 2015 Adjustment Act also required the Office of Management and
Budget (OMB) to issue initial guidance to Federal agencies no later
February 29, 2016, and subsequent guidance not later than December 15
of each year, beginning on December 15, 2016, on implementing the
required inflation adjustments.
In accordance with the 2015 Adjustment Act and OMB's initial
guidance, issued on February 29, 2016,\5\
[[Page 8585]]
the OCC increased the amount of each maximum CMP with an initial catch-
up adjustment by publishing an interim final rule in the Federal
Register on July 1, 2016, with an effective date of August 1, 2016.\6\
The OCC did not receive any comments on this interim final rule.
---------------------------------------------------------------------------
\5\ 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.
\6\ 81 FR 43021 (July 1, 2016).
---------------------------------------------------------------------------
On December 16, 2016, the OMB published additional guidance to
assist Federal agencies in calculating the 2017 annual inflation
adjustment pursuant to the 2015 Adjustment Act (2016 OMB Guidance).\7\
The 2016 OMB guidance provided the cost-of-living inflation adjustment
multiplier (i.e., the inflation adjustment factor agencies must use to
adjust their penalties) for 2017, step-by-step instructions on how
agencies should calculate the annual inflation adjustments, and other
relevant information.
---------------------------------------------------------------------------
\7\ Office of Management and Budget Memorandum, M-17-11
(December 16, 2016), available at: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
---------------------------------------------------------------------------
II. Description of the Final Rule
A. 2017 Inflation Adjustment
The 2015 Adjustment Act required Federal agencies to make annual
adjustments no later than January 15 of each year, beginning on January
15, 2017 \8\ and to publish such adjustments in the Federal Register.
This final rule amends the OCC's rules of practice and procedure for
national banks at 12 CFR 19.240 and its rules of practice and procedure
in adjudicatory proceedings for Federal savings associations at 12 CFR
109.103 to adjust for inflation the maximum amount of each CMP that the
OCC has jurisdiction to impose in accordance with the 2015 Adjustment
Act and the 2016 OMB Guidance.
---------------------------------------------------------------------------
\8\ 28 U.S.C. 2461 note, section 4(a).
---------------------------------------------------------------------------
First, the final rule describes the formula used by the OCC to
calculate the new maximum inflation-adjusted amount of each CMP. It
states that the inflation adjustment is calculated by multiplying the
maximum dollar amount of the CMP for the previous calendar year by the
cost-of living inflation adjustment multiplier provided annually by OMB
and rounding the total to the nearest dollar.\9\
---------------------------------------------------------------------------
\9\ The formula that OMB must use is described in the 2015
Adjustment Act at 28 U.S.C. 2461 note, section 5.
---------------------------------------------------------------------------
Next, the rule adjusts each CMP that the OCC has jurisdiction to
administer in accordance with the formula described above. The OCC
calculated the adjusted amounts in the national bank chart at 12 CFR
19.240(b) (national bank chart) and Federal savings association chart
at 12 CFR 109.103(c)(2) (Federal savings association chart) by applying
the cost-of living inflation adjustment multiplier provided by OMB \10\
to each maximum CMP and rounding all penalty amounts to the nearest
dollar. 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 maximum inflation-
adjusted penalty that the OCC may impose pursuant to each statutory
provision.\11\
---------------------------------------------------------------------------
\10\ The 2016 OMB Guidance states that the 2017 cost-of-living
inflation adjustment multiplier is 1.01636. 2016 OMB Guidance, at 1.
In accordance with the 2015 Adjustment Act, OMB based this
multiplier on the percent change between the Consumer Price Index
for October 2016 and October 2015. 28 U.S.C. 2461 note, section
5(b)(1).
\11\ Although the 2015 Adjustment Act required agencies to
increase the maximum penalty that may be assessed under each
applicable statute to account for inflation, the OCC generally
retains discretion to impose lesser penalties after consideration
has been given to the financial resources and good faith of the
institution or institution-affiliated party (IAP), the gravity of
the violations, the history of previous violations by the
institution or IAP, and such other matters as justice may require.
12 U.S.C. 1818(i)(2)G) and Interagency Policy Statement Regarding
the Assessment of CMPs by the Federal Financial Institutions
Regulatory Agencies, 63 FR 30227 (June 3, 1998).
---------------------------------------------------------------------------
The final rule also makes clear that the adjustments in each chart
apply to penalties assessed after January 15, 2017, for violations that
occurred on or after November 2, 2015, which is the date of enactment
of the 2015 Adjustment Act.
The final rule also states that future annual inflation adjustments
to the maximum penalty amounts will be published as a notice in the
Federal Register. The 2015 Adjustment Act required Federal agencies to
annually adjust their CMPs for inflation beginning on January 15, 2017,
and each year thereafter, and to publish the adjusted CMPs in the
Federal Register. While the 2015 Adjustment Act required the OCC to
initially adjust its maximum CMP amounts through an interim final
rulemaking, the 2015 Adjustment Act specifically stated that subsequent
adjustments shall be made ``notwithstanding section 553 of title 5,
United States Code'' (i.e., the Administrative Procedure Act or
APA).\12\ The 2016 OMB Guidance clarifies that this means ``the public
procedure the APA generally requires--notice, an opportunity for
comment, and a delay in effective date--is not required for agencies to
issue regulations implementing the annual adjustment.'' \13\
Accordingly, the OCC will publish its future inflation adjustments as a
notice. This process is specifically described in the 2016 OMB
Guidance.\14\ In addition, we note that this is similar to the OCC's
semiannual fee assessment process at 12 CFR part 8, which sets forth a
chart describing the formula to calculate the semiannual assessment fee
and states that the OCC will publish a notice providing the fees for
the upcoming year.\15\
---------------------------------------------------------------------------
\12\ 28 U.S.C. 2461 note, section 4(b)(2).
\13\ 2016 OMB Guidance, at 3.
\14\ 28 U.S.C. 2461 note, section 4(b)(2) and 2016 OMB Guidance,
at 3.
\15\ 12 CFR 8.2 and 8.8.
---------------------------------------------------------------------------
Furthermore, because the 2015 Adjustment Act does not require
annual adjustments to be published in accordance with the APA, the OCC
is amending 12 CFR 19.240 and 12 CFR 109.103 by issuing a final rule
rather than a notice of proposed rulemaking.
B. Technical Change to the National Bank Chart and Federal Savings
Association Chart
The OCC is correcting a minor technical error in footnote 3 of the
national bank chart and Federal savings association chart. Footnote 3
explains that statutes cross-referencing 12 U.S.C. 1818 are adjusted
automatically when the penalty in section 1818 is adjusted for
inflation. Fifteen U.S.C. 1649e(k) was inadvertently included as an
example of a penalty that cross-references 12 U.S.C. 1818. Accordingly,
the final rule deletes reference to 15 U.S.C. 1649e(k) in the
footnotes, but retains the reference to this statute in the national
bank chart and Federal savings association chart.
III. Regulatory Analysis
A. Delayed Effective Date
Section 302 of the Riegle Community Development and Regulatory
Improvement Act of 1994 \16\ (RCDRIA) required 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 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.
---------------------------------------------------------------------------
\16\ 12 U.S.C. 4802.
---------------------------------------------------------------------------
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.
[[Page 8586]]
553(b).\17\ Because the 2015 Adjustment Act specifically exempted
agencies' annual adjustments from the requirements of the APA,\18\ the
OCC is issuing a final rule, rather than a general notice of proposed
rulemaking. Thus, the Regulatory Flexibility Act does not apply to this
final rule.
---------------------------------------------------------------------------
\17\ 5 U.S.C. 601(2).
\18\ 28 U.S.C. 2461 note, section 4(b)(2) and 2016 OMB Guidance,
at 3.
---------------------------------------------------------------------------
C. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 \19\
required 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 final rule is not subject to section 202 of the
Unfunded Mandates Reform Act.
---------------------------------------------------------------------------
\19\ 2 U.S.C. 1532.
---------------------------------------------------------------------------
D. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA),\20\ the OCC may
not conduct or sponsor, and notwithstanding any other provision of law,
a person is not required to respond to, an information collection
unless the information collection displays a valid OMB control number.
The final rule contains no information collection requirements under
the PRA.
---------------------------------------------------------------------------
\20\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------
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) Statutory formula to calculate inflation adjustments. The
maximum amount of each civil money penalty in the chart in paragraph
(b) of this section is adjusted annually for inflation. The inflation
adjustment is calculated by multiplying the maximum dollar amount of
the civil money penalty for the previous calendar year by the cost-of-
living inflation adjustment multiplier provided annually by the Office
of Management and Budget and rounding the total to the nearest dollar.
(b) 2017 Inflation adjustment. The maximum amount of each civil
money penalty in the following chart applies to penalties assessed
after January 15, 2017, for violations that occurred on or after
November 2, 2015:
----------------------------------------------------------------------------------------------------------------
Maximum
penalty
U.S. Code citation Description and tier (if applicable) amount (in
dollars) \1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 93(b)............................... Violation of Various Provisions of the National
Bank Act:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 164................................. Violation of Reporting Requirements:
Tier 1....................................... 3,849
Tier 2....................................... 38,492
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 481................................. Refusal of Affiliate to Cooperate in Examination 9,623
(national bank).
12 U.S.C. 504................................. Violation of Various Provisions of the Federal
Reserve Act:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 1817(j)(16)......................... Violation of Change in Bank Control Act:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 1818(i)(2) \3\...................... Violation of Law, Unsafe or Unsound Practice, or
Breach of Fiduciary Duty:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 1820(k)(6)(A)(ii)................... Violation of Post-Employment Restrictions:
Per violation................................ 316,566
12 U.S.C. 1832(c)............................. Violation of Withdrawals by Negotiable or
Transferable Instrument for Transfers to Third
Parties:
Per violation................................ 2,795
12 U.S.C. 1884................................ Violation of the Bank Protection Act............ 279
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....................................... 9,623
Tier 2....................................... 48,114
[[Page 8587]]
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 3110(a)............................. Violation of Various Provisions of the 43,983
International Banking Act (Federal Branches and
Agencies):.
12 U.S.C. 3110(c)............................. Violation of Reporting Requirements of the
International Banking Act (Federal Branches and
Agencies):
Tier 1....................................... 3,519
Tier 2....................................... 35,186
Tier 3....................................... \2\ 1,759,309
12 U.S.C. 3909(d)(1).......................... Violation of International Lending Supervision 2,394
Act.
15 U.S.C. 78u-2(b)............................ Violation of Various Provisions of the
Securities Act, the Securities Exchange Act,
the Investment Company Act, or the Investment
Advisers Act:
Tier 1 (natural person)--Per violation....... 9,054
Tier 1 (other person)--Per violation......... 90,535
Tier 2 (natural person)--Per violation....... 90,535
Tier 2 (other person)--Per violation......... 452,677
Tier 3 (natural person)--Per violation....... 181,071
Tier 3 (other person)--Per violation......... 905,353
15 U.S.C. 1639e(k)............................ Violation of Appraisal Independence
Requirements:
First violation.............................. 11,053
Subsequent violations........................ 22,105
42 U.S.C. 4012a(f)(5)......................... Flood Insurance:
Per violation................................ 2,090
----------------------------------------------------------------------------------------------------------------
\1\ The maximum penalty amount is per day, unless otherwise indicated.
\2\ The maximum penalty amount for a national bank is the lesser of this amount or 1 percent of total assets.
\3\ These amounts also apply to CMPs in statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804,
3108, 3349, 4309, and 4717 and 15 U.S.C. 1607, 1693o, 1681s, 1691c, and 1692l.
(c) Future inflation adjustments. Notice of the maximum penalty
which may be assessed for the penalties enumerated in paragraph (b) of
this section for calendar years after 2017 will be published in the
Federal Register on an annual basis on or before January 15 of each
calendar year based on the formula in paragraph (a) of this section.
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:
Sec. 109.103 Civil money penalties.
* * * * *
(c) Maximum amount of civil money penalties-(1) Statutory formula.
The maximum amount of each civil money penalty in the chart in
paragraph (c)(2) of this section is adjusted annually for inflation.
The inflation adjustment is calculated by multiplying the maximum
dollar amount of the civil money penalty for the previous calendar year
by the cost-of-living inflation adjustment multiplier provided annually
by the Office of Management and Budget and rounding the total to the
nearest dollar.
(2) 2017 Inflation adjustment. The maximum amount of each civil
money penalty in the following chart applies to penalties assessed
after January 15, 2017, for violations that occurred on or after
November 2, 2015:
----------------------------------------------------------------------------------------------------------------
Maximum
penalty
U.S. Code citation CMP description amount (in
dollars) \1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1464(v)............................. Reports of Condition:
1st Tier..................................... 3,849
2nd Tier..................................... 38,492
3rd Tier..................................... \2\ 1,924,589
12 U.S.C. 1467(d)............................. Refusal of Affiliate to Cooperate in Examination 9,623
12 U.S.C. 1467a(r)............................ Late/Inaccurate Reports:
1st Tier..................................... 3,849
2nd Tier..................................... 38,492
3rd Tier..................................... \2\ 1,924,589
12 U.S.C. 1817(j)(16)......................... Violation of Change in Bank Control Act:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 1818(i)(2) \3\...................... Violation of Law, Unsafe or Unsound Practice, or
Breach of Fiduciary Duty:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
12 U.S.C. 1820(k)(6)(A)(ii)................... Violation of Post-Employment Restrictions:
Per violation................................ 316,566
[[Page 8588]]
12 U.S.C. 1832(c)............................. Violation of Withdrawals by Negotiable or
Transferable Instruments for Transfers to Third
Parties:
Per violation................................ 2,541
12 U.S.C. 1884................................ Violation of the Bank Protection Act............ 279
12 U.S.C. 1972(2)(F).......................... Violation of Provisions regarding Correspondent
Accounts, Unsafe or Unsound Practices, or
Breach of Fiduciary Duty:
Tier 1....................................... 9,623
Tier 2....................................... 48,114
Tier 3....................................... \2\ 1,924,589
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..... 9,054
1st Tier (other person)--Per violation....... 90,535
2nd Tier (natural person)--Per violation..... 90,535
2nd Tier (other person)--Per violation....... 452,677
3rd Tier (natural person)--Per violation..... 181,071
3rd Tier (other person)--Per violation....... 905,353
15 U.S.C. 1639e(k)............................ Violation of Appraisal Independence
Requirements:
First violation.............................. 11,053
Subsequent violations........................ 22,105
42 U.S.C. 4012a(f)(5)......................... Flood Insurance:
Per violation................................ 2,090
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\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 statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108,
3349, 4309, and 4717 and 15 U.S.C. 1607, 1681s, 1691c, and 1692l.
(3) Future inflation adjustments. Notice of the maximum penalty
which may be assessed for the penalties enumerated in paragraph (c)(2)
of this section for calendar years after 2017 will be published in the
Federal Register on an annual basis on or before January 15 of each
calendar year based on the formula in paragraph (c)(1) of this section.
Dated: January 9, 2017.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2017-00592 Filed 1-26-17; 8:45 am]
BILLING CODE 4810-33-P
