Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Penalties, 54495-54496 [2019-22094]

Download as PDF Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Rules and Regulations ADs@easa.europa.eu; internet www.easa.europa.eu. You may find this EASA AD on the EASA website at https:// ad.easa.europa.eu. (5) You may view this material at the FAA, Transport Standards Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206–231–3195. This material may be found in the AD docket on the internet at http://www.regulations.gov by searching for and locating Docket No. FAA–2019–0441. (6) You may view this material that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, email fedreg.legal@ nara.gov, or go to: http://www.archives.gov/ federal-register/cfr/ibr-locations.html. Issued in Des Moines, Washington, on September 24, 2019. Michael Kaszycki, Acting Director, System Oversight Division, Aircraft Certification Service. [FR Doc. 2019–22152 Filed 10–9–19; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Part 1010 Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Penalties Financial Crimes Enforcement Network (‘‘FinCEN’’), Treasury. ACTION: Final rule. AGENCY: FinCEN publishes this final rule to reflect inflation adjustments to its civil monetary penalties (‘‘CMPs’’) as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as ‘‘the Act’’). This rule adjusts certain CMPs within the jurisdiction of FinCEN to the maximum amount required by the Act. DATES: Effective October 10, 2019. FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at (800) 767– 2825 or email frc@fincen.gov. SUPPLEMENTARY INFORMATION: SUMMARY: Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note (‘‘the Inflation Adjustment Act’’), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114–74) (‘‘the 2015 Act’’), requires Federal agencies to adjust each CMP provided by law within the jurisdiction of the agency. The 2015 Act requires agencies to adjust the level of CMPs with an initial ‘‘catch-up’’ adjustment through an interim final rulemaking and to make subsequent annual adjustments for inflation, without needing to provide notice and the opportunity for public comment otherwise required by 5 U.S.C. 553. The 2015 Act provides that any increase in a CMP shall apply to CMPs that are assessed after the date the increase takes effect, regardless of whether the underlying violation predated such increase.1 CMPs for inflation, effective 2017, is provided by statute, with no discretion provided to agencies regarding the substance of the adjustments for inflation to CMPs. FinCEN is charged only with performing ministerial computations to determine the dollar amount of adjustments for inflation to CMPs. Accordingly, prior public notice and an opportunity for public comment and a delayed effective date are not required for this rule. II. Method of Calculation 4. Paperwork Reduction Act The method of calculating CMP adjustments applied in this final rule is required by the 2015 Act. Under the 2015 Act and the Office of Management and Budget (‘‘OMB’’) guidance required by the 2015 Act, annual inflation adjustments subsequent to the initial catch-up adjustment are to be based on the percent change between the Consumer Price Index for all Urban Consumers (‘‘CPI–U’’) for the October preceding the date of the adjustment and the prior year’s October CPI–U. As set forth in OMB Memorandum M–19– 04 of December 14, 2018, the adjustment multiplier for 2019 is 1.02522. In order to complete the 2019 annual adjustment, each current CMP is multiplied by the 2019 adjustment multiplier. Under the 2015 Act, any increase in CMP must be rounded to the nearest multiple of $1. The provisions of the Paperwork Reduction Act of 1995, Public Law 104– 13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this rule because there are no new or revised recordkeeping or reporting requirements. VerDate Sep<11>2014 16:03 Oct 09, 2019 Jkt 250001 2. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply. 3. Executive Order 12866 This rule is not a significant regulatory action as defined in section 3.f of Executive Order 12866. List of Subjects in 31 CFR Part 1010 Authority delegations (Government agencies), Administrative practice and procedure, Banks, banking, Brokers, Currency, Foreign banking, Foreign currencies, Gambling, Investigations, Penalties, Reporting and recordkeeping requirements, Securities, Terrorism. Authority and Issuance Procedural Matters For the reasons set forth in the preamble, part 1010 of chapter X of title 31 of the Code of Federal Regulations is amended as follows: 1. Administrative Procedure Act PART 1010—GENERAL PROVISIONS The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to make annual adjustments for inflation to CMPs without needing to provide notice and the opportunity for public comment required by 5 U.S.C. 553. Additionally, the methodology used for adjusting I. Background In order to improve the effectiveness of CMPs and to maintain their deterrent effect, the Federal Civil Penalties 54495 1 However, the increased CMPs apply only with respect to underlying violations occurring after the date of enactment of the 2015 Act, i.e., after November 2, 2015. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 1. The authority citation for part 1010 continues to read as follows: ■ Authority: 12 U.S.C. 1829b and 1951– 1959; 31 U.S.C. 5311–5314, 5316–5332; Title III, sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. 701, Pub. L. 114–74, 129 Stat. 599. 2. Amend § 1010.821 by revising Table 1 of § 1010.821 to read as follows: ■ § 1010.821 * Penalty adjustment and table. * * (b) * * * E:\FR\FM\10OCR1.SGM 10OCR1 * * 54496 Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Rules and Regulations TABLE 1 OF § 1010.821—PENALTY ADJUSTMENT TABLE U.S. Code citation 12 12 31 31 U.S.C. U.S.C. U.S.C. U.S.C. 1829b(j) ........................... 1955 ................................ 5318(k)(3)(C) .................. 5321(a)(1) ....................... 31 U.S.C. 5321(a)(5)(B)(i) ............... 31 U.S.C. 5321(a)(5)(C)(i)(I) ............ 31 U.S.C. 5321(a)(6)(A) .................. 31 U.S.C. 5321(a)(6)(B) .................. 31 U.S.C. 5321(a)(7) ....................... 31 U.S.C. 5330(e) ............................ Relating to Recordkeeping Violations For Funds Transfers ..................... Willful or Grossly Negligent Recordkeeping Violations ............................. Failure to Terminate Correspondent Relationship with Foreign Bank ...... General Civil Penalty ................................................................................. Provision for Willful Violations of Bank Secrecy Act Requirements ......... Foreign Financial Agency Transaction—Non-Willful Violation of Transaction. Foreign Financial Agency Transaction—Willful Violation of Transaction Negligent Violation by Financial Institution or Non-Financial Trade or Business. Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business. Violation of Certain Due Diligence Requirements, Prohibition on Correspondent Accounts for Shell Banks, and Special Measures. Civil Penalty for Failure to Register as Money Transmitting Business .... Jamal El-Hindi, Deputy Director, Financial Crimes Enforcement Network. BILLING CODE 4810–02–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG–2019–0794] RIN 1625–AA00 Safety Zone, Saint Simons Sound, GA; Correction Coast Guard, DHS. Temporary final rule; correction. AGENCY: 16:03 Oct 09, 2019 Jkt 250001 100,000 500 132,469 1,146 50,000 89,170 1,000,000 1,423,088 5,000 8,457 DEPARTMENT OF HOMELAND SECURITY If you have questions on this rule, call or email MST1 Rachel Crowe, Marine Safety Unit Savannah Office of Waterways Management, Coast Guard; Waterways Management, Coast Guard; telephone 912–652–4353, extension 243, or email Rachel.M.Crowe@uscg.mil. Coast Guard 33 CFR Part 165 [Docket Number USCG–2019–0799] RIN 1625–AA00 SUPPLEMENTARY INFORMATION: Safety Zone; Manasquan Inlet, Manasquan, NJ Correction AGENCY: In FR Rule Doc. 2019–20781, appearing on page 51413 in the Federal Register of Monday, September 30, 2019, the following corrections are made: On page 51413, in the first column in Instruction No. 2, ‘‘§ 2019–0974’’ is corrected to read ‘‘§ 165.T07–0794’’. The Coast Guard is correcting a temporary final rule that appeared in the Federal Register on September 30, 2019. The document issued an emergency temporary safety zone in response to the grounding/capsizing of the M/V GOLDEN RAY (31°07′39.66 North, 081°24′10.58 West, between Saint Simons Lighthouse and the north end of Jekyll Island, in the vicinity of green buoy #19). The rule was made enforceable from September 19, 2019, until no longer deemed necessary by the Captain of the Port Savannah. However, in the instruction and section heading of regulatory text, the docket number appeared instead of the CFR section number. SUMMARY: $21,039 21,039 14,231 57,317 ¥229,269 13,247 This correction is effective on October 10, 2019. ■ ACTION: $10,000 10,000 10,000 25,000 ¥100,000 10,000 DATES: FOR FURTHER INFORMATION CONTACT: [FR Doc. 2019–22094 Filed 10–9–19; 8:45 am] VerDate Sep<11>2014 Penalties as last amended by statute Civil monetary penalty description Maximum penalty amounts or range of minimum and maximum penalty amounts for penalties assessed on or after October 10, 2019 On page 51413, in the first column, the section heading ‘‘§ 2019–0794 Safety Zone; M/V GOLDEN RAY; Saint Simons Sound, GA.’’ is corrected to read, ‘‘§ 165.T07–0794 Safety Zone; M/V GOLDEN RAY; Saint Simons Sound, GA.’’ ■ Dated: October 3, 2019. M.W. Mumbach, Chief, Office of Regulations and Administrative Law, U.S. Coast Guard. [FR Doc. 2019–21902 Filed 10–9–19; 8:45 am] BILLING CODE 9110–04–P PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 ACTION: Coast Guard, DHS. Temporary final rule. The Coast Guard is establishing a temporary safety zone for certain waters of the Manasquan Inlet between Manasquan, NJ, and Point Pleasant Beach, NJ. This action is necessary to protect event participants, spectators, and vessels transiting the area from potential hazards during the Manasquan Inlet Intercoastal Tug marine event. During the enforcement period, unauthorized persons or vessels are prohibited from entering into, remaining within, transiting through, or anchoring in the safety zone unless authorized by the Captain of the Port Delaware Bay or a designated representative of the Captain of the Port. DATES: This rule is effective from noon to 2:30 p.m. on October 12, 2019. ADDRESSES: To view documents mentioned in this preamble as being available in the docket, go to https:// www.regulations.gov, type USCG–2019– 0799 in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket SUMMARY: E:\FR\FM\10OCR1.SGM 10OCR1

Agencies

[Federal Register Volume 84, Number 197 (Thursday, October 10, 2019)]
[Rules and Regulations]
[Pages 54495-54496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22094]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Part 1010


Financial Crimes Enforcement Network; Inflation Adjustment of 
Civil Monetary Penalties

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.

ACTION: Final rule.

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

SUMMARY: FinCEN publishes this final rule to reflect inflation 
adjustments to its civil monetary penalties (``CMPs'') as mandated by 
the Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (collectively referred to herein as ``the 
Act''). This rule adjusts certain CMPs within the jurisdiction of 
FinCEN to the maximum amount required by the Act.

DATES: Effective October 10, 2019.

FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at (800) 
767-2825 or email [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    In order to improve the effectiveness of CMPs and to maintain their 
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act 
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires 
Federal agencies to adjust each CMP provided by law within the 
jurisdiction of the agency. The 2015 Act requires agencies to adjust 
the level of CMPs with an initial ``catch-up'' adjustment through an 
interim final rulemaking and to make subsequent annual adjustments for 
inflation, without needing to provide notice and the opportunity for 
public comment otherwise required by 5 U.S.C. 553. The 2015 Act 
provides that any increase in a CMP shall apply to CMPs that are 
assessed after the date the increase takes effect, regardless of 
whether the underlying violation predated such increase.\1\
---------------------------------------------------------------------------

    \1\ However, the increased CMPs apply only with respect to 
underlying violations occurring after the date of enactment of the 
2015 Act, i.e., after November 2, 2015.
---------------------------------------------------------------------------

II. Method of Calculation

    The method of calculating CMP adjustments applied in this final 
rule is required by the 2015 Act. Under the 2015 Act and the Office of 
Management and Budget (``OMB'') guidance required by the 2015 Act, 
annual inflation adjustments subsequent to the initial catch-up 
adjustment are to be based on the percent change between the Consumer 
Price Index for all Urban Consumers (``CPI-U'') for the October 
preceding the date of the adjustment and the prior year's October CPI-
U. As set forth in OMB Memorandum M-19-04 of December 14, 2018, the 
adjustment multiplier for 2019 is 1.02522. In order to complete the 
2019 annual adjustment, each current CMP is multiplied by the 2019 
adjustment multiplier. Under the 2015 Act, any increase in CMP must be 
rounded to the nearest multiple of $1.

Procedural Matters

1. Administrative Procedure Act
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to 
make annual adjustments for inflation to CMPs without needing to 
provide notice and the opportunity for public comment required by 5 
U.S.C. 553. Additionally, the methodology used for adjusting CMPs for 
inflation, effective 2017, is provided by statute, with no discretion 
provided to agencies regarding the substance of the adjustments for 
inflation to CMPs. FinCEN is charged only with performing ministerial 
computations to determine the dollar amount of adjustments for 
inflation to CMPs. Accordingly, prior public notice and an opportunity 
for public comment and a delayed effective date are not required for 
this rule.
2. Regulatory Flexibility Act
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.
3. Executive Order 12866
    This rule is not a significant regulatory action as defined in 
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no new or 
revised recordkeeping or reporting requirements.

List of Subjects in 31 CFR Part 1010

    Authority delegations (Government agencies), Administrative 
practice and procedure, Banks, banking, Brokers, Currency, Foreign 
banking, Foreign currencies, Gambling, Investigations, Penalties, 
Reporting and recordkeeping requirements, Securities, Terrorism.

Authority and Issuance

    For the reasons set forth in the preamble, part 1010 of chapter X 
of title 31 of the Code of Federal Regulations is amended as follows:

PART 1010--GENERAL PROVISIONS

0
1. The authority citation for part 1010 continues to read as follows:

    Authority:  12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314, 
5316-5332; Title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; sec. 
701, Pub. L. 114-74, 129 Stat. 599.


0
2. Amend Sec.  1010.821 by revising Table 1 of Sec.  1010.821 to read 
as follows:


Sec.  1010.821  Penalty adjustment and table.

* * * * *
    (b) * * *

[[Page 54496]]



                              Table 1 of Sec.   1010.821--Penalty Adjustment Table
----------------------------------------------------------------------------------------------------------------
                                                                                                      Maximum
                                                                                                      penalty
                                                                                                    amounts or
                                                                                                     range of
                                                                                                    minimum and
                                                                                   Penalties as       maximum
             U.S. Code citation               Civil monetary penalty description   last amended       penalty
                                                                                    by statute      amounts for
                                                                                                     penalties
                                                                                                  assessed on or
                                                                                                   after October
                                                                                                     10, 2019
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1829b(j).........................  Relating to Recordkeeping                   $10,000         $21,039
                                              Violations For Funds Transfers.
12 U.S.C. 1955.............................  Willful or Grossly Negligent                 10,000          21,039
                                              Recordkeeping Violations.
31 U.S.C. 5318(k)(3)(C)....................  Failure to Terminate Correspondent           10,000          14,231
                                              Relationship with Foreign Bank.
31 U.S.C. 5321(a)(1).......................  General Civil Penalty..............          25,000          57,317
                                             Provision for Willful Violations of        -100,000        -229,269
                                              Bank Secrecy Act Requirements.
31 U.S.C. 5321(a)(5)(B)(i).................  Foreign Financial Agency                     10,000          13,247
                                              Transaction--Non-Willful Violation
                                              of Transaction.
31 U.S.C. 5321(a)(5)(C)(i)(I)..............  Foreign Financial Agency                    100,000         132,469
                                              Transaction--Willful Violation of
                                              Transaction.
31 U.S.C. 5321(a)(6)(A)....................  Negligent Violation by Financial                500           1,146
                                              Institution or Non-Financial Trade
                                              or Business.
31 U.S.C. 5321(a)(6)(B)....................  Pattern of Negligent Activity by             50,000          89,170
                                              Financial Institution or Non-
                                              Financial Trade or Business.
31 U.S.C. 5321(a)(7).......................  Violation of Certain Due Diligence        1,000,000       1,423,088
                                              Requirements, Prohibition on
                                              Correspondent Accounts for Shell
                                              Banks, and Special Measures.
31 U.S.C. 5330(e)..........................  Civil Penalty for Failure to                  5,000           8,457
                                              Register as Money Transmitting
                                              Business.
----------------------------------------------------------------------------------------------------------------


Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2019-22094 Filed 10-9-19; 8:45 am]
BILLING CODE 4810-02-P