Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Penalties, 7348-7349 [2021-01919]
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7348
Federal Register / Vol. 86, No. 17 / Thursday, January 28, 2021 / Rules and Regulations
PART 213—LEASING OF RESTRICTED
LANDS FOR MEMBERS OF FIVE
CIVILIZED TRIBES, OKLAHOMA, FOR
MINING
§ 227.24
[Amended]
15. In § 227.24, remove ‘‘$1,352’’ and
add in its place ‘‘$1,368’’.
■
PART 243—REINDEER IN ALASKA
7. The authority citation for part 213
continues to read as follows:
■
§ 213.37
Authority: Sec. 12, 50 Stat. 902; 25 U.S.C.
500K; and Sec. 701, Pub. L. 114–74, 129 Stat.
599.
§ 243.8
[Amended]
17. In § 243.8, in paragraph (a)
introductory text, remove ‘‘$6,376’’ and
add in its place ‘‘$6,451’’.
■
[Amended]
8. In § 213.37, remove ‘‘$1,352’’ and
add in its place ‘‘$1,368’’.
■
PART 225—OIL AND GAS,
GEOTHERMAL AND SOLID MINERALS
AGREEMENTS
9. The authority citation for part 225
continues to read as follows:
■
Authority: 25 U.S.C. 2, 9, and 2101–2108;
and Sec. 701, Pub. L. 114–74, 129 Stat. 599.
§ 225.37
16. The authority citation for part 243
continues to read as follows:
■
Authority: Sec. 2, 35 Stat. 312; sec. 18, 41
Stat. 426; sec. 1, 45 Stat. 495; sec. 1, 47 Stat.
777; 25 U.S.C. 356; and Sec. 701, Pub. L.
114–74, 129 Stat. 599. Interpret or apply secs.
3, 11, 35 Stat. 313, 316; sec. 8, 47 Stat. 779,
unless otherwise noted.
PART 249—OFF-RESERVATION
TREATY FISHING
18. The authority citation for part 249
continues to read as follows:
■
Authority: 25 U.S.C. 2, and 9; 5 U.S.C.
301; and Sec. 701, Pub. L. 114–74, 129 Stat.
599, unless otherwise noted.
§ 249.6
[Amended]
19. In § 249.6, in paragraph (b),
remove ‘‘$1,352’’ and add in its place
‘‘$1,368’’.
[Amended]
■
10. In § 225.37, in paragraph (a),
remove ‘‘$1,721’’ and add in its place
‘‘$1,741’’.
■
PART 226—LEASING OF OSAGE
RESERVATION LANDS FOR OIL AND
GAS MINING
11. The authority citation for part 226
continues to read as follows:
Tara Sweeney,
Assistant Secretary—Indian Affairs.
[FR Doc. 2021–01517 Filed 1–27–21; 8:45 am]
BILLING CODE 4337–15–P
■
DEPARTMENT OF THE TREASURY
Authority: Sec. 3, 34 Stat. 543; secs. 1, 2,
45 Stat. 1478; sec. 3, 52 Stat. 1034, 1035; sec.
2(a), 92 Stat. 1660; and Sec. 701, Pub. L. 114–
74, 129 Stat. 599.
Financial Crimes Enforcement Network
§ 226.42
Financial Crimes Enforcement
Network; Inflation Adjustment of Civil
Monetary Penalties
[Amended]
12. In § 226.42, remove ‘‘$965’’ and
add in its place ‘‘$976’’.
■
§ 226.43
13. In § 226.43:
a. Remove ‘‘$96’’ each time it appears
and add in each place ‘‘$97’’ wherever
it appears in this section.
■ b. In paragraph (e), remove ‘‘$193’’
and add in its place ‘‘$195’’.
■ c. In paragraph (f), remove ‘‘$385’’ and
add in its place ‘‘$390’’.
■ d. In paragraph (g), remove ‘‘$965’’
and add in its place ‘‘$976’’.
■
■
PART 227—LEASING OF CERTAIN
LANDS IN WIND RIVER INDIAN
RESERVATION, WYOMING, FOR OIL
AND GAS MINING
14. The authority citation for part 227
continues to read as follows:
■
Authority: Sec. 1, 39 Stat. 519; and Sec.
701, Pub. L. 114–74, 129 Stat. 599, unless
otherwise noted.
16:04 Jan 27, 2021
Financial Crimes Enforcement
Network (‘‘FinCEN’’), Treasury.
ACTION: Final rule.
AGENCY:
[Amended]
VerDate Sep<11>2014
31 CFR Part 1010
Jkt 253001
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. This rule adjusts certain
CMPs within the jurisdiction of FinCEN
to the maximum amount required by
that act.
DATES: Effective January 28, 2021.
FOR FURTHER INFORMATION CONTACT: The
FinCEN Regulatory Support Section at
1–800–767–2825, or electronically at
frc@fincen.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
In order to improve the effectiveness
of civil monetary penalties (‘‘CMPs’’)
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
and to maintain their deterrent effect,
the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, 28
U.S.C. 2461 note (the ‘‘Act’’), requires
Federal agencies to adjust each CMP
provided by law within the jurisdiction
of the agency. The 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 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
II. Method of Calculation
The method of calculating CMP
adjustments applied in this final rule is
required by the Act. Under the Act and
the Office of Management and Budget
(‘‘OMB’’) guidance required by the 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–21–
10 of December 23, 2020, the adjustment
multiplier for 2021 is 1.01182. In order
to complete the 2021 annual
adjustment, each current CMP is
multiplied by the 2021 adjustment
multiplier. Under the Act, any increase
in CMP must be rounded to the nearest
multiple of $1.2
Procedural Matters
1. Administrative Procedure Act
Section 4(b) of the Act 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
1 The increased CMPs, however, apply only with
respect to underlying violations occurring after
November 2, 2015 the date of enactment of the most
recent amendment to the Act.
2 FinCEN has previously described that it applied
a catch-up adjustment for each penalty subject to
the Act, based on the year and corresponding
amount(s) for which the maximum penalty or range
of minimum and maximum penalties was
established or last adjusted, whichever is later. See
Civil Monetary Penalty Adjustment and Table, 81
FR 42503, 42504 (June 30, 2016). Because the year
varies for different penalties, penalties that were
originally of the same size when promulgated can
have different values today pursuant to the
application of the Act.
E:\FR\FM\28JAR1.SGM
28JAR1
7349
Federal Register / Vol. 86, No. 17 / Thursday, January 28, 2021 / Rules and Regulations
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 and 13771
This rule is not a significant
regulatory action as defined in section
3(f) of Executive Order 12866, and, as a
result, this rule is not considered a
regulatory action under Executive Order
13771.
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
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 in paragraph (b) to read as
follows:
■
§ 1010.821
*
Penalty adjustment and table.
*
*
(b) * * *
*
*
TABLE 1 OF § 1010.821—PENALTY ADJUSTMENT TABLE
Penalties as
last amended by
statute
U.S. Code citation
Civil monetary penalty description
12 U.S.C. 1829b(j) .......................
12 U.S.C. 1955 ............................
31 U.S.C. 5318(k)(3)(C) ..............
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.
31 U.S.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) ........................
Kenneth A. Blanco,
Director, Financial Crimes Enforcement
Network.
DEPARTMENT OF VETERANS
AFFAIRS
[FR Doc. 2021–01919 Filed 1–27–21; 8:45 am]
38 CFR Part 17
BILLING CODE 4810–02–P
RIN 2900–AP46
Prosthetic and Rehabilitative Items and
Services; Delayed Effective Date
AGENCY:
ACTION:
Department of Veterans Affairs.
Final rule; delay of effective
date.
VerDate Sep<11>2014
16:04 Jan 27, 2021
Jkt 253001
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
Maximum penalty
amounts or range
of minimum and
maximum penalty
amounts for
penalties
assessed on or
after [INSERT
DATE OF
PUBLICATION IN
THE FEDERAL
REGISTER]
$10,000
10,000
10,000
$21,663
21,663
14,653
25,000–100,000
59,017–236,071
10,000
13,640
100,000
136,399
500
1,180
50,000
91,816
1,000,000
1,465,309
5,000
8,708
In accordance with the
Presidential directive as expressed in
the memorandum of January 20, 2021,
from the Assistant to the President and
Chief of Staff, entitled ‘‘Regulatory
Freeze Pending Review’’ and the OMB
guidance M–21–14, ‘‘Implementation of
Memorandum Concerning Regulatory
Freeze Pending Review’’, both issued on
January 20, 2021, this action
temporarily delays until February 26,
2021 the effective date of the rule
entitled Prosthetic and Rehabilitative
SUMMARY:
E:\FR\FM\28JAR1.SGM
28JAR1
]]>Agencies
[Federal Register Volume 86, Number 17 (Thursday, January 28, 2021)]
[Rules and Regulations]
[Pages 7348-7349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-01919]
=======================================================================
-----------------------------------------------------------------------
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. This rule adjusts certain CMPs within the jurisdiction of
FinCEN to the maximum amount required by that act.
DATES: Effective January 28, 2021.
FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Support Section
at 1-800-767-2825, or electronically at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
In order to improve the effectiveness of civil monetary penalties
(``CMPs'') and to maintain their deterrent effect, the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended, 28 U.S.C. 2461
note (the ``Act''), requires Federal agencies to adjust each CMP
provided by law within the jurisdiction of the agency. The 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 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\ The increased CMPs, however, apply only with respect to
underlying violations occurring after November 2, 2015 the date of
enactment of the most recent amendment to the Act.
---------------------------------------------------------------------------
II. Method of Calculation
The method of calculating CMP adjustments applied in this final
rule is required by the Act. Under the Act and the Office of Management
and Budget (``OMB'') guidance required by the 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-21-10 of December 23, 2020, the adjustment multiplier for
2021 is 1.01182. In order to complete the 2021 annual adjustment, each
current CMP is multiplied by the 2021 adjustment multiplier. Under the
Act, any increase in CMP must be rounded to the nearest multiple of
$1.\2\
---------------------------------------------------------------------------
\2\ FinCEN has previously described that it applied a catch-up
adjustment for each penalty subject to the Act, based on the year
and corresponding amount(s) for which the maximum penalty or range
of minimum and maximum penalties was established or last adjusted,
whichever is later. See Civil Monetary Penalty Adjustment and Table,
81 FR 42503, 42504 (June 30, 2016). Because the year varies for
different penalties, penalties that were originally of the same size
when promulgated can have different values today pursuant to the
application of the Act.
---------------------------------------------------------------------------
Procedural Matters
1. Administrative Procedure Act
Section 4(b) of the Act 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
[[Page 7349]]
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 and 13771
This rule is not a significant regulatory action as defined in
section 3(f) of Executive Order 12866, and, as a result, this rule is
not considered a regulatory action under Executive Order 13771.
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 in paragraph (b) to read as
follows:
Sec. 1010.821 Penalty adjustment and table.
* * * * *
(b) * * *
Table 1 of Sec. 1010.821--Penalty Adjustment Table
----------------------------------------------------------------------------------------------------------------
Maximum penalty
amounts or range
of minimum and
maximum penalty
Civil monetary penalty Penalties as last amounts for
U.S. Code citation description amended by penalties assessed
statute on or after
[INSERT DATE OF
PUBLICATION IN THE
FEDERAL REGISTER]
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1829b(j)...................... Relating to Recordkeeping $10,000 $21,663
Violations For Funds Transfers.
12 U.S.C. 1955.......................... Willful or Grossly Negligent 10,000 21,663
Recordkeeping Violations.
31 U.S.C. 5318(k)(3)(C)................. Failure to Terminate 10,000 14,653
Correspondent Relationship
with Foreign Bank.
31 U.S.C. 5321(a)(1).................... General Civil Penalty Provision 25,000-100,000 59,017-236,071
for Willful Violations of Bank
Secrecy Act Requirements.
31 U.S.C. 5321(a)(5)(B)(i).............. Foreign Financial Agency 10,000 13,640
Transaction--Non-Willful
Violation of Transaction.
31 U.S.C. 5321(a)(5)(C)(i)(I)........... Foreign Financial Agency 100,000 136,399
Transaction--Willful Violation
of Transaction.
31 U.S.C. 5321(a)(6)(A)................. Negligent Violation by 500 1,180
Financial Institution or Non-
Financial Trade or Business.
31 U.S.C. 5321(a)(6)(B)................. Pattern of Negligent Activity 50,000 91,816
by Financial Institution or
Non-Financial Trade or
Business.
31 U.S.C. 5321(a)(7).................... Violation of Certain Due 1,000,000 1,465,309
Diligence Requirements,
Prohibition on Correspondent
Accounts for Shell Banks, and
Special Measures.
31 U.S.C. 5330(e)....................... Civil Penalty for Failure to 5,000 8,708
Register as Money Transmitting
Business.
----------------------------------------------------------------------------------------------------------------
Kenneth A. Blanco,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2021-01919 Filed 1-27-21; 8:45 am]
BILLING CODE 4810-02-P
