Civil Monetary Penalty Inflation Adjustment, 3618-3622 [2025-00737]
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Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations
1990 Act, as amended, by the 2015
Act.12
for violations that occur on or after
January 15, 2025.
2. Other Adjustments
If a civil monetary penalty is subject
to a cost-of-living adjustment under the
1990 Act, as amended, but is adjusted
to an amount greater than the amount of
the adjustment required under the Act
within the 12 months preceding a
required cost-of-living adjustment, the
agency is not required to make the costof-living adjustment to that CMP in that
calendar year.13
2. New Penalty Amount in § 622.61(a)(2)
III. Yearly Adjustments
A. Mathematical Calculations of 2025
Adjustments
The adjustment requirement affects
two provisions of section 5.32(a) of the
Farm Credit Act. For the 2025 yearly
adjustments to the CMPs set forth by the
Farm Credit Act, the calculation
required by the 2024 White House
Office of Management and Budget
(OMB) guidance 14 is based on the
percentage by which the CPI for October
2024 exceeds the CPI for October 2023.
The OMB set forth guidance, as required
by the 2015 Act,15 with a multiplier for
calculating the new CMP values.16 The
2024 OMB multiplier for the 2025 CMPs
is 1.02598.
The adjustment also affects the CMPs
set by the Flood Disaster Protection Act
of 1973, as amended. The adjustment
multiplier is the same for all FCA
enforced CMPs, set at 1.02598. The
maximum CMPs for violations were
created in 2012 by the Biggert-Waters
Act, which amended the Flood Disaster
Protection Act of 1973.
1. New Penalty Amount in § 622.61(a)(1)
The inflation-adjusted CMP currently
in effect for violations of a final order
occurring on or after January 15, 2024,
is a maximum daily amount of $2,830.17
Multiplying the $2,830 CMP by the 2024
OMB multiplier, 1.02598, yields a total
of $2,903.52. When that number is
rounded as required by section 5(a) of
the 1990 Act, as amended, the inflationadjusted maximum increases to $2,904.
Thus, the new CMP maximum is $2,904,
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12 Pursuant
to section 5(a)(3) of the 2015 Act, any
increase determined under the subsection shall be
rounded to the nearest $1.
13 Pursuant to section 4(d) of the 1990 Act, as
amended.
14 OMB Circular M–25–02, Implementation of
Penalty Inflation Adjustments for 2025, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.
15 28 U.S.C. 2461 note, section 7(a).
16 OMB Circular M–25–02, Implementation of
Penalty Inflation Adjustments for 2025, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.
17 12 CFR 622.61(a)(1).
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The inflation-adjusted CMP currently
in effect for violations of the Farm
Credit Act or regulations issued under
the Farm Credit Act occurring on or
after January 15, 2024, is a maximum
daily amount of $1,280.18 Multiplying
the $1,280 CMP maximum by the 2024
OMB multiplier, 1.02598, yields a total
of $1,313.25. When that number is
rounded as required by section 5(a) of
the 1990 Act, as amended the inflationadjusted maximum increases to $1,313.
Thus, the new CMP maximum is $1,313,
for violations that occur on or after
January 15, 2025.
3. New Penalty Amounts for Flood
Insurance Violations Under § 622.61(b)
The existing maximum CMP for a
pattern or practice of flood insurance
violations pursuant to 42 U.S.C.
4012a(f)(5) occurring on or after January
15, 2024, is $2,661. Multiplying $2,661
by the 2024 OMB multiplier, 1.02598,
yields a total of $2,730.13. When that
number is rounded as required by
section 5(a) of the 1990 Act, as
amended, the new maximum
assessment of the CMP for violating 42
U.S.C. 4012a(f)(5) is $2,730. Thus, the
new CMP maximum is $2,730, for
violations that occur on or after January
15, 2025.
IV. Notice and Comment Not Required
by the Administrative Procedure Act
Section 4(b)(2) of the 1990 Act, as
amended by section 701 of the 2015 Act
(28 U.S.C. 2461 note), provides an
exemption from the Administrative
Procedure Act notice and comment
requirements in 5 U.S.C. 553. Further,
these revisions are ministerial,
technical, and noncontroversial. For
these reasons, the FCA has determined
to adopt this rule in final form.
V. Regulatory Flexibility Act
Pursuant to section 605(b) of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.), the FCA hereby certifies that
this final rule will not have a significant
economic impact on a substantial
number of small entities. Each of the
banks in the System, considered
together with its affiliated associations,
has assets and annual income in excess
of the amounts that would qualify them
as small entities. Therefore, System
institutions are not ‘‘small entities’’ as
defined in the Regulatory Flexibility
Act.
List of Subjects in 12 CFR Part 622
Administrative practice and
procedure, Crime, Investigations,
Penalties.
For the reasons stated in the
preamble, part 622 of chapter VI, title 12
of the Code of Federal Regulations is
amended to read as follows:
PART 622—RULES OF PRACTICE AND
PROCEDURE
1. The authority citation for part 622
continues to read as follows:
■
Authority: Secs. 5.9, 5.10, 5.17, 5.25–5.37
of the Farm Credit Act (12 U.S.C. 2243, 2244,
2252, 2261–2273); 28 U.S.C. 2461 note; and
42 U.S.C. 4012a(f).
■
2. Revise § 622.61 to read as follows:
§ 622.61 Adjustment of civil money
penalties by the rate of inflation under the
Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended.
(a) The maximum amount of each
civil money penalty within FCA’s
jurisdiction is adjusted in accordance
with the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended (28 U.S.C. 2461 note), as
follows:
(1) Amount of civil money penalty
imposed under section 5.32 of the Act
for violation of a final order issued
under section 5.25 or 5.26 of the Act:
The maximum daily amount is $2,904
for violations that occur on or after
January 15, 2025.
(2) Amount of civil money penalty for
violation of the Act or regulations: the
maximum daily amount is $1,313 for
each violation that occurs on or after
January 15, 2025.
(b) The maximum civil money penalty
amount assessed under 42 U.S.C.
4012a(f) is $2,730 for each violation that
occurs on or after January 15, 2025, with
no cap on the total amount of penalties
that can be assessed against any single
institution during any calendar year.
Dated: January 10, 2025.
Ashley Waldron,
Secretary to the Board, Farm Credit
Administration.
[FR Doc. 2025–00963 Filed 1–14–25; 8:45 am]
BILLING CODE 6705–01–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 747
RIN 3133–AF65
Civil Monetary Penalty Inflation
Adjustment
National Credit Union
Administration (NCUA).
AGENCY:
18 12
PO 00000
CFR 622.61(a)(2).
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Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations
ACTION:
Final rule.
The NCUA Board (Board) is
amending its regulations to adjust the
maximum amount of each civil
monetary penalty (CMP) within its
jurisdiction to account for inflation.
This action, including the amount of the
adjustments, is required under the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996 and the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015.
DATES: This final rule is effective
January 15, 2025.
FOR FURTHER INFORMATION CONTACT: Gira
Bose, Senior Staff Attorney, at 1775
Duke Street, Alexandria, VA 22314, via
email at gbose@ncua.gov, or by
telephone at (703) 518–6562.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Legal Background
II. Regulatory Procedures
I. Legal Background
A. Statutory Requirements
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Every Federal agency, including the
NCUA, is required by law to adjust its
maximum CMP amounts each year to
account for inflation. Prior to this being
an annual requirement, agencies were
required to adjust their CMPs at least
once every four years. The previous
four-year requirement stemmed from the
Debt Collection Improvement Act of
1996,1 which amended the Federal Civil
Penalties Inflation Adjustment Act of
1990.2
The current annual requirement stems
from the Bipartisan Budget Act of 2015,3
which contains the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
amendments).4 This legislation
provided for an initial ‘‘catch-up’’
adjustment of CMPs in 2016, followed
by annual adjustments. The catch-up
adjustment reset CMP maximum
amounts by setting aside the inflation
adjustments that agencies made in prior
years and instead calculated inflation
with reference to the year when each
CMP was enacted or last modified by
Congress. Agencies were required to
publish their catch-up adjustments in an
interim final rule by July 1, 2016, and
1 Public Law 104–134, Sec. 31001(s), 110 Stat.
1321–373 (Apr. 26, 1996). The law is codified at 28
U.S.C. 2461 note.
2 Public Law 101–410, 104 Stat. 890 (Oct. 5,
1990), codified at 28 U.S.C. 2461 note.
3 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015).
4 129 Stat. 599.
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make them effective by August 1, 2016.5
The NCUA complied with these
requirements in a June 2016 interim
final rule, followed by a November 2016
final rule to confirm the adjustments as
final.6
The 2015 amendments also specified
how agencies must conduct annual
inflation adjustments after the 2016
catch-up adjustment. Following the
catch-up adjustment, agencies must
make the required adjustments and
publish them in the Federal Register by
January 15 each year.7 For 2017, the
NCUA issued an interim final rule on
January 6, 2017,8 followed by a final
rule issued on June 23, 2017.9 For each
of the years 2018 through 2024, the
NCUA issued a final rule to satisfy the
agency’s annual requirements.10 This
final rule satisfies the agency’s
requirement for the 2025 annual
adjustment.
The law provides that the adjustments
shall be made notwithstanding the
section of the Administrative Procedure
Act (APA) that requires prior notice and
public comment for agency
rulemaking.11 The 2015 amendments
also specify that each CMP maximum
must be increased by the percentage by
which the consumer price index for
urban consumers (CPI–U) 12 for October
of the year immediately preceding the
year the adjustment is made exceeds the
CPI–U for October of the prior year.13
Thus, for the adjustment to be made in
2025, an agency must compare the
October 2023 and October 2024 CPI–U
figures.
An annual adjustment under the 2015
amendments is not required if a CMP
has been amended in the preceding 12
months pursuant to other authority.
Specifically, the statute provides that an
agency is not required to make an
annual adjustment to a CMP if in the
preceding 12 months it has been
increased by an amount greater than the
5 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
599 (Nov. 2, 2015).
6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov.
7, 2016).
7 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
599 (Nov. 2, 2015).
8 82 FR 7640 (Jan. 23, 2017).
9 82 FR 29710 (June 30, 2017).
10 83 FR 2029 (Jan. 16, 2018); 84 FR 2052 (Feb.
6, 2019); 85 FR 2009 (Jan. 14, 2020); 86 FR 933 (Jan.
7, 2021); 87 FR 377 (Jan. 5, 2022); 88 FR 1323 (Jan.
10, 2023); 89 FR 1441 (Jan. 10, 2024).
11 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 599 (Nov. 2, 2015).
12 This index is published by the Department of
Labor, Bureau of Labor Statistics, and is available
at its website: https://www.bls.gov/cpi/.
13 Public Law 114–74, Sec. 701(b)(2)(B), 129 Stat.
584, 600 (Nov. 2, 2015).
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3619
annual adjustment required by the 2015
amendments.14 The NCUA did not
make any adjustments in the preceding
12 months pursuant to other authority.
Therefore, this rulemaking adjusts all of
the NCUA’s CMPs pursuant to the 2015
amendments.
B. Application to the 2025 Adjustments
and Office of Management and Budget
Guidance
This section applies the statutory
requirements and the Office of
Management and Budget’s (OMB)
guidance to the NCUA’s CMPs and sets
forth the Board’s calculation of the 2025
adjustments.
The 2015 amendments directed OMB
to issue guidance to agencies on
implementing the inflation
adjustments.15 OMB is required to issue
its guidance each December and, with
respect to the 2025 annual adjustment,
did so on December 17, 2024.16 For
2025, Federal agencies must adjust the
maximum amounts of their CMPs by the
percentage by which the October 2024
CPI–U (315.664) exceeds the October
2023 CPI–U (307.671). The resulting
increase can be expressed as an inflation
multiplier (1.02598) to apply to each
current CMP maximum amount to
determine the adjusted maximum. The
OMB guidance also addresses
rulemaking procedures and agency
reporting and oversight requirements for
CMPs.17
The following table presents the
adjustment calculations. The current
maximums are found at 12 CFR
747.1001, as adjusted by the final rule
that the Board approved in January
2024. This amount is multiplied by the
inflation multiplier to calculate the new
maximum in the far-right column. Only
these adjusted maximum amounts, and
not the calculations, will be codified at
12 CFR 747.1001 under this final rule.
The adjusted amounts will be effective
upon publication in the Federal
Register and can be applied to
violations that occurred on or after
November 2, 2015, the date the 2015
amendments were enacted.18
14 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 600 (Nov. 2, 2015).
15 Public Law 114–74, Sec. 701(b)(4), 129 Stat.
584, 601 (Nov. 2, 2015).
16 See OMB Memorandum M–25–02,
Implementation of Penalty Inflation Adjustments
for 2025, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015
(Dec. 17, 2024).
17 Id.
18 Public Law 114–74, 129 Stat. 600 (Nov. 2,
2015).
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Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations
TABLE—CALCULATION OF MAXIMUM CMP ADJUSTMENTS
Description and tier 19
Current maximum
($)
12 U.S.C. 1782(a)(3) ..................
Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report.
Non-inadvertent failure to submit a report or the noninadvertent submission of a false or misleading report.
Failure to submit a report or the submission of a false
or misleading report done knowingly or with reckless disregard.
Tier 1 CMP for inadvertent failure to submit certified
statement of insured shares and charges due to the
National Credit Union Share Insurance Fund
(NCUSIF), or inadvertent submission of false or
misleading statement.
Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading
statement.
Tier 3 CMP for failure to submit a certified statement
or the submission of a false or misleading statement done knowingly or with reckless disregard.
Non-compliance with insurance logo requirements .....
Non-compliance with NCUA security requirements .....
Tier 1 CMP for violations of law, regulation, and other
orders or agreements.
Tier 2 CMP for violations of law, regulation, and other
orders or agreements and for recklessly engaging
in unsafe or unsound practices or breaches of fiduciary duty.
Tier 3 CMP for knowingly committing the violations
under Tier 1 or 2 (natural person).
Tier 3 CMP for knowingly committing the violations
under Tier 1 or 2 (insured credit union).
Non-compliance with senior examiner post-employment restrictions.
Non-compliance with appraisal independence standards (first violation).
Subsequent violations of the same ..............................
Non-compliance with flood insurance requirements ....
4,899 .................................
1.02598
5,026.
48,992 ...............................
1.02598
50,265.
Lesser of 2,449,575 or 1%
of total credit union (CU)
assets.
4,480 .................................
1.02598
Lesser of 2,513,215 or 1%
of total CU assets.
1.02598
4,596.
44,783 ...............................
1.02598
45,946.
Lesser of 2,239,210 or 1%
of total CU assets.
1.02598
Lesser of 2,297,385 or 1%
of total CU assets.
153 ....................................
356 ....................................
12,249 ...............................
1.02598
1.02598
1.02598
157.
365.
12,567.
61,238 ...............................
1.02598
62,829.
2,449,575 ..........................
1.02598
2,513,215.
Lesser of 2,449,575 or 1%
of total CU assets.
402,920 .............................
1.02598
1.02598
Lesser of 2,513,215 or 1%
of total CU assets.
413,388.
14,069 ...............................
1.02598
14,435.
28,135 ...............................
2,661 .................................
1.02598
1.02598
28,866.
2,730.
12 U.S.C. 1782(a)(3) ..................
12 U.S.C. 1782(a)(3) ..................
12 U.S.C. 1782(d)(2)(A) .............
12 U.S.C. 1782(d)(2)(B) .............
12 U.S.C. 1782(d)(2)(C) .............
12 U.S.C. 1785(a)(3) ..................
12 U.S.C. 1785(e)(3) ..................
12 U.S.C. 1786(k)(2)(A) .............
12 U.S.C. 1786(k)(2)(B) .............
12 U.S.C. 1786(k)(2)(C) .............
12 U.S.C. 1786(k)(2)(C) .............
12 U.S.C. 1786(w)(5)(A)(ii) ........
15 U.S.C. 1639e(k) ....................
15 U.S.C. 1639e(k) ....................
42 U.S.C. 4012a(f)(5) .................
II. Regulatory Procedures
A. Final Rule Under the APA
In the 2015 amendments, Congress
provided that agencies shall make the
required inflation adjustments in 2017
and subsequent years notwithstanding 5
U.S.C. 553, which generally requires
agencies to follow notice-and-comment
procedures in rulemaking and to make
rules effective no sooner than 30 days
after publication in the Federal
Register.20 The 2015 amendments
provide a clear exception to these
requirements.21 In addition, the Board
finds that notice-and-comment
procedures would be impracticable and
unnecessary under the APA because of
the largely ministerial and technical
nature of the final rule, which affords
agencies limited discretion in
promulgating the rule, and the statutory
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Adjusted maximum
($)
(current maximum
X multiplier, rounded to
nearest dollar)
Citation
19 The
table uses condensed descriptions of CMP
tiers. Refer to the U.S. Code citations for complete
descriptions.
20 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 599 (Nov. 2, 2015).
21 See 5 U.S.C. 559; Asiana Airlines v. Fed.
Aviation Admin., 134 F.3d 393, 396–99 (D.C. Cir.
1998).
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deadline for making the adjustments.22
In these circumstances, the Board finds
good cause to issue a final rule without
issuing a notice of proposed rulemaking
or soliciting public comments. The
Board also finds good cause to make the
final rule effective upon publication
because of the statutory deadline.
Accordingly, this final rule is issued
without prior notice and comment and
will become effective immediately upon
publication.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
generally requires that when an agency
issues a proposed rule or a final rule
pursuant to the APA 23 or another law,
the agency must prepare a regulatory
flexibility analysis that meets the
requirements of the RFA and publish
such analysis in the Federal Register.24
22 5 U.S.C. 553(b)(3)(B); see Mid-Tex. Elec. Co-op.,
Inc. v. Fed. Energy Regulatory Comm’n, 822 F.2d
1123 (D.C. Cir. 1987). For the same reasons, this
final rule does not include the usual 60-day
comment period under NCUA Interpretive Ruling
and Policy Statement (IRPS) 87–2, as amended by
IRPS 03–2 and 15–1 (Sept. 24, 2015).
23 5 U.S.C. 553(b).
24 5 U.S.C. 603, 604.
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Multiplier
Specifically, the RFA normally requires
agencies to describe the impact of a
rulemaking on small entities by
providing a regulatory impact analysis.
For purposes of the RFA, the Board
considers federally insured credit
unions with assets less than $100
million to be small entities.25
As discussed previously, consistent
with the APA, the Board has determined
for good cause that general notice and
opportunity for public comment is
unnecessary, and therefore the Board is
not issuing a notice of proposed
rulemaking.26 Rules that are exempt
from notice and comment procedures
are also exempt from the RFA
requirements, including conducting a
regulatory flexibility analysis, when
among other things the agency for good
cause finds that notice and public
procedure are impracticable,
unnecessary, or contrary to the public
interest.
Accordingly, the Board has concluded
that the RFA’s requirements relating to
25 NCUA
26 5
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IRPS 15–1.
U.S.C. 553(b)(3)(B).
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Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations
initial and final regulatory flexibility
analysis do not apply.
Nevertheless, the Board notes that this
final rule will not have a significant
economic impact on a substantial
number of small credit unions because
it affects only the maximum amounts of
CMPs that may be assessed in
individual cases, which are not
numerous and generally do not involve
assessments at the maximum level. In
addition, several of the CMPs are
limited to a percentage of a credit
union’s assets. Finally, in assessing
CMPs, the Board generally must
consider a party’s financial resources.27
Because this final rule will affect few, if
any, small credit unions, the Board
certifies that the final rule will not have
a significant economic impact on a
substantial number of small entities.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA) applies to rulemakings in which
an agency creates a new paperwork
burden on regulated entities or modifies
an existing burden.28 For purposes of
the PRA, a paperwork burden may take
the form of either a reporting or a
recordkeeping requirement, both
referred to as information collections.
This final rule adjusts the maximum
amounts of certain CMPs that the Board
may assess against individuals, entities,
or credit unions but does not require
any reporting or recordkeeping.
Therefore, this final rule will not create
new paperwork burdens or modify any
existing paperwork burdens.
D. Executive Order 13132
Executive Order 13132 encourages
independent regulatory agencies to
consider the impact of their actions on
state and local interests. In adherence to
fundamental federalism principles, the
NCUA, an independent regulatory
agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive
order. This final rule adjusts the
maximum amounts of certain CMPs that
the Board may assess against
individuals, entities, and federally
insured credit unions, including statechartered credit unions. However, the
final rule does not create any new
authority or alter the underlying
statutory authorities that enable the
Board to assess CMPs. Accordingly, this
final rule will not have a substantial
direct effect on the states, on the
connection between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government. The Board has
determined that this final rule does not
constitute a policy that has federalism
implications for purposes of the
executive order.
E. Assessment of Federal Regulations
and Policies on Families
The Board has determined that this
final rule will not affect family wellbeing within the meaning of Section 654
of the Treasury and General
Government Appropriations Act,
1999.29
F. Congressional Review Act
For purposes of the Congressional
Review Act,30 the OMB determines
whether a final rule constitutes a ‘‘major
rule.’’ If the OMB deems a rule to be a
‘‘major rule,’’ the Congressional Review
Act generally provides that the rule may
not take effect until at least 60 days
following its publication. As required by
the Congressional Review Act, the
Board submitted the final rule and other
appropriate reports to the OMB which
determined that this rule is not a ‘‘major
rule.’’ The Board will also be submitting
this rule to Congress and the
Government Accountability Office for
review.
The Congressional Review Act defines
a ‘‘major rule’’ as any rule that the
Administrator of the Office of
Information and Regulatory Affairs of
the OMB finds has resulted in or is
likely to result in (A) an annual effect
on the economy of $100,000,000 or
more; (B) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions; or (C) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreign-
U.S. Code citation
(1) 12 U.S.C. 1782(a)(3) ..........
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(2) 12 U.S.C. 1782(a)(3) ..........
(3) 12 U.S.C. 1782(a)(3) ..........
27 12
28 44
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based enterprises in domestic and
export markets.31
For the reasons previously stated, the
Board is adopting the final rule without
the delayed effective date generally
prescribed under the Congressional
Review Act. The delayed effective date
required by the Congressional Review
Act does not apply to any rule for which
an agency for good cause finds (and
incorporates the finding and a brief
statement of reasons therefor in the rule
issued) that notice and public
procedures thereon are impracticable,
unnecessary, or contrary to the public
interest.32
List of Subjects in 12 CFR Part 747
Civil monetary penalties, Credit
unions.
By the National Credit Union
Administration Board on January 10, 2025.
Ji Kwon,
Acting Secretary of the Board.
For the reasons stated in the
preamble, the Board amends 12 CFR
part 747 as follows:
PART 747—ADMINISTRATIVE
ACTIONS, ADJUDICATIVE HEARINGS,
RULES OF PRACTICE AND
PROCEDURE, AND INVESTIGATIONS
1. The authority for part 747
continues to read as follows:
■
Authority: 12 U.S.C. 1766, 1782, 1784,
1785, 1786, 1787, 1790a, 1790d; 15 U.S.C.
1639e; 42 U.S.C. 4012a; Public Law 101–410;
Public Law 104–134; Public Law 109–351;
Public Law 114–74.
2. Revise § 747.1001 to read as
follows:
■
§ 747.1001 Adjustment of civil monetary
penalties by the rate of inflation.
(a) The NCUA is required by the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410, 104 Stat. 890, as amended (28
U.S.C. 2461 note)), to adjust the
maximum amount of each civil
monetary penalty (CMP) within its
jurisdiction by the rate of inflation. The
following chart displays those adjusted
amounts, as calculated pursuant to the
statute:
CMP description
New maximum amount
Inadvertent failure to submit a report or the inadvertent submission of a false
or misleading report.
Non-inadvertent failure to submit a report or the non-inadvertent submission
of a false or misleading report.
Failure to submit a report or the submission of a false or misleading report
done knowingly or with reckless disregard.
U.S.C. 1786(k)(2)(G)(i).
U.S.C. 3507(d); 5 CFR part 1320.
15:48 Jan 14, 2025
Jkt 265001
29 Public Law 105–277, 112 Stat. 2681 (Oct. 21,
1998).
30 5 U.S.C. 801–808.
PO 00000
Frm 00021
Fmt 4700
3621
Sfmt 4700
$5,026.
$50,265.
$2,513,215 or 1% of the total assets of the credit
union, whichever is less.
31 5
32 5
E:\FR\FM\15JAR1.SGM
U.S.C. 804(2).
U.S.C. 808.
15JAR1
3622
Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Rules and Regulations
U.S. Code citation
CMP description
(4) 12 U.S.C. 1782(d)(2)(A) .....
Tier 1 CMP for inadvertent failure to submit certified statement of insured
shares and charges due to the National Credit Union Share Insurance
Fund (NCUSIF), or inadvertent submission of false or misleading statement.
Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading statement.
Tier 3 CMP for failure to submit a certified statement or the submission of a
false or misleading statement done knowingly or with reckless disregard.
Non-compliance with insurance logo requirements ............................................
Non-compliance with NCUA security requirements ...........................................
Tier 1 CMP for violations of law, regulation, and other orders or agreements ..
Tier 2 CMP for violations of law, regulation, and other orders or agreements
and for recklessly engaging in unsafe or unsound practices or breaches of
fiduciary duty.
Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural
person).
Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (insured
credit union).
Non-compliance with senior examiner post-employment restrictions ................
(5) 12 U.S.C. 1782(d)(2)(B) .....
(6) 12 U.S.C. 1782(d)(2)(C) .....
(7) 12 U.S.C. 1785(a)(3) ..........
(8) 12 U.S.C. 1785(e)(3) ..........
(9) 12 U.S.C. 1786(k)(2)(A) .....
(10) 12 U.S.C. 1786(k)(2)(B) ...
(11) 12 U.S.C. 1786(k)(2)(C) ...
(12) 12 U.S.C. 1786(k)(2)(C) ...
(13) 12 U.S.C.
1786(w)(5)(A)(ii).
(14) 15 U.S.C. 1639e(k) ..........
(15) 42 U.S.C. 4012a(f)(5) .......
Non-compliance with appraisal independence requirements .............................
Non-compliance with flood insurance requirements ...........................................
(b) The adjusted amounts displayed in
paragraph (a) of this section apply to
civil monetary penalties that are
assessed after the date the increase takes
effect, including those whose associated
violation or violations pre-dated the
increase and occurred on or after
November 2, 2015.
[FR Doc. 2025–00737 Filed 1–14–25; 8:45 am]
BILLING CODE 7535–01–P
CONSUMER FINANCIAL PROTECTION
BUREAU
12 CFR Part 1026
[Docket No. CFPB–2024–0032]
Truth in Lending (Regulation Z);
Consumer Credit Offered to Borrowers
in Advance of Expected Receipt of
Compensation for Work
Consumer Financial Protection
Bureau.
ACTION: Advisory opinion rescinding
previous advisory opinion.
AGENCY:
The Consumer Financial
Protection Bureau (CFPB) is issuing this
advisory opinion to rescind an advisory
opinion it issued in November 2020 that
described how one particular type of
‘‘earned wage’’ product does not involve
the offering or extension of ‘‘credit’’ as
that term is defined in the Truth in
Lending Act and Regulation Z.
DATES: This advisory opinion is
applicable January 15, 2025.
FOR FURTHER INFORMATION CONTACT:
George Karithanom, Regulatory
Implementation & Guidance Program
Analyst, Office of Regulations, at 202–
435–7700 or at: https://
reginquiries.consumerfinance.gov/. If
you require this document in an
lotter on DSK11XQN23PROD with RULES1
SUMMARY:
VerDate Sep<11>2014
New maximum amount
16:28 Jan 14, 2025
Jkt 265001
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
I. Advisory Opinion
A. Background
One major source of demand for
consumer credit is derived from the
mismatch of when American workers
receive compensation for their labor and
when they incur expenses. While there
have long been sources of credit for
consumers to pay expenses in advance
of receiving their compensation, there
are a number of new offerings that seek
to provide additional choices for
consumers.
Instead of being paid daily or upfront,
American workers generally provide
services before employers pay for those
services some time later—typically on a
biweekly or semi-monthly wage cycle.1
Employers have a strong incentive to
delay payment, since these delays
reduce working capital needs. Nearly
three-quarters of non-farm payroll
employees remain paid biweekly or
even less frequently, and the remainder
are generally paid their wages weekly.
To address liquidity challenges, many
consumers therefore turn to credit
products, such as payday loans,
personal installment loans, and credit
cards. In recent years, American
consumers have significantly expanded
their use of products sometimes
marketed as ‘‘earned wage access’’ or
‘‘earned wage advance.’’ 2 As these
1 While the terms ‘‘employer’’ and ‘‘employee’’
are used throughout, this advisory opinion applies
more broadly to situations where consumers receive
payment for work performed.
2 A recent CFPB report describes rapid recent
growth in one part of this developing market. See
CFPB, Developments in the Paycheck Advance
Market, at 3 (July 2024) (hereinafter 2024 Paycheck
Advance Report).
PO 00000
Frm 00022
Fmt 4700
Sfmt 4700
$4,596.
$45,946.
$2,297,385 or 1% of the total assets of the credit
union, whichever is less.
$157.
$365.
$12,567.
$62,829.
$2,513,215.
$2,513,215 or 1% of the total assets of the credit
union, whichever is less.
$413,388.
First violation: $14,435
Subsequent violations: $28,866.
$2,730.
paycheck advance products generally
have features that make them subject to
the CFPB’s jurisdiction, the CFPB has
sought to understand these and other
products, particularly those offered
online, by engaging in ongoing
monitoring of the market, including, for
example, collecting and analyzing data,
engaging with stakeholders (e.g., market
participants, consumer groups, and
States), tracking and studying market
developments, and conducting market
research, among other things.
While many of these products have
similarities to payday loans, there are
important distinctions. The CFPB has
found that there are two emerging
models of earned wage products:
employer-partnered and direct-toconsumer.
For ‘‘employer-partnered’’ products,
providers contract with employers to
offer funds in amounts not exceeding
accrued wages. Those funds are
recovered via one or more payroll
deductions, lowering the consumer’s
paychecks accordingly, with other
recourse options generally unavailable
to the provider. In contrast, ‘‘direct-toconsumer’’ products provide funds to
employees in amounts that are not as
strictly limited by accrued wages. Some
of these products limit advances to an
amount estimated to be below accrued
wages and do not consider other factors.
Others consider estimated accrued
wages as one of several factors when
determining the amount to advance.
Still others do not expressly state that
estimated accrued wages are a factor
considered despite being marketed as
earned wage products. Regardless of the
exact model, funds are generally
recovered via automated withdrawal
E:\FR\FM\15JAR1.SGM
15JAR1
]]>Agencies
[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Rules and Regulations]
[Pages 3618-3622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00737]
=======================================================================
-----------------------------------------------------------------------
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 747
RIN 3133-AF65
Civil Monetary Penalty Inflation Adjustment
AGENCY: National Credit Union Administration (NCUA).
[[Page 3619]]
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The NCUA Board (Board) is amending its regulations to adjust
the maximum amount of each civil monetary penalty (CMP) within its
jurisdiction to account for inflation. This action, including the
amount of the adjustments, is required under the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Debt
Collection Improvement Act of 1996 and the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015.
DATES: This final rule is effective January 15, 2025.
FOR FURTHER INFORMATION CONTACT: Gira Bose, Senior Staff Attorney, at
1775 Duke Street, Alexandria, VA 22314, via email at [email protected], or
by telephone at (703) 518-6562.
SUPPLEMENTARY INFORMATION:
I. Legal Background
II. Regulatory Procedures
I. Legal Background
A. Statutory Requirements
Every Federal agency, including the NCUA, is required by law to
adjust its maximum CMP amounts each year to account for inflation.
Prior to this being an annual requirement, agencies were required to
adjust their CMPs at least once every four years. The previous four-
year requirement stemmed from the Debt Collection Improvement Act of
1996,\1\ which amended the Federal Civil Penalties Inflation Adjustment
Act of 1990.\2\
---------------------------------------------------------------------------
\1\ Public Law 104-134, Sec. 31001(s), 110 Stat. 1321-373 (Apr.
26, 1996). The law is codified at 28 U.S.C. 2461 note.
\2\ Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), codified
at 28 U.S.C. 2461 note.
---------------------------------------------------------------------------
The current annual requirement stems from the Bipartisan Budget Act
of 2015,\3\ which contains the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (the 2015 amendments).\4\ This
legislation provided for an initial ``catch-up'' adjustment of CMPs in
2016, followed by annual adjustments. The catch-up adjustment reset CMP
maximum amounts by setting aside the inflation adjustments that
agencies made in prior years and instead calculated inflation with
reference to the year when each CMP was enacted or last modified by
Congress. Agencies were required to publish their catch-up adjustments
in an interim final rule by July 1, 2016, and make them effective by
August 1, 2016.\5\ The NCUA complied with these requirements in a June
2016 interim final rule, followed by a November 2016 final rule to
confirm the adjustments as final.\6\
---------------------------------------------------------------------------
\3\ Public Law 114-74, 129 Stat. 584 (Nov. 2, 2015).
\4\ 129 Stat. 599.
\5\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\6\ 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 7, 2016).
---------------------------------------------------------------------------
The 2015 amendments also specified how agencies must conduct annual
inflation adjustments after the 2016 catch-up adjustment. Following the
catch-up adjustment, agencies must make the required adjustments and
publish them in the Federal Register by January 15 each year.\7\ For
2017, the NCUA issued an interim final rule on January 6, 2017,\8\
followed by a final rule issued on June 23, 2017.\9\ For each of the
years 2018 through 2024, the NCUA issued a final rule to satisfy the
agency's annual requirements.\10\ This final rule satisfies the
agency's requirement for the 2025 annual adjustment.
---------------------------------------------------------------------------
\7\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\8\ 82 FR 7640 (Jan. 23, 2017).
\9\ 82 FR 29710 (June 30, 2017).
\10\ 83 FR 2029 (Jan. 16, 2018); 84 FR 2052 (Feb. 6, 2019); 85
FR 2009 (Jan. 14, 2020); 86 FR 933 (Jan. 7, 2021); 87 FR 377 (Jan.
5, 2022); 88 FR 1323 (Jan. 10, 2023); 89 FR 1441 (Jan. 10, 2024).
---------------------------------------------------------------------------
The law provides that the adjustments shall be made notwithstanding
the section of the Administrative Procedure Act (APA) that requires
prior notice and public comment for agency rulemaking.\11\ The 2015
amendments also specify that each CMP maximum must be increased by the
percentage by which the consumer price index for urban consumers (CPI-
U) \12\ for October of the year immediately preceding the year the
adjustment is made exceeds the CPI-U for October of the prior year.\13\
Thus, for the adjustment to be made in 2025, an agency must compare the
October 2023 and October 2024 CPI-U figures.
---------------------------------------------------------------------------
\11\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\12\ This index is published by the Department of Labor, Bureau
of Labor Statistics, and is available at its website: https://www.bls.gov/cpi/.
\13\ Public Law 114-74, Sec. 701(b)(2)(B), 129 Stat. 584, 600
(Nov. 2, 2015).
---------------------------------------------------------------------------
An annual adjustment under the 2015 amendments is not required if a
CMP has been amended in the preceding 12 months pursuant to other
authority. Specifically, the statute provides that an agency is not
required to make an annual adjustment to a CMP if in the preceding 12
months it has been increased by an amount greater than the annual
adjustment required by the 2015 amendments.\14\ The NCUA did not make
any adjustments in the preceding 12 months pursuant to other authority.
Therefore, this rulemaking adjusts all of the NCUA's CMPs pursuant to
the 2015 amendments.
---------------------------------------------------------------------------
\14\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 600 (Nov.
2, 2015).
---------------------------------------------------------------------------
B. Application to the 2025 Adjustments and Office of Management and
Budget Guidance
This section applies the statutory requirements and the Office of
Management and Budget's (OMB) guidance to the NCUA's CMPs and sets
forth the Board's calculation of the 2025 adjustments.
The 2015 amendments directed OMB to issue guidance to agencies on
implementing the inflation adjustments.\15\ OMB is required to issue
its guidance each December and, with respect to the 2025 annual
adjustment, did so on December 17, 2024.\16\ For 2025, Federal agencies
must adjust the maximum amounts of their CMPs by the percentage by
which the October 2024 CPI-U (315.664) exceeds the October 2023 CPI-U
(307.671). The resulting increase can be expressed as an inflation
multiplier (1.02598) to apply to each current CMP maximum amount to
determine the adjusted maximum. The OMB guidance also addresses
rulemaking procedures and agency reporting and oversight requirements
for CMPs.\17\
---------------------------------------------------------------------------
\15\ Public Law 114-74, Sec. 701(b)(4), 129 Stat. 584, 601 (Nov.
2, 2015).
\16\ See OMB Memorandum M-25-02, Implementation of Penalty
Inflation Adjustments for 2025, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec.
17, 2024).
\17\ Id.
---------------------------------------------------------------------------
The following table presents the adjustment calculations. The
current maximums are found at 12 CFR 747.1001, as adjusted by the final
rule that the Board approved in January 2024. This amount is multiplied
by the inflation multiplier to calculate the new maximum in the far-
right column. Only these adjusted maximum amounts, and not the
calculations, will be codified at 12 CFR 747.1001 under this final
rule. The adjusted amounts will be effective upon publication in the
Federal Register and can be applied to violations that occurred on or
after November 2, 2015, the date the 2015 amendments were enacted.\18\
---------------------------------------------------------------------------
\18\ Public Law 114-74, 129 Stat. 600 (Nov. 2, 2015).
[[Page 3620]]
Table--Calculation of Maximum CMP Adjustments
----------------------------------------------------------------------------------------------------------------
Adjusted maximum
($) (current
Citation Description and Current maximum ($) Multiplier maximum X
tier \19\ multiplier, rounded
to nearest dollar)
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1782(a)(3)............. Inadvertent failure 4,899.............. 1.02598 5,026.
to submit a report
or the inadvertent
submission of a
false or
misleading report.
12 U.S.C. 1782(a)(3)............. Non-inadvertent 48,992............. 1.02598 50,265.
failure to submit
a report or the
non-inadvertent
submission of a
false or
misleading report.
12 U.S.C. 1782(a)(3)............. Failure to submit a Lesser of 2,449,575 1.02598 Lesser of 2,513,215
report or the or 1% of total or 1% of total CU
submission of a credit union (CU) assets.
false or assets.
misleading report
done knowingly or
with reckless
disregard.
12 U.S.C. 1782(d)(2)(A).......... Tier 1 CMP for 4,480.............. 1.02598 4,596.
inadvertent
failure to submit
certified
statement of
insured shares and
charges due to the
National Credit
Union Share
Insurance Fund
(NCUSIF), or
inadvertent
submission of
false or
misleading
statement.
12 U.S.C. 1782(d)(2)(B).......... Tier 2 CMP for non- 44,783............. 1.02598 45,946.
inadvertent
failure to submit
certified
statement or
submission of
false or
misleading
statement.
12 U.S.C. 1782(d)(2)(C).......... Tier 3 CMP for Lesser of 2,239,210 1.02598 Lesser of 2,297,385
failure to submit or 1% of total CU or 1% of total CU
a certified assets. assets.
statement or the
submission of a
false or
misleading
statement done
knowingly or with
reckless disregard.
12 U.S.C. 1785(a)(3)............. Non-compliance with 153................ 1.02598 157.
insurance logo
requirements.
12 U.S.C. 1785(e)(3)............. Non-compliance with 356................ 1.02598 365.
NCUA security
requirements.
12 U.S.C. 1786(k)(2)(A).......... Tier 1 CMP for 12,249............. 1.02598 12,567.
violations of law,
regulation, and
other orders or
agreements.
12 U.S.C. 1786(k)(2)(B).......... Tier 2 CMP for 61,238............. 1.02598 62,829.
violations of law,
regulation, and
other orders or
agreements and for
recklessly
engaging in unsafe
or unsound
practices or
breaches of
fiduciary duty.
12 U.S.C. 1786(k)(2)(C).......... Tier 3 CMP for 2,449,575.......... 1.02598 2,513,215.
knowingly
committing the
violations under
Tier 1 or 2
(natural person).
12 U.S.C. 1786(k)(2)(C).......... Tier 3 CMP for Lesser of 2,449,575 1.02598 Lesser of 2,513,215
knowingly or 1% of total CU or 1% of total CU
committing the assets. assets.
violations under
Tier 1 or 2
(insured credit
union).
12 U.S.C. 1786(w)(5)(A)(ii)...... Non-compliance with 402,920............ 1.02598 413,388.
senior examiner
post-employment
restrictions.
15 U.S.C. 1639e(k)............... Non-compliance with 14,069............. 1.02598 14,435.
appraisal
independence
standards (first
violation).
15 U.S.C. 1639e(k)............... Subsequent 28,135............. 1.02598 28,866.
violations of the
same.
42 U.S.C. 4012a(f)(5)............ Non-compliance with 2,661.............. 1.02598 2,730.
flood insurance
requirements.
----------------------------------------------------------------------------------------------------------------
II. Regulatory Procedures
---------------------------------------------------------------------------
\19\ The table uses condensed descriptions of CMP tiers. Refer
to the U.S. Code citations for complete descriptions.
---------------------------------------------------------------------------
A. Final Rule Under the APA
In the 2015 amendments, Congress provided that agencies shall make
the required inflation adjustments in 2017 and subsequent years
notwithstanding 5 U.S.C. 553, which generally requires agencies to
follow notice-and-comment procedures in rulemaking and to make rules
effective no sooner than 30 days after publication in the Federal
Register.\20\ The 2015 amendments provide a clear exception to these
requirements.\21\ In addition, the Board finds that notice-and-comment
procedures would be impracticable and unnecessary under the APA because
of the largely ministerial and technical nature of the final rule,
which affords agencies limited discretion in promulgating the rule, and
the statutory deadline for making the adjustments.\22\ In these
circumstances, the Board finds good cause to issue a final rule without
issuing a notice of proposed rulemaking or soliciting public comments.
The Board also finds good cause to make the final rule effective upon
publication because of the statutory deadline. Accordingly, this final
rule is issued without prior notice and comment and will become
effective immediately upon publication.
---------------------------------------------------------------------------
\20\ Public Law 114-74, Sec. 701(b)(1), 129 Stat. 584, 599 (Nov.
2, 2015).
\21\ See 5 U.S.C. 559; Asiana Airlines v. Fed. Aviation Admin.,
134 F.3d 393, 396-99 (D.C. Cir. 1998).
\22\ 5 U.S.C. 553(b)(3)(B); see Mid-Tex. Elec. Co-op., Inc. v.
Fed. Energy Regulatory Comm'n, 822 F.2d 1123 (D.C. Cir. 1987). For
the same reasons, this final rule does not include the usual 60-day
comment period under NCUA Interpretive Ruling and Policy Statement
(IRPS) 87-2, as amended by IRPS 03-2 and 15-1 (Sept. 24, 2015).
---------------------------------------------------------------------------
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires that when
an agency issues a proposed rule or a final rule pursuant to the APA
\23\ or another law, the agency must prepare a regulatory flexibility
analysis that meets the requirements of the RFA and publish such
analysis in the Federal Register.\24\ Specifically, the RFA normally
requires agencies to describe the impact of a rulemaking on small
entities by providing a regulatory impact analysis. For purposes of the
RFA, the Board considers federally insured credit unions with assets
less than $100 million to be small entities.\25\
---------------------------------------------------------------------------
\23\ 5 U.S.C. 553(b).
\24\ 5 U.S.C. 603, 604.
\25\ NCUA IRPS 15-1.
---------------------------------------------------------------------------
As discussed previously, consistent with the APA, the Board has
determined for good cause that general notice and opportunity for
public comment is unnecessary, and therefore the Board is not issuing a
notice of proposed rulemaking.\26\ Rules that are exempt from notice
and comment procedures are also exempt from the RFA requirements,
including conducting a regulatory flexibility analysis, when among
other things the agency for good cause finds that notice and public
procedure are impracticable, unnecessary, or contrary to the public
interest.
---------------------------------------------------------------------------
\26\ 5 U.S.C. 553(b)(3)(B).
---------------------------------------------------------------------------
Accordingly, the Board has concluded that the RFA's requirements
relating to
[[Page 3621]]
initial and final regulatory flexibility analysis do not apply.
Nevertheless, the Board notes that this final rule will not have a
significant economic impact on a substantial number of small credit
unions because it affects only the maximum amounts of CMPs that may be
assessed in individual cases, which are not numerous and generally do
not involve assessments at the maximum level. In addition, several of
the CMPs are limited to a percentage of a credit union's assets.
Finally, in assessing CMPs, the Board generally must consider a party's
financial resources.\27\ Because this final rule will affect few, if
any, small credit unions, the Board certifies that the final rule will
not have a significant economic impact on a substantial number of small
entities.
---------------------------------------------------------------------------
\27\ 12 U.S.C. 1786(k)(2)(G)(i).
---------------------------------------------------------------------------
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) applies to rulemakings in
which an agency creates a new paperwork burden on regulated entities or
modifies an existing burden.\28\ For purposes of the PRA, a paperwork
burden may take the form of either a reporting or a recordkeeping
requirement, both referred to as information collections. This final
rule adjusts the maximum amounts of certain CMPs that the Board may
assess against individuals, entities, or credit unions but does not
require any reporting or recordkeeping. Therefore, this final rule will
not create new paperwork burdens or modify any existing paperwork
burdens.
---------------------------------------------------------------------------
\28\ 44 U.S.C. 3507(d); 5 CFR part 1320.
---------------------------------------------------------------------------
D. Executive Order 13132
Executive Order 13132 encourages independent regulatory agencies to
consider the impact of their actions on state and local interests. In
adherence to fundamental federalism principles, the NCUA, an
independent regulatory agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive order. This final rule adjusts
the maximum amounts of certain CMPs that the Board may assess against
individuals, entities, and federally insured credit unions, including
state-chartered credit unions. However, the final rule does not create
any new authority or alter the underlying statutory authorities that
enable the Board to assess CMPs. Accordingly, this final rule will not
have a substantial direct effect on the states, on the connection
between the national government and the states, or on the distribution
of power and responsibilities among the various levels of government.
The Board has determined that this final rule does not constitute a
policy that has federalism implications for purposes of the executive
order.
E. Assessment of Federal Regulations and Policies on Families
The Board has determined that this final rule will not affect
family well-being within the meaning of Section 654 of the Treasury and
General Government Appropriations Act, 1999.\29\
---------------------------------------------------------------------------
\29\ Public Law 105-277, 112 Stat. 2681 (Oct. 21, 1998).
---------------------------------------------------------------------------
F. Congressional Review Act
For purposes of the Congressional Review Act,\30\ the OMB
determines whether a final rule constitutes a ``major rule.'' If the
OMB deems a rule to be a ``major rule,'' the Congressional Review Act
generally provides that the rule may not take effect until at least 60
days following its publication. As required by the Congressional Review
Act, the Board submitted the final rule and other appropriate reports
to the OMB which determined that this rule is not a ``major rule.'' The
Board will also be submitting this rule to Congress and the Government
Accountability Office for review.
---------------------------------------------------------------------------
\30\ 5 U.S.C. 801-808.
---------------------------------------------------------------------------
The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of the OMB finds has resulted in or is likely to result in (A)
an annual effect on the economy of $100,000,000 or more; (B) a major
increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies or geographic regions; or
(C) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic and
export markets.\31\
---------------------------------------------------------------------------
\31\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------
For the reasons previously stated, the Board is adopting the final
rule without the delayed effective date generally prescribed under the
Congressional Review Act. The delayed effective date required by the
Congressional Review Act does not apply to any rule for which an agency
for good cause finds (and incorporates the finding and a brief
statement of reasons therefor in the rule issued) that notice and
public procedures thereon are impracticable, unnecessary, or contrary
to the public interest.\32\
---------------------------------------------------------------------------
\32\ 5 U.S.C. 808.
---------------------------------------------------------------------------
List of Subjects in 12 CFR Part 747
Civil monetary penalties, Credit unions.
By the National Credit Union Administration Board on January 10,
2025.
Ji Kwon,
Acting Secretary of the Board.
For the reasons stated in the preamble, the Board amends 12 CFR
part 747 as follows:
PART 747--ADMINISTRATIVE ACTIONS, ADJUDICATIVE HEARINGS, RULES OF
PRACTICE AND PROCEDURE, AND INVESTIGATIONS
0
1. The authority for part 747 continues to read as follows:
Authority: 12 U.S.C. 1766, 1782, 1784, 1785, 1786, 1787, 1790a,
1790d; 15 U.S.C. 1639e; 42 U.S.C. 4012a; Public Law 101-410; Public
Law 104-134; Public Law 109-351; Public Law 114-74.
0
2. Revise Sec. 747.1001 to read as follows:
Sec. 747.1001 Adjustment of civil monetary penalties by the rate of
inflation.
(a) The NCUA is required by the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note)), to adjust the maximum amount of each civil monetary
penalty (CMP) within its jurisdiction by the rate of inflation. The
following chart displays those adjusted amounts, as calculated pursuant
to the statute:
------------------------------------------------------------------------
U.S. Code citation CMP description New maximum amount
------------------------------------------------------------------------
(1) 12 U.S.C. 1782(a)(3)........ Inadvertent $5,026.
failure to submit
a report or the
inadvertent
submission of a
false or
misleading report.
(2) 12 U.S.C. 1782(a)(3)........ Non-inadvertent $50,265.
failure to submit
a report or the
non-inadvertent
submission of a
false or
misleading report.
(3) 12 U.S.C. 1782(a)(3)........ Failure to submit $2,513,215 or 1%
a report or the of the total
submission of a assets of the
false or credit union,
misleading report whichever is
done knowingly or less.
with reckless
disregard.
[[Page 3622]]
(4) 12 U.S.C. 1782(d)(2)(A)..... Tier 1 CMP for $4,596.
inadvertent
failure to submit
certified
statement of
insured shares
and charges due
to the National
Credit Union
Share Insurance
Fund (NCUSIF), or
inadvertent
submission of
false or
misleading
statement.
(5) 12 U.S.C. 1782(d)(2)(B)..... Tier 2 CMP for non- $45,946.
inadvertent
failure to submit
certified
statement or
submission of
false or
misleading
statement.
(6) 12 U.S.C. 1782(d)(2)(C)..... Tier 3 CMP for $2,297,385 or 1%
failure to submit of the total
a certified assets of the
statement or the credit union,
submission of a whichever is
false or less.
misleading
statement done
knowingly or with
reckless
disregard.
(7) 12 U.S.C. 1785(a)(3)........ Non-compliance $157.
with insurance
logo requirements.
(8) 12 U.S.C. 1785(e)(3)........ Non-compliance $365.
with NCUA
security
requirements.
(9) 12 U.S.C. 1786(k)(2)(A)..... Tier 1 CMP for $12,567.
violations of
law, regulation,
and other orders
or agreements.
(10) 12 U.S.C. 1786(k)(2)(B).... Tier 2 CMP for $62,829.
violations of
law, regulation,
and other orders
or agreements and
for recklessly
engaging in
unsafe or unsound
practices or
breaches of
fiduciary duty.
(11) 12 U.S.C. 1786(k)(2)(C).... Tier 3 CMP for $2,513,215.
knowingly
committing the
violations under
Tier 1 or 2
(natural person).
(12) 12 U.S.C. 1786(k)(2)(C).... Tier 3 CMP for $2,513,215 or 1%
knowingly of the total
committing the assets of the
violations under credit union,
Tier 1 or 2 whichever is
(insured credit less.
union).
(13) 12 U.S.C. 1786(w)(5)(A)(ii) Non-compliance $413,388.
with senior
examiner post-
employment
restrictions.
(14) 15 U.S.C. 1639e(k)......... Non-compliance First violation:
with appraisal $14,435
independence Subsequent
requirements. violations:
$28,866.
(15) 42 U.S.C. 4012a(f)(5)...... Non-compliance $2,730.
with flood
insurance
requirements.
------------------------------------------------------------------------
(b) The adjusted amounts displayed in paragraph (a) of this section
apply to civil monetary penalties that are assessed after the date the
increase takes effect, including those whose associated violation or
violations pre-dated the increase and occurred on or after November 2,
2015.
[FR Doc. 2025-00737 Filed 1-14-25; 8:45 am]
BILLING CODE 7535-01-P
