Civil Monetary Penalties Inflation Adjustment
Federal Register, Volume 83 Issue 19 (Monday, January 29, 2018)
Federal Register Volume 83, Number 19 (Monday, January 29, 2018)
Rules and Regulations
Pages 3944-3948
From the Federal Register Online via the Government Publishing Office www.gpo.gov
FR Doc No: 2018-01464
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DEPARTMENT OF JUSTICE
28 CFR Part 85
Docket No. OAG 159; AG Order No. 4093-2018
Civil Monetary Penalties Inflation Adjustment
AGENCY: Department of Justice.
ACTION: Final rule.
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SUMMARY: The Department of Justice is adjusting for inflation the civil monetary penalties assessed or enforced by components of the Department, in accordance with the provisions of the Bipartisan Budget Act of 2015, for penalties assessed after January 29, 2018, with respect to violations occurring after November 2, 2015.
DATES: This rule is effective January 29, 2018.
FOR FURTHER INFORMATION CONTACT: Robert Hinchman, Senior Counsel, Office of Legal Policy, U.S. Department of Justice, Room 4252 RFK Building, 950 Pennsylvania Avenue NW, Washington, DC 20530, telephone (202) 514-8059 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
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Statutory Process for Implementing Annual Inflation Adjustments
Section 701 of the Bipartisan Budget Act of 2015, Public Law 114-74 (Nov. 2, 2015) (``BBA''), 28 U.S.C. 2461 note, substantially revised the prior provisions of the Federal Civil Monetary Penalties Inflation Adjustment Act of 1990, Public Law 101-410 (the ``Inflation Adjustment Act''), and substituted a different statutory formula for calculating inflation adjustments on an annual basis.
In accordance with the provisions of the BBA, on June 30, 2016 (81 FR 42491), the Department of Justice published an interim rule to adjust for inflation the civil monetary penalties assessed or enforced by components of the Department after August 1, 2016, with respect to violations occurring after November 2, 2015, the date of enactment of the BBA. Readers may refer to the Supplementary Information (also known as the preamble) of the Department's 2016 interim rule for additional background information regarding the statutory authority for adjustments of civil monetary penalty amounts to take account of inflation and the Department's past implementation of inflation adjustments.
The BBA also provides for agencies to adjust their civil penalties on January 15 of each year to account for inflation during the preceding year, rounded to the nearest dollar. Accordingly, on February 3, 2017 (82 FR 9131), the Department published a final rule to adjust for inflation the civil monetary penalties assessed or enforced by components of the Department after that date, with respect to violations occurring after November 2, 2015.
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Inflation Adjustments Made by This Rule
As required, the Department is publishing this final rule to adjust the civil penalties that were most recently adjusted as of February 3, 2017. Under the statutory formula, the adjustments made by this rule are based on the Bureau of Labor Statistics' Consumer Price Index for October 2017. The OMB Memorandum for the Heads of Executive Departments and Agencies M-18-03 (Dec. 15, 2017), https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf (last visited Jan. 1, 2018), instructs that the applicable inflation factor for this adjustment is 1.02041. Accordingly, this rule adjusts the civil penalty amounts in 28 CFR 85.5 by applying this inflation factor mechanically to each of the civil penalty amounts listed (rounded to the nearest dollar).
Example:
In 2016, the Program Fraud Civil Remedies Act penalty was increased to $10,781 in accordance with the adjustment requirements of the BBA.
For 2017, where the applicable inflation factor was 1.01636, the existing penalty of $10,781 was multiplied by 1.01636 and revised to $10,957 (rounded to the nearest dollar).
For this final rule in 2018, where the applicable inflation factor is 1.02041, the existing penalty of $10,957 is multiplied by 1.02041 and revised to $11,181 (rounded to the nearest dollar).
This rule adjusts for inflation civil monetary penalties within the jurisdiction of the Department of Justice for purposes of the Inflation Adjustment Act, as amended. Other agencies are responsible for the inflation adjustments of certain other civil monetary penalties that the Department's litigating components bring suit to collect. The reader should consult the regulations of those other agencies for inflation adjustments to those penalties.
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Effective Date of Adjusted Civil Penalty Amounts
Under this rule, the adjusted civil penalty amounts are applicable only to civil penalties assessed after January 29, 2018, with respect to violations occurring after November 2, 2015, the date of enactment of the BBA.
The penalty amounts set forth in the existing table in 28 CFR 85.5 are applicable to civil penalties assessed after August 1, 2016, and on or before the effective date of this rule, with respect to violations occurring after November 2, 2015. Civil penalties for violations occurring on or before November 2, 2015, and assessments made on or before August 1, 2016, will continue to be subject to the civil monetary penalty amounts set forth in the Department's regulations in 28 CFR parts 20, 22, 36, 68, 71, 76, and 85 as such regulations were in effect prior to August 1, 2016 (or as set forth by statute if the amount had not yet been adjusted by regulation prior to August 1, 2016).
Statutory and Regulatory Analyses
Administrative Procedure Act
The BBA provides that, for each annual adjustment made after the initial adjustments of civil penalties in 2016, the head of an agency shall adjust the civil monetary penalties each year notwithstanding 5 U.S.C. 553. Accordingly, this rule is being issued as a final rule without prior notice and public comment, and without a delayed effective date.
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Regulatory Flexibility Act
Only those entities that are determined to have violated Federal law and regulations would be affected by the increase in the civil penalty amounts made by this rule. A Regulatory Flexibility Act analysis is not required for this rule because publication of a notice of proposed rulemaking was not required. See 5 U.S.C. 603(a).
Executive Orders 12866 and 13563--Regulatory Review
This final rule has been drafted in accordance with Executive Order 12866, ``Regulatory Planning and Review,'' section 1(b), The Principles of Regulation, and in accordance with Executive Order 13563, ``Improving Regulation and Regulatory Review,'' section 1, General Principles of Regulation. Executive Orders 12866 and 13563 direct agencies, in certain circumstances, to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity).
The Department of Justice has determined that this rule is not a ``significant regulatory action'' under Executive Order 12866, ``Regulatory Planning and Review,'' section 3(f), and, accordingly, this rule has not been reviewed by the Office of Management and Budget. This final rule implements the BBA by making an across-the-board adjustment of the civil penalty amounts in 28 CFR 85.5 to account for inflation since the adoption of the Department's final rule published on February 3, 2017.
Executive Order 13132--Federalism
This rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment.
Executive Order 12988--Civil Justice Reform
This regulation meets the applicable standards set forth in sections 3(a) and 3(b)(2) of Executive Order 12988.
Unfunded Mandates Reform Act of 1995
This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995.
Congressional Review Act
This rule is not a major rule as defined by the Congressional Review Act, 5 U.S.C. 804. It will not result in an annual effect on the economy of $100 million or more; a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or 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.
List of Subjects in 28 CFR Part 85
Administrative practice and procedure, Penalties.
Accordingly, for the reasons set forth in the preamble, chapter I of Title 28 of the Code of Federal Regulations is amended as follows:
PART 85--CIVIL MONETARY PENALTIES INFLATION ADJUSTMENT
0
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The authority citation for part 85 continues to read as follows:
Authority: 5 U.S.C. 301, 28 U.S.C. 503; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321; Pub. L. 114-74, section 701, 28 U.S.C. 2461 note.
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Revise Sec. 85.5 to read as follows:
Sec. 85.5 Adjustments to penalties for violations occurring after November 2, 2015.
For civil penalties assessed after January 29, 2018, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are adjusted as set forth in the sixth column of the following table. For civil penalties assessed after February 3, 2017, and on or before January 29, 2018, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are those set forth in the fifth column of the following table. For civil penalties assessed after August 1, 2016, and on or before February 3, 2017, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are those set forth in the fourth column of the following table. All figures set forth in this table are maximum penalties, unless otherwise indicated.
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DOJ penalty DOJ penalty
U.S.C. citation Name/description CFR citation DOJ penalty assessed assessed after 2/3/ assessed after 1/29/
after 8/1/16 ($) 17 ($) 1 2018 ($) 2
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ATF
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18 U.S.C. 922(t)(5)............... Brady Law--Nat'l Instant ..................... 8,162................ 8,296............... 8,465.
Criminal Check System;
Transfer of firearm
without checking NICS.
18 U.S.C. 924(p).................. Child Safety Lock Act; ..................... 2,985................ 3,034............... 3,096.
Secure gun storage or
safety device, violation.
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Civil Division
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12 USC 1833a(b)(1)................ Financial Institutions 28 CFR 85.3(a)(6).... 1,893,610............ 1,924,589........... 1,963,870.
Reform, Recovery, and
Enforcement Act (FIRREA)
Violation.
12 U.S.C. 1833a(b)(2)............. FIRREA Violation 28 CFR 85.3(a)(7).... 1,893,610............ 1,924,589........... 1,963,870.
(continuing) (per day).
12 U.S.C. 1833a(b)(2)............. FIRREA Violation 28 CFR 85.3(a)(7).... 9,468,050............ 9,622,947........... 9,819,351.
(continuing).
22 U.S.C. 2399b(a)(3)(A).......... Foreign Assistance Act; 28 CFR 85.3(a)(8).... 5,500................ 5,590............... 5,704.
Fraudulent Claim for
Assistance (per act).
31 U.S.C. 3729(a)................. False Claims Act; 3 28 CFR 85.3(a)(9).... Min. 10,781, Max. Min. 10,957, Max. Min. 11,181, Max.
Violations. 21,563. 21,916. 22,363.
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31 U.S.C. 3802(a)(1).............. Program Fraud Civil 28 CFR 71.3(a)....... 10,781............... 10,957.............. 11,181.
Remedies Act; Violations
Involving False Claim
(per claim).
31 U.S.C. 3802(a)(2).............. Program Fraud Civil 28 CFR 71.3(f)....... 10,781............... 10,957.............. 11,181.
Remedies Act; Violation
Involving False Statement
(per statement).
40 U.S.C. 123(a)(1)(A)............ Federal Property and 28 CFR 85.3(a)(12)... 5,500................ 5,590............... 5,704.
Administrative Services
Act; Violation Involving
Surplus Government
Property (per act).
41 U.S.C. 8706(a)(1)(B)........... Anti-Kickback Act; 28 CFR 85.3(a)(13)... 21,563............... 21,916.............. 22,363.
Violation Involving
Kickbacks 4 (per
occurrence).
18 U.S.C. 2723(b)................. Driver's Privacy ..................... 7,954................ 8,084............... 8,249.
Protection Act of 1994;
Prohibition on Release
and Use of Certain
Personal Information from
State Motor Vehicle
Records--Substantial Non-
compliance (per day).
18 U.S.C. 216(b).................. Ethics Reform Act of 1989; 28 CFR 85.3(c)....... 94,681............... 96,230.............. 98,194.
Penalties for Conflict of
Interest Crimes 5 (per
violation).
41 U.S.C. 2105(b)(1).............. Office of Federal ..................... 98,935............... 100,554............. 102,606.
Procurement Policy Act; 6
Violation by an
individual (per
violation).
41 U.S.C. 2105(b)(2).............. Office of Federal ..................... 989,345.............. 1,005,531........... 1,026,054.
Procurement Policy Act; 6
Violation by an
organization (per
violation).
42 U.S.C. 5157(d)................. Disaster Relief Act of ..................... 12,500............... 12,705.............. 12,964.
1974; 7 Violation (per
violation).
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Civil Rights Division (excluding immigration-related penalties)
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18 U.S.C. 248(c)(2)(B)(i)......... Freedom of Access to 28 CFR 85.3(b)(1)(i). 15,909............... 16,169.............. 16,499.
Clinic Entrances Act of
1994 (``FACE Act'');
Nonviolent physical
obstruction, first
violation.
18 U.S.C. 248(c)(2)(B)(ii)........ FACE Act; Nonviolent 28 CFR 85.3(b)(1)(ii) 23,863............... 24,253.............. 24,748.
physical obstruction,
subsequent violation.
18 U.S.C. 248(c)(2)(B)(i)......... FACE Act; Violation other 28 CFR 85.3(b)(2)(i). 23,863............... 24,253.............. 24,748.
than a nonviolent
physical obstruction,
first violation.
18 U.S.C. 248(c)(2)(B)(ii)........ FACE Act; Violation other 28 CFR 85.3(b)(2)(ii) 39,772............... 40,423.............. 41,248.
than a nonviolent
physical obstruction,
subsequent violation.
42 U.S.C. 3614(d)(1)(C)(i)........ Fair Housing Act of 1968; 28 CFR 85.3(b)(3)(i). 98,935............... 100,554............. 102,606.
first violation.
42 U.S.C. 3614(d)(1)(C)(ii)....... Fair Housing Act of 1968; 28 CFR 85.3(b)(3)(ii) 197,869.............. 201,106............. 205,211.
subsequent violation.
42 U.S.C. 12188(b)(2)(C)(i)....... Americans With 28 CFR 89,078............... 90,535.............. 92,383.
Disabilities Act; Public 36.504(a)(3)(i).
accommodations for
individuals with
disabilities, first
violation.
42 U.S.C. 12188(b)(2)(C)(ii)...... Americans With 28 CFR 178,156.............. 181,071............. 184,767.
Disabilities Act; Public 36.504(a)(3)(ii).
accommodations for
individuals with
disabilities, subsequent
violation.
50 U.S.C. 4041(b)(3).............. Servicemembers Civil 28 CFR 85.3(b)(4)(i). 59,810............... 60,788.............. 62,029.
Relief Act of 2003; first
violation.
50 U.S.C. 4041(b)(3).............. Servicemembers Civil 28 CFR 85.3(b)(4)(ii) 119,620.............. 121,577............. 124,058.
Relief Act of 2003;
subsequent violation.
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Criminal Division
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18 U.S.C. 983(h)(1)............... Civil Asset Forfeiture ..................... Min. 342, Max. 6,834. Min. 348, Max. 6,946 Min. 355, Max.
Reform Act of 2000; 7,088.
Penalty for Frivolous
Assertion of Claim.
18 U.S.C. 1956(b)................. Money Laundering Control ..................... 21,563............... 21,916.............. 22,363.
Act of 1986; Violation 8.
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DEA
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21 U.S.C. 844a(a)................. Anti-Drug Abuse Act of 28 CFR 76.3(a)....... 19,787............... 20,111.............. 20,521.
1988; Possession of small
amounts of controlled
substances (per
violation).
21 U.S.C. 961(1).................. Controlled Substance 28 CFR 85.3(d)....... 68,750............... 69,875.............. 71,301.
Import Export Act; Drug
abuse, import or export.
21 U.S.C. 842(c)(1)(A)............ Controlled Substances Act ..................... 62,500............... 63,523.............. 64,820.
(``CSA''); Violations of
842(a)--other than (5),
(10) and (16)--Prohibited
acts re: controlled
substances (per
violation).
21 U.S.C. 842(c)(1)(B)............ CSA; Violations of ..................... 14,502............... 14,739.............. 15,040.
842(a)(5) and (10)--
Prohibited acts re:
controlled substances.
21 U.S.C. 842(c)(1)(C)............ CSA; Violation of 825(e) ..................... 500,855.............. 509,049............. 519,439.
by importer, exporter,
manufacturer, or
distributor--False
labeling of anabolic
steroids (per violation).
21 U.S.C. 842(c)(1)(D)............ CSA; Violation of 825(e) ..................... 1,002................ 1,018............... 1,039.
at the retail level--
False labeling of
anabolic steroids (per
violation).
21 U.S.C. 842(c)(2)(C)............ CSA; Violation of ..................... 375,613.............. 381,758............. 389,550.
842(a)(11) by a business--
Distribution of
laboratory supply with
reckless disregard 9.
21 U.S.C. 856(d).................. Illicit Drug Anti- ..................... 321,403.............. 326,661............. 333,328.
Proliferation Act of
2003; Maintaining drug-
involved premises 10.
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Immigration-Related Penalties
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8 U.S.C. 1324a(e)(4)(A)(i)........ Immigration Reform and 28 CFR 68.52(c)(1)(i) Min. 539, Max. 4,313. Min. 548, Max. 4,384 Min. 559, Max.
Control Act of 1986 4,473.
(``IRCA''); Unlawful
employment of aliens,
first order (per
unauthorized alien).
8 U.S.C. 1324a(e)(4)(A)(ii)....... IRCA; Unlawful employment 28 CFR Min. 4,313, Max. Min. 4,384, Max. Min. 4,473, Max.
of aliens, second order 68.52(c)(1)(ii). 10,781. 10,957. 11,181.
(per such alien).
8 U.S.C. 1324a(e)(4)(A)(iii)...... IRCA; Unlawful employment 28 CFR Min. 6,469, Max. Min. 6,575, Max. Min. 6,709, Max.
of aliens, subsequent 68.52(c)(1)(iii). 21,563. 21,916. 22,363.
order (per such alien).
8 U.S.C. 1324a(e)(5).............. IRCA; Paperwork violation 28 CFR 68.52(c)(5)... Min. 216, Max. 2,156. Min. 220, Max. 2,191 Min. 224, Max.
(per relevant individual). 2,236.
8 U.S.C. 1324a, (note)............ IRCA; Violation relating 28 CFR 68.52(c)(6)... Min. 751 Max.1,502... Min. 763, Max. 1,527 Min. 779, Max.
to participating 1,558.
employer's failure to
notify of final
nonconfirmation of
employee's employment
eligibility (per relevant
individual).
8 U.S.C. 1324a(g)(2).............. IRCA; Violation/ 28 CFR 68.52(c)(7)... 2,156................ 2,191............... 2,236.
prohibition of indemnity
bonds (per violation).
8 U.S.C. 1324b(g)(2)(B)(iv)(I).... IRCA; Unfair immigration- 28 CFR Min. 445, Max. 3,563. Min. 452, Max. 3,621 Min. 461, Max.
related employment 68.52(d)(1)(viii). 3,695.
practices, first order
(per individual
discriminated against).
8 U.S.C. 1324b(g)(2)(B)(iv)(II)... IRCA; Unfair immigration- 28 CFR Min. 3,563, Max. Min. 3,621, Max. Min. 3,695, Max.
related employment 68.52(d)(1)(ix). 8,908. 9,054. 9,239.
practices, second order
(per individual
discriminated against).
8 U.S.C. 1324b(g)(2)(B)(iv)(III).. IRCA; Unfair immigration- 28 CFR 68.52(d)(1)(x) Min. 5,345, Max. Min. 5,432, Max Min. 5,543,
related employment 17,816. 18,107. Max.18,477.
practices, subsequent
order (per individual
discriminated against).
8 U.S.C. 1324b(g)(2)(B)(iv)(IV)... IRCA; Unfair immigration- 28 CFR Min. 178, Max. 1,782. Min. 181, Max. 1,811 Min. 185, Max.
related employment 68.52(d)(1)(xii). 1,848.
practices, unfair
documentary practices
(per individual
discriminated against).
8 U.S.C. 1324c(d)(3)(A)........... IRCA; Document fraud, 28 CFR 68.52(e)(1)(i) Min. 445, Max. 3,563. Min. 452, Max. 3,621 Min. 461, Max.
first order--for 3,695.
violations described in
USC 1324c(a)(1)-(4) (per
document).
8 U.S.C. 1324c(d)(3)(B)........... IRCA; Document fraud, 28 CFR Min. 3,563, Max. Min. 3,621, Max. Min. 3,695, Max.
subsequent order--for 68.52(e)(1)(iii). 8,908. 9,054. 9,239.
violations described in
USC 1324c(a)(1)-(4) (per
document).
8 U.S.C. 1324c(d)(3)(A)........... IRCA; Document fraud, 28 CFR Min. 376, Max. 3,005. Min. 382, Max. 3,054 Min. 390, Max.3,116.
first order--for 68.52(e)(1)(ii).
violations described in
USC 1324c(a)(5)-(6) (per
document).
8 U.S.C. 1324c(d)(3)(B)........... IRCA; Document fraud, 28 CFR Min. 3,005, Max. Min. 3,054, Max. Min. 3,116, Max.
subsequent order--for 68.52(e)(1)(iv). 7,512. 7,635. 7,791.
violations described in
USC 1324c(a)(5)-(6) (per
document).
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FBI
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49 U.S.C. 30505(a)................ National Motor Vehicle ..................... 1,591................ 1,617............... 1,650.
Title Identification
System; Violation (per
violation).
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Office of Justice Programs
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34 U.S.C. 10231(d)................ Confidentiality of 28 CFR 20.25......... 27,500............... 27,950.............. 28,520.
information; State and
Local Criminal History
Record Information
Systems--Right to Privacy
Violation.
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1 The figures set forth in this column represent the penalty as last adjusted by Department of Justice regulation on February 3, 2017.
2 All figures set forth in this table are maximum penalties, unless otherwise indicated.
3 Section 3729(a)(1) of Title 31 provides that any person who violates this section is liable to the United States Government for a civil penalty of not
less than $5,000 and not more than $10,000, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990, plus 3 times the amount of
damages which the Government sustains because of the act of that person. 31 U.S.C. 3729(a)(1) (2015). Section 3729(a)(2) permits the court to reduce
the damages under certain circumstances to not less than 2 times the amount of damages which the Government sustains because of the act of that
person. Id. section 3729(a)(2). The adjustment made by this regulation is only applicable to the specific statutory penalty amounts stated in
subsection (a)(1), which is only one component of the civil penalty imposed under section 3729(a)(1).
4 Section 8706(a)(1) of Title 41 provides that the Federal Government in a civil action may recover from a person that knowingly engages in conduct
prohibited by section 8702 of Title 44 a civil penalty equal to twice the amount of each kickback involved in the violation and not more than $10,000
for each occurrence of prohibited conduct. 41 U.S.C. 8706(a)(1) (2015). The adjustment made by this regulation is only applicable to the specific
statutory penalty amount stated in subsection (a)(1)(B), which is only one component of the civil penalty imposed under section 8706.
5 Section 216(b) of Title 18 provides that the civil penalty should be no more than $50,000 for each violation or the amount of compensation which the
person received or offered for the prohibited conduct, whichever amount is greater. 18 U.S.C. 216(b) (2015). Therefore, the adjustment made by this
regulation is only applicable to the specific statutory penalty amount stated in subsection (b), which is only one aspect of the possible civil
penalty imposed under section 216(b).
6 Section 2105(b) of Title 41 provides that the Attorney General may bring a civil action in an appropriate district court of the United States against
a person that engages in conduct that violates section 2102, 2103, or 2104 of Title 41. 41 U.S.C. 2105(b) (2015). Section 2105(b) further provides
that on proof of that conduct by a preponderance of the evidence, an individual is liable to the Federal Government for a civil penalty of not more
than $50,000 for each violation plus twice the amount of compensation that the individual received or offered for the prohibited conduct, and an
organization is liable to the Federal Government for a civil penalty of not more than $500,000 for each violation plus twice the amount of
compensation that the organization received or offered for the prohibited conduct. Id. section 2105(b). The adjustments made by this regulation are
only applicable to the specific statutory penalty amounts stated in subsections (b)(1) and (b)(2), which are each only one component of the civil
penalties imposed under sections 2105(b)(1) and (b)(2).
7 The Attorney General has authority to bring a civil action when a person has violated or is about to violate a provision under this statute. 42 U.S.C.
5157(b) (2015). The Federal Emergency Management Agency has promulgated regulations regarding this statute and has adjusted the penalty in its
regulation. 44 CFR 206.14(d) (2015). The Department of Health and Human Services (HHS) has also promulgated a regulation regarding the penalty under
this statute. 42 CFR 38.8 (2015).
8 Section 1956(b)(1) of Title 18 provides that whoever conducts or attempts to conduct a transaction described in subsection (a)(1) or (a)(3), or
section 1957, or a transportation, transmission, or transfer described in subsection (a)(2), is liable to the United States for a civil penalty of not
more than the greater of the value of the property, funds, or monetary instruments involved in the transaction; or $10,000. 18 U.S.C. 1956(b)(1)
(2015). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b)(1)(B), which is
only one aspect of the possible civil penalty imposed under section 1956(b).
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9 Section 842(c)(2)(C) of Title 21 provides that in addition to the penalties set forth elsewhere in the subchapter or subchapter II of the chapter, any
business that violates paragraph (11) of subsection (a) of the section shall, with respect to the first such violation, be subject to a civil penalty
of not more than $250,000, but shall not be subject to criminal penalties under the section, and shall, for any succeeding violation, be subject to a
civil fine of not more than $250,000 or double the last previously imposed penalty, whichever is greater. 21 U.S.C. 842(c)(2)(C) (2015). The
adjustment made by this regulation regarding the penalty for a succeeding violation is only applicable to the specific statutory penalty amount stated
in subsection (c)(2)(C), which is only one aspect of the possible civil penalty for a succeeding violation imposed under section 842(c)(2)(C).
10 Section 856(d)(1) of Title 21 provides that any person who violates subsection (a) of the section shall be subject to a civil penalty of not more
than the greater of $250,000; or 2 times the gross receipts, either known or estimated, that were derived from each violation that is attributable to
the person. 21 U.S.C. 856(d)(1) (2015). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in
subsection (d)(1)(A), which is only one aspect of the possible civil penalty imposed under section 856(d)(1).
Dated: January 19, 2018.
Jefferson B. Sessions III,
Attorney General.
FR Doc. 2018-01464 Filed 1-26-18; 8:45 am
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