Notification of Inflation Adjustments for Civil Money Penalties

CourtThe Comptroller Of The Currency Office
Citation87 FR 1657
Record Number2022-00109
Publication Date12 January 2022
Federal Register, Volume 87 Issue 8 (Wednesday, January 12, 2022)
[Federal Register Volume 87, Number 8 (Wednesday, January 12, 2022)]
                [Rules and Regulations]
                [Pages 1657-1659]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2022-00109]
                ========================================================================
                Rules and Regulations
                 Federal Register
                ________________________________________________________________________
                This section of the FEDERAL REGISTER contains regulatory documents
                having general applicability and legal effect, most of which are keyed
                to and codified in the Code of Federal Regulations, which is published
                under 50 titles pursuant to 44 U.S.C. 1510.
                The Code of Federal Regulations is sold by the Superintendent of Documents.
                ========================================================================
                Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 /
                Rules and Regulations
                [[Page 1657]]
                DEPARTMENT OF THE TREASURY
                Office of the Comptroller of the Currency
                12 CFR Parts 19 and 109
                Notification of Inflation Adjustments for Civil Money Penalties
                AGENCY: Office of the Comptroller of the Currency, Treasury.
                ACTION: Notification of monetary penalties 2022.
                -----------------------------------------------------------------------
                SUMMARY: This document announces changes to the Office of the
                Comptroller of the Currency's (OCC) maximum civil money penalties as
                adjusted for inflation. The inflation adjustments are required to
                implement the Federal Civil Penalties Inflation Adjustment Act of 1990,
                as amended by the Federal Civil Penalties Inflation Adjustment Act
                Improvements Act of 2015.
                DATES: The adjusted maximum amount of civil money penalties in this
                document are applicable to penalties assessed on or after January 12,
                2022 for conduct occurring on or after November 2, 2015.
                FOR FURTHER INFORMATION CONTACT: Lee Walzer, Counsel, Chief Counsel's
                Office, (202) 649-5490, Office of the Comptroller of the Currency.
                SUPPLEMENTARY INFORMATION: This document announces changes to the
                maximum amount of each civil money penalty (CMP) within the OCC's
                jurisdiction to administer to account for inflation pursuant to the
                Federal Civil Penalties Inflation Adjustment Act of 1990 (the 1990
                Adjustment Act),\1\ as amended by the Federal Civil Penalties Inflation
                Adjustment Act Improvements Act of 2015 (the 2015 Adjustment Act).\2\
                Under the 1990 Adjustment Act, as amended, federal agencies must make
                annual adjustments to the maximum amount of each CMP they administer.
                The Office of Management and Budget (OMB) is required to issue guidance
                to federal agencies no later than December 15 of each year providing an
                inflation adjustment multiplier (i.e., the inflation adjustment factor
                agencies must use) applicable to CMPs assessed in the following year.
                The agencies are required to publish their CMPs, adjusted pursuant to
                the multiplier provided by the OMB, by January 15 of the applicable
                year.
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                 \1\ Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at
                28 U.S.C. 2461 note.
                 \2\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015,
                129 Stat. 599, codified at 28 U.S.C. 2461 note.
                ---------------------------------------------------------------------------
                 To the extent an agency codified a CMP amount in its regulations,
                the agency would need to update that amount by regulation. However, if
                an agency codified a formula for making the CMP adjustments, then
                subsequent adjustments can be made solely by notice.\3\ In 2018, the
                OCC published a final regulation that removed the CMP amounts from its
                regulations while updating the CMP amounts for inflation through the
                notice process.\4\
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                 \3\ See OMB Memorandum M-18-03, Implementation of the 2018
                Annual Adjustment Pursuant to the Federal Civil Penalties Inflation
                Adjustment Act Improvements Act of 2015, at 4, which permits
                agencies that have codified the formula to adjust CMPs for inflation
                to update the penalties through a notice rather than a regulation.
                 \4\ 83 FR 1517 (Jan. 12, 2018) (final rule); 83 FR 1657 (Jan.
                12, 2018) (2018 CMP Notice).
                ---------------------------------------------------------------------------
                 On December 15, 2021, the OMB issued guidance to affected agencies
                on implementing the required annual adjustment, which included the
                relevant inflation multiplier.\5\ The OCC has applied that multiplier
                to the maximum CMPs allowable in 2021 for national banks and Federal
                savings associations as listed in the 2021 CMP notice \6\ to calculate
                the maximum amount of CMPs that may be assessed by the OCC in 2022.\7\
                There were no new statutory CMPs administered by the OCC during 2021.
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                 \5\ The inflation adjustment multiplier for 2022 is 1.06222. See
                OMB Memorandum M-22-07, Implementation of Penalty Inflation
                Adjustments for 2022, Pursuant to the Federal Civil Penalties
                Inflation Adjustment Act Improvements Act of 2015 (Dec. 15, 2021).
                 \6\ See 85 FR 86795 (Dec. 31, 2020).
                 \7\ Penalties assessed for violations occurring prior to
                November 2, 2015, will be subject to the maximum amounts set forth
                in the OCC's regulations in effect prior to the enactment of the
                2015 Adjustment Act.
                ---------------------------------------------------------------------------
                 The following charts provide the inflation-adjusted CMPs for use
                beginning on January 12, 2022, pursuant to 12 CFR 19.240(b) and
                109.103(c)(2) for conduct occurring on or after November 2, 2015:
                 Penalties Applicable to National Banks
                ------------------------------------------------------------------------
                 Maximum
                 Description and tier penalty amount
                 U.S. code citation (if applicable) (in dollars)
                 \1\
                ------------------------------------------------------------------------
                12 U.S.C. 93(b)................. Violation of Various
                 Provisions of the
                 National Bank Act:
                 Tier 1............. 11,011
                 Tier 2............. 55,052
                 Tier 3............. \2\ 2,202,123
                12 U.S.C. 164................... Violation of Reporting
                 Requirements:
                 Tier 1............. 4,404
                 Tier 2............. 44,043
                 Tier 3............. \2\ 2,202,123
                12 U.S.C. 481................... Refusal of Affiliate 11,011
                 to Cooperate in
                 Examination.
                12 U.S.C. 504................... Violation of Various
                 Provisions of the
                 Federal Reserve Act:
                 Tier 1............. 11,011
                 Tier 2............. 55,052
                 Tier 3............. \2\ 2,202,123
                [[Page 1658]]
                
                12 U.S.C. 1817(j)(16)........... Violation of Change in
                 Bank Control Act:
                 Tier 1............. 11,011
                 Tier 2............. 55,052
                 Tier 3............. \2\ 2,202,123
                12 U.S.C. 1818(i)(2) \3\........ Violation of Law,
                 Unsafe or Unsound
                 Practice, or Breach
                 of Fiduciary Duty:
                 Tier 1............. 11,011
                 Tier 2............. 55,052
                 Tier 3............. \2\ 2,202,123
                12 U.S.C. 1820(k)(6)(A)(ii)..... Violation of Post-
                 Employment
                 Restrictions:
                 Per violation...... 362,217
                12 U.S.C. 1832(c)............... Violation of
                 Withdrawals by
                 Negotiable or
                 Transferable
                 Instrument for
                 Transfers to Third
                 Parties:
                 Per violation...... 3,198
                12 U.S.C. 1884.................. Violation of the Bank 320
                 Protection Act.
                12 U.S.C. 1972(2)(F)............ Violation of Anti-
                 Tying Provisions
                 regarding
                 Correspondent
                 Accounts, Unsafe or
                 Unsound Practices, or
                 Breach of Fiduciary
                 Duty:
                 Tier 1............. 11,011
                 Tier 2............. 55,052
                 Tier 3............. \2\ 2,202,123
                12 U.S.C. 3110(a)............... Violation of Various 50,326
                 Provisions of the
                 International Banking
                 Act (Federal Branches
                 and Agencies).
                12 U.S.C. 3110(c)............... Violation of Reporting
                 Requirements of the
                 International Banking
                 Act (Federal Branches
                 and Agencies):
                 Tier 1............. 4,027
                 Tier 2............. 40,259
                 Tier 3............. \2\ 2,013,008
                12 U.S.C. 3909(d)(1)............ Violation of 2,739
                 International Lending
                 Supervision Act.
                15 U.S.C. 78u-2(b).............. Violation of Various
                 Provisions of the
                 Securities Act, the
                 Securities Exchange
                 Act, the Investment
                 Company Act, or the
                 Investment Advisers
                 Act:
                 Tier 1 (natural 10,360
                 person)--Per
                 violation.
                 Tier 1 (other 103,591
                 person)--Per
                 violation.
                 Tier 2 (natural 103,591
                 person)--Per
                 violation.
                 Tier 2 (other 517,955
                 person)--Per
                 violation.
                 Tier 3 (natural 207,183
                 person)--Per
                 violation.
                 Tier 3 (other 1,035,909
                 person)--Per
                 violation.
                15 U.S.C. 1639e(k).............. Violation of Appraisal
                 Independence
                 Requirements:
                 First violation.... 12,647
                 Subsequent 25,293
                 violations.
                42 U.S.C. 4012a(f)(5)........... Flood Insurance:
                 Per violation...... 2,392
                ------------------------------------------------------------------------
                \1\ The maximum penalty amount is per day, unless otherwise indicated.
                \2\ The maximum penalty amount for a national bank is the lesser of this
                 amount or 1 percent of total assets.
                \3\ These amounts also apply to CMPs in statutes that cross-reference 12
                 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15
                 U.S.C. 1607, 1693o, 1681s, 1691c, and 1692l.
                 Penalties Applicable to Federal Savings Associations
                ------------------------------------------------------------------------
                 Maximum
                 penalty amount
                 U.S. code citation CMP description (in dollars)
                 \8\
                ------------------------------------------------------------------------
                12 U.S.C. 1464(v)............... Reports of Condition:
                 1st Tier........... 4,404
                 2nd Tier........... 44,043
                 3rd Tier........... \2\ 2,202,123
                12 U.S.C. 1467(d)............... Refusal of Affiliate 11,011
                 to Cooperate in
                 Examination.
                12 U.S.C. 1467a(r).............. Late/Inaccurate
                 Reports:
                 1st Tier........... 4,404
                 2nd Tier........... 44,043
                 3rd Tier........... \2\ 2,202,123
                12 U.S.C. 1817(j)(16)........... Violation of Change in
                 Bank Control Act:
                 1st Tier........... 11,011
                 2nd Tier........... 55,052
                 3rd Tier........... \2\ 2,202,123
                12 U.S.C. 1818(i)(2) \3\........ Violation of Law,
                 Unsafe or Unsound
                 Practice, or Breach
                 of Fiduciary Duty:
                 1st Tier........... 11,011
                 2nd Tier........... 55,052
                 3rd Tier........... \2\ 2,202,123
                [[Page 1659]]
                
                12 U.S.C. 1820(k)(6)(A)(ii)..... Violation of Post-
                 Employment
                 Restrictions:
                 Per violation...... 362,217
                12 U.S.C. 1832(c)............... Violation of
                 Withdrawals by
                 Negotiable or
                 Transferable
                 Instruments for
                 Transfers to Third
                 Parties:
                 Per violation...... 2,907
                12 U.S.C. 1884.................. Violation of the Bank 320
                 Protection Act.
                12 U.S.C. 1972(2)(F)............ Violation of
                 Provisions regarding
                 Correspondent
                 Accounts, Unsafe or
                 Unsound Practices, or
                 Breach of Fiduciary
                 Duty:
                 Tier 1............. 11,011
                 Tier 2............. 55,052
                 Tier 3............. \2\ 2,202,123
                15 U.S.C. 78u-2(b).............. Violations of Various
                 Provisions of the
                 Securities Act, the
                 Securities Exchange
                 Act, the Investment
                 Company Act, or the
                 Investment Advisers
                 Act:
                 1st Tier (natural 10,360
                 person)--Per
                 violation.
                 1st Tier (other 103,591
                 person)--Per
                 violation.
                 2nd Tier (natural 103,591
                 person)--Per
                 violation.
                 2nd Tier (other 517,955
                 person)--Per
                 violation.
                 3rd Tier (natural 207,183
                 person)--Per
                 violation.
                 3rd Tier (other 1,035,909
                 person)--Per
                 violation.
                15 U.S.C. 1639e(k).............. Violation of Appraisal
                 Independence
                 Requirements:
                 First violation.... 12,647
                 Subsequent 25,293
                 violations.
                42 U.S.C. 4012a(f)(5)........... Flood Insurance:
                 Per violation...... 2,392
                ------------------------------------------------------------------------
                \8\ The maximum penalty amount is per day, unless otherwise indicated.
                \2\ The maximum penalty amount for a federal savings association is the
                 lesser of this amount or 1 percent of total assets.
                \3\ These amounts also apply to statutes that cross-reference 12 U.S.C.
                 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 U.S.C.
                 1607, 1681s, 1691c, and 1692l.
                Benjamin W. McDonough,
                Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller
                of the Currency.
                [FR Doc. 2022-00109 Filed 1-11-22; 8:45 am]
                BILLING CODE 4810-33-P
                

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