[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43021-43028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15376]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 19 and 109

[Docket ID OCC-2016-0008]
RIN 1557-AE04


Rules of Practice and Procedure; Rules of Practice and Procedure 
in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Interim final rule and request for comment.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
amending its rules of practice and procedure for national banks and its 
rules of practice and procedure in adjudicatory proceedings for Federal 
savings associations to publish the maximum amount, adjusted for 
inflation, of each civil money penalty within its jurisdiction to 
administer. These actions are required under the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

DATES: This rule is effective on August 1, 2016. Comments must be 
submitted by August 30, 2016.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments 
through the Federal eRulemaking Portal or email, if possible. Please 
use the title ``Rules of Practice and Procedure; Rules of Practice and 
Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation 
Adjustments'' to facilitate the organization and distribution of the 
comments. You may submit comments by any of the following methods:
     Federal eRulemaking Portal--``Regulations.gov'': Go to 
www.regulations.gov. Enter ``Docket ID OCC-2016-0008'' in the Search 
Box and click ``Search.'' Click on ``Comment Now'' to submit public 
comments.
     Click on the ``Help'' tab on the Regulations.gov home page 
to get information on using Regulations.gov, including instructions for 
submitting public comments.
     Email: [email protected].
     Mail: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, 400 7th Street SW., Suite 
3E-218, Mail Stop 9W-11, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW., Suite 3E-218, 
Mail Stop 9W-11, Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``Docket ID OCC-2016-0008'' in your comment. In general, OCC will enter 
all comments received into the docket and publish them on the 
Regulations.gov Web site without change, including any business or 
personal information that you provide such as name and address 
information, email addresses, or phone numbers. Comments received, 
including attachments and other supporting

[[Page 43022]]

materials, are part of the public record and subject to public 
disclosure. Do not include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    You may review comments and other related materials that pertain to 
this rulemaking action by any of the following methods:
     Viewing Comments Electronically: Go to 
www.regulations.gov. Enter ``Docket ID OCC-2016-0008'' in the Search 
box and click ``Search.'' Click on ``Open Docket Folder'' on the right 
side of the screen and then ``Comments.'' Comments can be filtered by 
clicking on ``View All'' and then using the filtering tools on the left 
side of the screen.
     Click on the ``Help'' tab on the Regulations.gov home page 
to get information on using Regulations.gov. Supporting materials may 
be viewed by clicking on ``Open Docket Folder'' and then clicking on 
``Supporting Documents.'' The docket may be viewed after the close of 
the comment period in the same manner as during the comment period.
     Viewing Comments Personally: You may personally inspect 
and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 
20219. For security reasons, the OCC requires that visitors make an 
appointment to inspect comments. You may do so by calling (202) 649-
6700 or, for persons who are deaf or hard of hearing, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid 
government-issued photo identification and submit to security screening 
in order to inspect and photocopy comments.

FOR FURTHER INFORMATION CONTACT: Jean Campbell, Counsel, Legislative 
and Regulatory Activities Division, (202) 649-5490, or, for persons who 
are deaf or hard of hearing, TTY, (202) 649-5597, or Alexander 
Abramovich, Attorney, Enforcement and Compliance Division, (202) 649-
6200, Office of the Comptroller of the Currency, 400 7th Street SW., 
Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

I. Background

    On November 2, 2015, Congress enacted the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act),\1\ 
which amended the Federal Civil Penalties Inflation Adjustment Act of 
1990 (the Inflation Adjustment Act).\2\ The Inflation Adjustment Act 
required the OCC and other Federal agencies with civil money penalty 
(CMP) authority to publish by regulation the inflation-adjusted maximum 
assessment for each CMP authorized by a law that the agency has 
jurisdiction to administer.\3\ Key features of the Inflation Adjustment 
Act included requiring such agencies to make inflation adjustments at 
least once every four years following any initial adjustment, capping 
the initial inflation adjustment increase at 10 percent, and imposing 
rounding rules that limited increases based on the amount of the 
penalty.
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    \1\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015, 
129 Stat. 599, codified at 28 U.S.C. 2461 note.
    \2\ See Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, 
codified at 28 U.S.C. 2461 note.
    \3\ The 2015 Act defines a ``civil monetary penalty'' to mean 
``any penalty, fine, or other sanction that is for a specific 
monetary amount as provided by Federal law; or has a maximum amount 
provided for by Federal law; and is assessed or enforced by an 
agency pursuant to Federal law; and is assessed or enforced pursuant 
to an administrative proceeding or a civil action in the Federal 
courts.''
    28 U.S.C. 2461 note, section 3(2). Thus, a penalty based on 
another measure, such as a percentage of total assets, need not be 
adjusted.
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    The purpose of the 2015 Act is to: (i) Establish a mechanism to 
regularly adjust CMPs for inflation; (ii) maintain the deterrent effect 
of CMPs and promote compliance with the law; and (iii) improve the 
collection of CMPs by the Federal government.\4\ Key provisions of the 
2015 Act include simplifying the process for calculating the inflation 
increase, eliminating the complex rounding rules, and requiring Federal 
agencies to adjust penalties on an annual basis.
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    \4\ See 28 U.S.C. 2461 note, section 2(b).
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    The 2015 Act requires agencies to increase the level of each 
maximum CMP, or the range of minimum and maximum CMPs, with an initial 
``catch-up'' adjustment through an interim final rule published in the 
Federal Register no later than July 1, 2016, with an effective date no 
later than August 1, 2016.\5\ Under the 2015 Act, agencies must 
calculate initial catch-up adjustments based on the percentage increase 
in the October 2015 Consumer Price Index for all Urban Consumers (CPI-
U) \6\ from the October CPI-U of the year the CMP was established or 
last adjusted by law. However, for the catch-up adjustment, the amount 
of the initial increase may not exceed 150 percent of the CMP in effect 
on the date the 2015 Act was enacted (i.e., November 2, 2015).
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    \5\ The 2015 Act, however, provides a mechanism for an agency, 
with the concurrence of the Office of Management and Budget (OMB), 
to reduce a catch-up adjustment if the agency demonstrates the 
required increase of the penalty or penalty range would have a 
negative economic impact or that social costs would outweigh the 
benefits.
    \6\ This index is published by the Department of Labor.
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    The 2015 Act requires agencies to publish subsequent annual 
adjustments in the Federal Register no later than January 15 of each 
year, beginning on January 15, 2017. The 2015 Act also requires 
agencies to calculate subsequent annual inflation adjustments based on 
the percentage increase in the CPI-U for the month of October preceding 
the date of the adjustment from the prior year's October CPI-U and to 
round all adjustments to the nearest dollar.
    The 2015 Act also requires OMB to issue guidance to Federal 
agencies on implementing the required inflation adjustments. The OMB 
guidance (OMB Guidance), issued February 24, 2016, provides the 
multiplier (i.e., the inflation adjustment factor agencies must use to 
adjust their penalties), step-by-step instructions on how to calculate 
the catch-up adjustments, and other relevant information.\7\
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    \7\ Office of Management and Budget Memorandum, M-16-06 
(February 24, 2016), available at: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
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    The OCC last evaluated and adjusted the maximum amount of CMPs 
applicable to national banks and Federal savings associations in 2012. 
An interim final rule was published in the Federal Register on November 
6, 2012,\8\ and became effective on December 6, 2012. The OCC published 
a technical amendment to this rule in the Federal Register on December 
28, 2012,\9\ that became effective on December 28, 2012.
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    \8\ 77 FR 66529.
    \9\ 77 FR 76354.
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II. Description of the Interim Final Rule

A. Initial Inflation Adjustment

    This interim final rule adjusts for inflation the maximum 
assessment for each CMP that the OCC has jurisdiction to impose in 
accordance with the 2015 Act and the OMB Guidance. The OCC is 
incorporating these adjustments into the charts that are set forth at 
12 CFR 19.240(a) with respect to national banks (national bank chart) 
and 12 CFR 109.103(c) with respect to Federal savings associations 
(Federal savings association chart). Each chart identifies the statutes 
that authorize the OCC to assess CMPs, describes the different tiers of 
penalties provided in each statute (as applicable), and sets out the 
inflation-adjusted maximum penalty that the OCC may impose pursuant to 
each statutory provision. The OCC calculated the amounts in the charts 
in accordance with the OMB Guidance, as follows.

[[Page 43023]]

    In order to calculate the catch-up adjustment, the OMB Guidance 
instructs agencies to identify, for each penalty, the year and 
corresponding amount(s) for which the maximum penalty level or range of 
minimum and maximum penalties was established (i.e., as originally 
enacted by Congress), or last adjusted (i.e., by Congress in statute, 
or by the agency through regulation), whichever is later, other than 
pursuant to the Inflation Adjustment Act. Thus, this step of the 
calculation excludes prior inflation adjustments under the Inflation 
Adjustment Act.\10\
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    \10\ See OMB Guidance, at 3.
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    The OMB Guidance then directs agencies to modify that penalty level 
or range based on the CPI-U for the month of October 2015, not 
seasonally adjusted. OMB calculated the multiplier that agencies must 
apply in order to adjust the penalty level or range of penalty levels, 
based on the year the penalty was established or last adjusted by 
statute or regulation, and provided these multipliers for the years 
1914 through 2015.\11\ Agencies must apply the multiplier and round all 
penalty levels to the nearest dollar. However, because the 2015 Act 
caps the amount of the initial catch-up adjustment at 150 percent, the 
OMB Guidance states that each adjusted penalty cannot exceed 250 
percent of the penalty level in effect on November 2, 2015.\12\ The 
2015 Act states that agencies are required to apply the new penalty 
levels to CMPs that are assessed after the effective date of the rule. 
The OMB Guidance clarifies that inflation adjustments calculated and 
assessed pursuant to the 2015 Act adjust penalties prospectively and do 
not retrospectively change penalties previously assessed or enforced 
that the agency is actively collecting or has collected.\13\
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    \11\ For penalties established or last adjusted prior to 1914, 
the OMB Guidance states that agencies should use the multiplier for 
1914. See id., Table A, at 6.
    \12\ See 28 U.S.C. 2461 note, section 5(b)(2)(C); see also OMB 
Guidance, at 3.
    \13\ See OMB Guidance, at 4.
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    The worksheets below show how the OCC calculated the new penalty 
levels for national banks and Federal savings associations. Only two 
penalties, those provided in 12 U.S.C. 1832(c) and 1884, were capped at 
250 percent of the amount of the penalty on November 2, 2015.
    The OCC did not exercise the discretion it is provided under the 
2015 Act to seek a reduced catch-up adjustment determination from OMB. 
Such a request would have required the OCC to demonstrate that the 
penalty would have a negative economic impact, or that the social costs 
of the adjustment would outweigh the benefits.\14\ As the penalties 
reflected in the national bank chart and Federal savings association 
chart are, for the most part, maximum penalties, the OCC may impose 
lesser penalties, if warranted. Accordingly, the OCC concluded that a 
reduced catch-up adjustment determination was not necessary.
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    \14\ See 28 U.S.C. 2461 note, section 4(c) and OMB Guidance, at 
3.
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B. Penalties Added to the National Bank Chart and Federal Savings 
Association Chart

    This interim final rule adjusts the following additional penalties 
that are being incorporated into the national bank chart and Federal 
savings association chart. First, both charts include a new CMP, 
provided in 15 U.S.C. 1639e(k), created by the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Dodd-Frank Act).\15\ The new CMP 
makes it unlawful for a creditor who extends credit, or provides any 
services for a consumer credit transaction secured by the consumer's 
principal dwelling, to engage in any act or practice that violates the 
regulation implementing the appraisal independence requirements in 
section 1472 of the Dodd-Frank Act. Pursuant to the Dodd-Frank Act, the 
maximum daily penalty for the first violation is $10,000 and the 
maximum daily penalty for subsequent violations is $20,000. The 
adjusted maximum daily penalties will be $10,875 and $21,749, 
respectively.
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    \15\ See Dodd-Frank Act, Public Law 111-203, Title XIV, section 
1472, July 21, 2010, 124 Stat. 2187, codified at 15 U.S.C. 1639e(k).
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    The OCC also is adjusting the penalty provided in 12 U.S.C. 481, an 
existing CMP that previously was not included in the chart. Twelve 
U.S.C. 481 authorizes the OCC to assess on a national bank a maximum 
daily penalty of no more than $5,000 if any affiliate of a national 
bank refuses to permit an examiner to make an examination of such 
affiliate or refuses to provide any information required in the course 
of such an examination. The adjusted maximum daily penalty will be 
$9,468.
    In addition, the OCC is adjusting the penalties provided in 12 
U.S.C. 1832(c), 12 U.S.C. 1972(2)(F), and 15 U.S.C. 78u-2(b), three 
CMPs that are in the national bank chart, but were not previously 
included in the chart applicable to Federal savings associations. 
Twelve U.S.C. 1832(c) makes it unlawful for a depository institution to 
violate the restrictions on withdrawals by negotiable or transferable 
instruments for transfers to third parties. The penalty when first 
established was $1,000 per violation. The adjusted penalty will be 
$2,750 per violation. Twelve U.S.C 1972(2)(F) makes it unlawful for a 
savings association to violate anti-tying restrictions regarding 
correspondent accounts, unsafe or unsound practices, or breach of 
fiduciary duty. When first established, the maximum daily penalty was: 
$5,000 for a tier 1 violation; $25,000 for a tier 2 violation; 
$1,000,000 for a tier 3 violation by a person other than a bank; and 
the lesser of $1,000,000 or 1 percent of total assets for a tier 3 
violation by a bank. The adjusted maximum daily penalties will be: 
$9,468 for a tier 1 violation; $47,340 for a tier 2 violation; 
$1,893,610 for a tier 3 violation by a person other than a bank; and 
the lesser of $1,893,610 or 1 percent of total assets for a tier 3 
violation by a bank. Fifteen U.S.C. 78u-2(b) provides penalties for 
violations of various provisions of the Securities Act,\16\ the 
Securities Exchange Act,\17\ the Investment Company Act,\18\ and the 
Investment Advisers Act,\19\ as applicable. When first established, the 
maximum penalty per violation was: $5,000 for a tier 1 violation by a 
natural person; $50,000 for a tier 1 violation by any other person; 
$50,000 for a tier 2 violation by a natural person; $250,000 for a tier 
2 violation by any other person; $100,000 for a tier 3 violation by a 
natural person; and $500,000 for a tier 3 violation by any other 
person. The adjusted maximum penalties will be: $8,907 for tier 1 
(natural person); $89,078 for tier 1 (other person); $89,078 for tier 2 
(natural person); $445,390 for tier 2 (other person); $178,156 for tier 
3 (natural person); and $890,780 for tier 3 (other person).
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    \16\ Securities Act of 1933, Title I of Public Law 73-22, 
enacted May 27, 1933, 48 Stat. 74, codified at 15 U.S.C. 77a, et 
seq.
    \17\ Securities Exchange Act of 1934, Public Law 73-291, enacted 
June 6, 1934, 48 Stat. 881, codified at 15 U.S.C. 78a, et seq.
    \18\ Investment Company Act of 1940, Public Law 76-768, enacted 
Aug. 22, 1940, 54 Stat. 789, codified at 15 U.S.C. 80a-1, et seq.
    \19\ Investment Advisers Act of 1940, Public Law 76-768, enacted 
Aug. 22, 1940, 54 Stat. 847, codified at 15 U.S.C. 80b-1, et seq.
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C. Other Technical Changes to the National Bank Chart and Federal 
Savings Association Chart

    The OCC is making several minor technical edits to the national 
bank chart and Federal savings association chart. The OCC is amending 
the charts by adding a footnote to each chart, where appropriate, to 
clarify that for certain penalties the applicable statute provides that 
the penalty will be the lesser of a dollar adjusted penalty

[[Page 43024]]

amount or 1 percent of the bank's total assets. The text of the new 
Federal savings association chart no longer includes reference to 12 
U.S.C. 3349(b). This penalty is an example of penalties that do not 
themselves provide the amount of the penalty but rather cross-reference 
12 U.S.C. 1818. Instead, the OCC is adding a footnote to the national 
bank chart (footnote 3) and the Federal savings association chart 
(footnote 3), where appropriate, explaining that statutes cross-
referencing 12 U.S.C. 1818 are adjusted automatically when the penalty 
in section 1818 is adjusted for inflation.
    The interim final rule also deletes Sec. Sec.  19.240(c) and 
109.103(d), which provided an effective date of July 6, 2012, for the 
amount of the penalties for violations of 42 U.S.C. 4012a(f)(5), as all 
the penalty amounts on the revised national bank chart and Federal 
savings association chart are now effective on the same date.
    Finally, consistent with the 2015 Act, revised Sec. Sec.  19.240(b) 
and 109.103(c) state that the penalties in the charts at Sec. Sec.  
19.240(a) and 109.103(c) apply only to penalties assessed on or after 
the effective date of this interim final rule, August 1, 2016.

                                                             2015 Worksheet--National Banks
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                                                                                                                                             Adjusted
                                                                                                                             Amount of        maximum
                                                              Maximum          Year         Amount when                      increase     penalty (after
        U.S. Code citation          Tier (if applicable)    penalty on      established   established or     Inflation      (rounded to    rounding and
                                                           Nov. 2, 2015       or last      last adjusted      factor          nearest       comparison
                                                           (in dollars)      adjusted                                         dollar)      calculation)
                                                                                                                                           (in dollars)
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12 U.S.C. 93(b)...................  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 164.....................  Tier 1..............           3,200            1989           2,000         1.89361           3,787           3,787
                                    Tier 2..............          32,000            1989          20,000         1.89361          37,872          37,872
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 481.....................  Per day.............           5,000            1989           5,000         1.89361           9,468           9,468
12 U.S.C. 504.....................  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1817(j)(16).............  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1818(i)(2)..............  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............      1, 425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1820(k)(6)(A)(ii).......  ....................         275,000            2004         250,000         1.24588         311,470         311,470
12 U.S.C. 1832(c).................  ....................           1,100            1973           1,000         5.21575           5,216      \20\ 2,750
12 U.S.C. 1884....................  ....................             110            1968             100         6.73762             674        \20\ 275
12 U.S.C. 1972(2)(F)..............  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 3110(a).................  ....................          37,500            1991          25,000         1.73099          43,275          43,275
12 U.S.C. 3110(c).................  Tier 1..............           3,200            1991           2,000         1.73099           3,462           3,462
                                    Tier 2..............          32,000            1991          20,000         1.73099          34,620          34,620
                                    Tier 3..............       1,425,000            1991       1,000,000         1.73099       1,730,990       1,730,990
12 U.S.C. 3909(d)(1)..............  ....................           1,100            1983           1,000         2.35483           2,355           2,355
15 U.S.C. 78u-2(b)................  Tier 1 (natural                7,500            1990           5,000         1.78156           8,908           8,908
                                     person).
                                    Tier 1 (other                 70,000            1990          50,000         1.78156          89,078          89,078
                                     person).
                                    Tier 2 (natural               70,000            1990          50,000         1.78156          89,078          89,078
                                     person).
                                    Tier 2 (other                350,000            1990         250,000         1.78156         445,390         445,390
                                     person).
                                    Tier 3 (natural              140,000            1990         100,000         1.78156         178,156         178,156
                                     person).
                                    Tier 3 (other                700,000            1990         500,000         1.78156         890,780         890,780
                                     person).
15 U.S.C. 1639e(k)................  First violation.....          10,000            2010          10,000         1.08745          10,875          10,875
                                    Subsequent violation          20,000            2010          20,000         1.08745          21,749          21,749
42 U.S.C. 4012a(f)(5).............  Per violation.......           2,000            2012           2,000         1.02819           2,056           2,056
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[[Page 43025]]

     
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    \20\ Because the 2015 Act caps the amount of the initial 
inflation adjustment (catch-up adjustment) at 150 percent, the 
catch-up adjustment cannot exceed 250 percent of the penalty 
level(s) in effect on the date the 2015 Act was enacted (i.e., 
November 2, 2015).

                                                      2015 Worksheet--Federal Savings Associations
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                                                                                                                                             Adjusted
                                                                                                                             Amount of        maximum
                                                              Maximum          Year         Amount when                      increase     penalty (after
        U.S. Code citation          Tier (if applicable)    penalty on    established or  established or     Inflation      (rounded to    rounding and
                                                           Nov. 2, 2015    last adjusted   last adjusted      factor          nearest       comparison
                                                           (in dollars)                                                       dollar)      calculation)
                                                                                                                                           (in dollars)
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 1464(v).................  Tier 1..............           3,200            1989           2,000         1.89361           3,787           3,787
                                    Tier 2..............          32,500            1989          20,000         1.89361          37,872          37,872
                                    Tier 3..............       1,425,500            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1467(d).................  ....................           7,500            1989           5,000         1.89361           9,468           9,468
12 U.S.C. 1467a(r)................  Tier 1..............           3,200            1989           2,000         1.89361           3,787           3,787
                                    Tier 2..............          32,500            1989          20,000         1.89361          37,872          37,872
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1817(j)(16).............  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,425,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1818(i)(2)..............  Tier 1..............           7,500            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          37,500            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,375,000            1989       1,000,000         1.89361       1,893,610       1,893,610
12 U.S.C. 1820(k)(6)(A)(ii).......  ....................         275,000            2004         250,000         1.24588         311,470         311,470
12 U.S.C. 1832(c).................  ....................           1,000            1973           1,000         5.21575           5,216      \21\ 2,500
12 U.S.C. 1884....................  ....................             110            1968             100         6.73762             674        \21\ 275
12 U.S.C. 1972(2)(F)..............  Tier 1..............           5,000            1989           5,000         1.89361           9,468           9,468
                                    Tier 2..............          25,000            1989          25,000         1.89361          47,340          47,340
                                    Tier 3..............       1,000,000            1989       1,000,000         1.89361       1,893,610       1,893,610
15 U.S.C. 78u-2(b)................  Tier 1 (natural                5,000            1990           5,000         1.78156           8,908           8,908
                                     person).
                                    Tier 1 (other                 50,000            1990          50,000         1.78156          89,078          89,078
                                     person).
                                    Tier 2 (natural               50,000            1990          50,000         1.78156          89,078          89,078
                                     person).
                                    Tier 2 (other                250,000            1990         250,000         1.78156         445,390         445,390
                                     person).
                                    Tier 3 (natural              100,000            1990         100,000         1.78156         178,156         178,156
                                     person).
                                    Tier 3 (other                500,000            1990         500,000         1.78156         890,780         890,780
                                     person).
15 U.S.C. 1639e(k)................  First violation.....          10,000            2010          10,000         1.08745          10,875          10,875
                                    Subsequent                    20,000            2010          20,000         1.08745          21,749          21,749
                                     violations.
42 U.S.C. 4012a(f)(5).............  Per violation.......           2,000            2012           2,000         1.02819           2,056           2,056
--------------------------------------------------------------------------------------------------------------------------------------------------------

III. Request for Comments
---------------------------------------------------------------------------

    \21\ Because the 2015 Act caps the amount of the initial 
inflation adjustment (catch-up adjustment) at 150 percent, the 
catch-up adjustment cannot exceed 250 percent of the penalty 
level(s) in effect on the date the 2015 Act was enacted (i.e., 
November 2, 2015).
---------------------------------------------------------------------------

    The 2015 Act requires the OCC to adjust the CMPs that it has 
jurisdiction to administer through an interim final rule. The 2015 Act 
also dictates the method by which the amount of the initial catch-up 
adjustment for each CMP must be calculated. As noted in the OMB 
Guidance, agencies are not required to complete a notice-and-comment 
process prior to publication of this interim final rule in the Federal 
Register.\22\ However, the OCC invites comments on all aspects of this 
interim final rule. Commenters are specifically encouraged to identify 
any technical issues raised by the rule, including identifying any CMPs 
that may have been unintentionally omitted from this rulemaking.
---------------------------------------------------------------------------

    \22\ See OMB Guidance, at 3.
---------------------------------------------------------------------------

IV. Regulatory Analysis

A. Delayed Effective Date

    Section 302 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 \23\ (RCDRIA) requires that the effective date 
of new regulations and amendments to regulations that impose additional 
reporting, disclosures, or other new requirements on insured depository 
institutions shall be the first day of a calendar quarter that begins 
on or after the date the regulations are published in final form. 12 
U.S.C. 4802(b)(1). The RCDRIA does not apply to this interim final rule 
because the rule merely increases the amount of CMPs that already exist 
and does not impose any additional reporting, disclosures, or other new 
requirements.
---------------------------------------------------------------------------

    \23\ 12 U.S.C. 4802.
---------------------------------------------------------------------------

    The Administrative Procedure Act generally requires an agency to 
publish a rule 30 days prior to its effective date.\24\ This interim 
final rule satisfies

[[Page 43026]]

that requirement. It also satisfies the requirement in the 2015 Act to 
publish the initial interim final rule no later than July 1, 2016, with 
an effective date no later than August 1, 2016.
---------------------------------------------------------------------------

    \24\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act applies only to rules for which an 
agency publishes a general notice of proposed rulemaking pursuant to 5 
U.S.C. 553(b).\25\ Because the 2015 Act requires agencies' catch-up 
adjustments to be made through an interim final rule, the OCC is not 
publishing a general notice of proposed rulemaking. Thus, the 
Regulatory Flexibility Act does not apply to this interim final rule.
---------------------------------------------------------------------------

    \25\ 5 U.S.C. 601(2).
---------------------------------------------------------------------------

C. Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 \26\ 
requires that an agency prepare a budgetary impact statement before 
promulgating any rule likely to result in a Federal mandate that may 
result in the expenditure by State, local, and tribal governments, in 
the aggregate, or by the private sector of $100 million or more, as 
adjusted for inflation, in any one year. The Unfunded Mandates Reform 
Act only applies when an agency issues a general notice of proposed 
rulemaking. Because the OCC is not publishing a notice of proposed 
rulemaking, this interim final rule is not subject to section 202 of 
the Unfunded Mandates Reform Act.
---------------------------------------------------------------------------

    \26\ 2 U.S.C. 1532.
---------------------------------------------------------------------------

List of Subjects

12 CFR Part 19

    Administrative practice and procedure, Crime, Equal access to 
justice, Investigations, National banks, Penalties, Securities.

12 CFR Part 109

    Administrative practice and procedure, Federal savings 
associations, Penalties.

Authority and Issuance

    For the reasons set out in the preamble, parts 19 and 109 of 
chapter I of title 12 of the Code of Federal Regulations are amended as 
follows:

PART 19--RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 19 is revised to read as follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 93a, 164, 
481, 504, 1817, 1818, 1820, 1831m, 1831o, 1832, 1884, 1972, 3102, 
3108(a), 3110, 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o-4(c), 
78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, 78w, and 1639e; 28 U.S.C. 2461 
note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a.


0
2. Section 19.240 is revised to read as follows:


Sec.  19.240  Inflation adjustments.

    (a) The maximum amount of each civil money penalty within the OCC's 
jurisdiction is set forth as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Maximum
                                                                                                  penalty amount
         U.S. Code citation                      Description and tier (if applicable)              (in dollars)
                                                                                                        \1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 93(b).....................  Violation of Various Provisions of the National Bank Act:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 164.......................  Violation of Reporting Requirements:
                                      Tier 1....................................................           3,787
                                      Tier 2....................................................          37,872
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 481.......................  Refusal of Affiliate to Cooperate in Examination (national           9,468
                                       bank).
12 U.S.C. 504.......................  Violation of Various Provisions of the Federal Reserve
                                       Act:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 1817(j)(16)...............  Violation of Change in Bank Control Act:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 1818(i)(2) \3\............  Violation of Law, Unsafe or Unsound Practice, or Breach of
                                       Fiduciary Duty:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 1820(k)(6)(A)(ii).........  Violation of Post-Employment Restrictions:
                                      Per violation.............................................         311,470
12 U.S.C. 1832(c)...................  Violation of Withdrawals by Negotiable or Transferable
                                       Instrument for Transfers to Third Parties:
                                      Per violation.............................................           2,750
12 U.S.C. 1884......................  Violation of the Bank Protection Act......................             275
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....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 3110(a)...................  Violation of Various Provisions of the International                43,275
                                       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....................................................           3,462
                                      Tier 2....................................................          34,620
                                      Tier 3....................................................   \2\ 1,730,990
12 U.S.C. 3909(d)(1)................  Violation of International Lending Supervision Act........           2,355

[[Page 43027]]

 
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 person)--Per violation....................           8,908
                                      Tier 1 (other person)--Per violation......................          89,078
                                      Tier 2 (natural person)--Per violation....................          89,078
                                      Tier 2 (other person)--Per violation......................         445,390
                                      Tier 3 (natural person)--Per violation....................         178,156
                                      Tier 3 (other person)--Per violation......................         890,780
15 U.S.C. 1639e(k)..................  Violation of Appraisal Independence Requirements:
                                      First violation...........................................          10,875
                                      Subsequent violations.....................................          21,749
42 U.S.C. 4012a(f)(5)...............  Flood Insurance:
                                      Per violation.............................................           2,056
----------------------------------------------------------------------------------------------------------------

    (b) The maximum amount of each civil money penalty set forth in the 
chart in paragraph (a) of this section applies to penalties assessed on 
or after August 1, 2016.
---------------------------------------------------------------------------

    \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, 1639e(k), 1693o, 1681s, 1691c, and 
1692l.
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PART 109--RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY 
PROCEEDINGS

0
3. The authority citation for part 109 is revised to read as follows:

    Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 1464, 1467, 1467a, 
1468, 1817, 1818, 1820(k), 1829(e), 1832, 1884, 1972, 3349, 4717, 
5412(b)(2)(B); 15 U.S.C. 78(l), 78o-5, 78u-2, 1639e; 28 U.S.C. 2461 
note; 31 U.S.C. 5321; and 42 U.S.C. 4012a.


0
4. Section 109.103 is amended by revising paragraph (c) to read as 
follows and by removing paragraph (d):


Sec.  109.103  Civil money penalties.

* * * * *
    (c) Maximum amount of civil money penalties. The maximum amount of 
each civil money penalty in the chart below applies to penalties 
assessed on or after August 1, 2016:

----------------------------------------------------------------------------------------------------------------
                                                                                                      Maximum
                                                                                                  penalty amount
         U.S. Code citation                                 CMP description                        (in dollars)
                                                                                                        \1\
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 1464(v)...................  Reports of Condition:
                                      1st Tier..................................................           3,787
                                      2nd Tier..................................................          37,872
                                      3rd Tier..................................................   \2\ 1,893,610
12 U.S.C. 1467(d)...................  Refusal of Affiliate to Cooperate in Examination..........           9,468
12 U.S.C. 1467a(r)..................  Late/Inaccurate Reports:
                                      1st Tier..................................................           3,787
                                      2nd Tier..................................................          37,872
                                      3rd Tier..................................................   \2\ 1,893,610
12 U.S.C. 1817(j)(16)...............  Violation of Change in Bank Control Act:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 1818(i)(2) \3\............  Violation of Law, Unsafe or Unsound Practice, or Breach of
                                       Fiduciary Duty:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
12 U.S.C. 1820(k)(6)(A)(ii).........  Violation of Post-Employment Restrictions:
                                      Per violation.............................................         311,470
12 U.S.C. 1832(c)...................  Violation of Withdrawals by Negotiable or Transferable
                                       Instruments for Transfers to Third Parties:
                                      Per violation.............................................           2,500
12 U.S.C. 1884......................  Violation of the Bank Protection Act......................             275
12 U.S.C. 1972(2)(F)................  Violation of Provisions regarding Correspondent Accounts,
                                       Unsafe or Unsound Practices, or Breach of Fiduciary Duty:
                                      Tier 1....................................................           9,468
                                      Tier 2....................................................          47,340
                                      Tier 3....................................................   \2\ 1,893,610
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 person)--Per violation..................           8,908
                                      1st Tier (other person)--Per violation....................          89,078

[[Page 43028]]

 
                                      2nd Tier (natural person)--Per violation..................          89,078
                                      2nd Tier (other person)--Per violation....................         445,390
                                      3rd Tier (natural person)--Per violation..................         178,156
                                      3rd Tier (other person)--Per violation....................         890,780
15 U.S.C. 1639e(k)..................  Violation of Appraisal Independence Requirements:
                                      First violation...........................................          10,875
                                      Subsequent violations.....................................          21,749
42 U.S.C. 4012a(f)(5)...............  Flood Insurance:
                                      Per violation.............................................           2,056
----------------------------------------------------------------------------------------------------------------

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

    \1\ The maximum penalty amount is per day, unless otherwise 
indicated.
    \2\ The maximum penalty amount for a 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, 1639e(k), 1693o, 1681s, 1691c, and 1692l.

    Dated: June 23, 2016.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2016-15376 Filed 6-30-16; 8:45 am]
 BILLING CODE 4810-33-P