[Federal Register Volume 82, Number 27 (Friday, February 10, 2017)]
[Rules and Regulations]
[Pages 10434-10440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01637]



[[Page 10433]]

Vol. 82

Friday,

No. 27

February 10, 2017

Part II





 Department of the Treasury





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31 CFR Part 50





 Office of Foreign Assets Control

31 CFR Parts 501, 535, 536, et al.





 Financial Crimes Enforcement Network

31 CFR Part 1010





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 Inflation Adjustment of Civil Monetary Penalties; Final Rule

  Federal Register / Vol. 82 , No. 27 / Friday, February 10, 2017 / 
Rules and Regulations  

[[Page 10434]]


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DEPARTMENT OF THE TREASURY

31 CFR Part 50

Office of Foreign Assets Control

31 CFR Parts 501, 535, 536, 538, 539, 541, 542, 543, 544, 546, 547, 
548, 549, 560, 561, 566, 576, 588, 592, 594, 595, 597, and 598

Financial Crimes Enforcement Network

31 CFR Part 1010


Inflation Adjustment of Civil Monetary Penalties

AGENCY: Departmental Offices, Financial Crimes Enforcement Network, and 
Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury (``Department'' or 
``Treasury'') publishes this final rule to adjust its civil monetary 
penalties (``CMPs'') for inflation as mandated by the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 
(collectively referred to herein as ``the Act''). This rule adjusts 
CMPs within the jurisdiction of certain components of the Department to 
the maximum amount required by the Act.

DATES: Effective February 10, 2017.

FOR FURTHER INFORMATION CONTACT: For information regarding the 
Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior 
Insurance Regulatory Policy Analyst, Federal Insurance Office, Room 
1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW., 
Washington, DC 20220, at (202) 622-2922 (not a toll-free number), Kevin 
Meehan, Senior Insurance Regulatory Policy Analyst, Federal Insurance 
Office, at (202) 622-7009 (not a toll-free number), or Lindsey Baldwin, 
Senior Policy Analyst, Federal Insurance Office, at (202) 622-3220 (not 
a toll free number). Persons who have difficulty hearing or speaking 
may access these numbers via TTY by calling the toll-free Federal Relay 
Service at (800) 877-8339.
    For information regarding Financial Crimes Enforcement Network's 
CMPs, contact the FinCEN Resource Center at (800) 767-2825 or email 
[email protected].
    For information regarding the Office of Foreign Assets Control's 
CMPs, contact the Assistant Director for Enforcement, tel.: 202-622-
2430; Assistant Director for Licensing, tel.: 202-622-2480, Assistant 
Director for Regulatory Affairs, tel.: 202-622-4855, Assistant Director 
for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the 
Department of the Treasury's Office of the Chief Counsel (Foreign 
Assets Control), Office of the General Counsel, tel.: 202-622-2410.

SUPPLEMENTARY INFORMATION: 

I. Background

    In order to improve the effectiveness of CMPs and to maintain their 
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act 
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires 
Federal agencies to adjust each CMP provided by law within the 
jurisdiction of the agency. The 2015 Act requires agencies to adjust 
the level of CMPs with an initial ``catch-up'' adjustment through an 
interim final rulemaking and to make subsequent annual adjustments for 
inflation, notwithstanding 5 U.S.C. 553. The Department's initial 
catch-up adjustment interim final rules were published on June 30, 2016 
(FinCEN) (81 FR 42503), July 1, 2016 (OFAC) (81 FR 43070), and December 
7, 2016 (Departmental Offices) (81 FR 88600). The 2015 Act provides 
that any increase in a CMP shall apply to CMPs that are assessed after 
the date the increase takes effect, regardless of whether the 
underlying violation predated such increase.\1\
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    \1\ However, the increased CMPs apply only with respect to 
underlying violations occurring after the date of enactment of the 
2015 Act, i.e., after November 2, 2015.
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II. Method of Calculation

    The method of calculating CMP adjustments applied in this final 
rule is required by the 2015 Act. Under the 2015 Act and the Office of 
Management and Budget guidance required by the 2015 Act, annual 
inflation adjustments subsequent to the initial catch-up adjustment are 
to be based on the percent change between the Consumer Price Index for 
all Urban Consumers (``CPI-U'') for the October preceding the date of 
the adjustment and the prior year's October CPI-U. As set forth in 
Office of Management and Budget Memorandum M-17-11, the adjustment 
multiplier for 2017 is 1.01636. In order to complete the 2017 annual 
adjustment, each CMP (as revised by the catch-up adjustment) is 
multiplied by the 2017 adjustment multiplier. Under the 2015 Act, any 
increase in CMP must be rounded to the nearest multiple of $1.

Procedural Matters

1. Administrative Procedure Act
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Section 701(b)) requires agencies, effective 2017, to make 
annual adjustments for inflation to CMPs notwithstanding 5 U.S.C. 553. 
Additionally, the methodology used, effective 2017, for adjusting CMPs 
for inflation is provided by statute, with no discretion provided to 
agencies regarding the substance of the adjustments for inflation to 
CMPs. The Department is charged only with performing ministerial 
computations to determine the dollar amount of adjustments for 
inflation to CMPs. Accordingly, prior public notice and an opportunity 
for public comment are not required for this rule.
2. Regulatory Flexibility Act
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.
3. Executive Order 12866
    This rule is not a significant regulatory action as defined in 
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no new or 
revised recordkeeping or reporting requirements.

List of Subjects

31 CFR Part 50

    Insurance, Terrorism.

31 CFR Parts 501, 535, 536, 538, 539, 541, 542, 543, 544, 546, 547, 
548, 549, 560, 561, 566, 576, 588, 592, 594, 595, 597, and 598

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.

31 CFR Part 1010

    Authority delegations (Government agencies), Banks and banking, 
Currency, Investigations, Law enforcement, Reporting and recordkeeping 
requirements.

Authority and Issuance

    For the reasons set forth in the preamble, part 50, chapter V, and 
part

[[Page 10435]]

1010 of title 31 of the Code of Federal Regulations are amended as 
follows:

PART 50--TERRORISM RISK INSURANCE PROGRAM

0
1. The authority citation for part 50 continues to read as follows:

    Authority:  5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-
297, 116 Stat. 2322, as amended by Pub. L. 109-144, 119 Stat. 2660, 
Pub. L. 110-160, 121 Stat. 1839 and Pub. L. 114-1, 129 Stat. 3 (15 
U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601, Title VII (28 
U.S.C. 2461 note).


0
2. Revise Sec.  50.83(a) to read as follows:


Sec.  50.83   Adjustment of civil monetary penalty amount.

    (a) Inflation adjustment. Any penalty under the Act and these 
regulations may not exceed the greater of $1,333,312 and, in the case 
of any failure to pay, charge, collect or remit amounts in accordance 
with the Act or these regulations such amount in dispute.
* * * * *

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
3. The authority citation for part 501 continues to read as follows:

    Authority:  8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a), 
6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C. 
1701-1706; 50 U.S.C. App. 1-44.

Subpart D--Trading With the Enemy Act (TWEA) Penalties

0
4. Revise the note to paragraph (a)(1) and paragraph (a)(3) of Sec.  
501.701 to read as follows:


Sec.  501.701   Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of January 15, 2017, TWEA provides 
for a maximum civil penalty not to exceed $85,236.

* * * * *
    (3) The Secretary of the Treasury may impose a civil penalty of not 
more than $85,236 per violation on any person who violates any license, 
order, or regulation issued under TWEA.

    Note to paragraph (a)(3): The current civil penalty cap may be 
adjusted for inflation pursuant to the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 
U.S.C. 2461 note).

* * * * *

0
5. Revise paragraphs (i) and (ii) and the note to paragraph (a) of 
section V.B.2.a of appendix A to part 501 to read as follows:

Appendix A to Part 501--Economic Sanctions Enforcement Guidelines

* * * * *

V. Civil Penalties

* * * * *
    B. * * *
    2. * * *
    a. * * *
    i. In a non-egregious case, if the apparent violation is 
disclosed through a voluntary self-disclosure by the Subject Person, 
the base amount of the proposed civil penalty in the Pre-Penalty 
Notice shall be one-half of the transaction value, capped at a 
maximum base amount of $144,619 per violation, except where the 
statutory maximum penalty applicable to the apparent violation is 
less than $289,238, in which case the base amount of the proposed 
civil penalty in the Pre-Penalty Notice shall be capped at one-half 
the statutory maximum penalty applicable to the apparent violation.
    ii. In a non-egregious case, if the apparent violation comes to 
OFAC's attention by means other than a voluntary self-disclosure, 
the base amount of the proposed civil penalty in the Pre-Penalty 
Notice shall be the ``applicable schedule amount,'' as defined 
above. For apparent violations where the statutory maximum penalty 
applicable to the apparent violation is $289,238 or greater, the 
maximum base amount shall be capped at $289,238. For apparent 
violations where the statutory maximum penalty applicable to the 
apparent violation is less than $289,238, the maximum base amount 
shall be capped at the statutory maximum penalty amount applicable 
to the apparent violation.
* * * * *

    Note to paragraph (a): As of January 15, 2017, the applicable 
statutory maximum civil penalty per violation for each statute 
enforced by OFAC is as follows: International Emergency Economic 
Powers Act (IEEPA)--greater of $289,238 or twice the amount of the 
underlying transaction; Trading with the Enemy Act (TWEA)--$85,236; 
Foreign Narcotics Kingpin Designation Act (FNKDA)--$1,437,153; 
Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA)--
greater of $76,351 or twice the amount of which a financial 
institution was required to retain possession or control; and Clean 
Diamond Trade Act (CDTA)--$13,066. The civil penalty amounts 
authorized under these statutes are subject to adjustment pursuant 
to the Federal Civil Penalties Inflation Adjustment Act of 1990 
(Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

    The following matrix represents the base amount of the proposed 
civil penalty for each category of violation:

[[Page 10436]]

[GRAPHIC] [TIFF OMITTED] TR10FE17.002

* * * * *

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

0
6. The authority citation for part 535 continues to read as follows:

    Authority:  3 U.S.C. 301; 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12170, 44 FR 
65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR, 
1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p. 
253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279, 
46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3 
CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp., 
p. 112; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O. 
12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 
14111, 3 CFR, 1981 Comp., p. 139.

Subpart G--Penalties

0
7. Revise the note to paragraph (a)(1) of Sec.  535.701 to read as 
follows:


Sec.  535.701   Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$289,238 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

0
8. The authority citation for part 536 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011; E.O. 12978, 60 FR 54579, 3 CFR, 1995 
Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.

Subpart G--Penalties

0
9. Revise the note to paragraph (a)(1) of Sec.  536.701 to read as 
follows:


Sec.  536.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$289,238 or an amount that is twice the amount of the transaction that 
is the basis of the violation with respect to which the penalty is 
imposed.
* * * * *

PART 538--SUDANESE SANCTIONS REGULATIONS

0
10. The authority citation for part 538 continues to read as follows:

    Authority:  3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 
890 (28 U.S.C. 2461 note); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120 
Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71 
FR 61369, 3 CFR, 2006 Comp., p. 244.

Subpart G--Penalties

0
11. Revise the note to paragraph (a)(1) of Sec.  538.701 to read as 
follows:


Sec.  538.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$289,238 or an amount that is twice the amount of the transaction that 
is the basis of the violation with respect to which the penalty is 
imposed.
* * * * *

[[Page 10437]]

PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS

0
12. The authority citation for part 539 continues to read as follows:

    Authority:  3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 
890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 
40803, 3 CFR, 1998 Comp., p. 200.

Subpart G--Penalties

0
13. Revise the note to paragraph (a)(1) of Sec.  539.701 to read as 
follows:


Sec.  539.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$289,238 or an amount that is twice the amount of the transaction that 
is the basis of the violation with respect to which the penalty is 
imposed.
* * * * *

PART 541--ZIMBABWE SANCTIONS REGULATIONS

0
14. The authority citation for part 541 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13288, 68 
FR 11457, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 FR 71201, 3 CFR, 
2005 Comp., p. 206; E.O. 13469, 73 FR 43841, 3 CFR, 2008 Comp., p. 
1025.

Subpart G--Penalties

0
15. Revise the note to paragraph (a)(1) of Sec.  541.701 to read as 
follows:


Sec.  541.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 542--SYRIAN SANCTIONS REGULATIONS

0
16. The authority citation for part 542 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 
U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 
Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 
U.S.C. 1701 note); E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 
168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp., p. 218; E.O. 13460, 
73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O. 13572, 76 FR 24787, 3 CFR 
2011 Comp., p. 236; E.O. 13573, 76 FR 29143, 3 CFR 2011 Comp., p. 
241; E.O. 13582, 76 FR 52209, 3 CFR 2011 Comp., p. 264; E.O. 13606, 
77 FR 24571, 3 CFR 2012 Comp., p. 243.

Subpart G--Penalties

0
17. Revise the note to paragraph (a)(1) of Sec.  542.701 to read as 
follows:


Sec.  542.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 543--COTE D'IVOIRE SANCTIONS REGULATIONS

0
18. The authority citation for part 543 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13396, 71 FR 7389, 3 CFR, 2006 Comp., p. 209.

Subpart G--Penalties

0
19. Revise the note to paragraph (a)(1) of Sec.  543.701 to read as 
follows:


Sec.  543.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS 
REGULATIONS

0
20. The authority citation for part 544 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Public Law 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 
1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 
200; E.O. 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. 170.

Subpart G--Penalties

0
21. Revise the note to paragraph (a)(1) of Sec.  544.701 to read as 
follows:


Sec.  544.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 546--DARFUR SANCTIONS REGULATIONS

0
22. The authority citation for part 546 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13400, 71 
FR 25483, 3 CFR, 2006 Comp., p. 220.

Subpart G--Penalties

0
23. Revise the note to paragraph (a)(1) of Sec.  546.701 to read as 
follows:


Sec.  546.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 547--DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS

0
24. The authority citation for part 547 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13413, 71 FR 64105, 3 CFR, 2006 Comp., p. 247.

Subpart G--Penalties

0
25. Revise the note to paragraph (a)(1) of Sec.  547.701 to read as 
follows:

[[Page 10438]]

Sec.  547.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 548--BELARUS SANCTIONS REGULATIONS

0
26. The authority citation for part 548 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13405, 71 
FR 35485; 3 CFR, 2007 Comp., p. 231.

Subpart G--Penalties

0
27. Revise the note to paragraph (a)(1) of Sec.  548.701 to read as 
follows:


Sec.  548.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 549--LEBANON SANCTIONS REGULATIONS

0
28. The authority citation for part 549 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13441, 72 
FR 43499, 3 CFR, 2008 Comp., p. 232.

Subpart G--Penalties

0
29. Revise the note to paragraph (a)(1) of Sec.  549.701 to read as 
follows:


Sec.  549.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

0
30. The authority citation for part 560 continues to read as follows:

    Authority:  3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 
note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 
111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 
Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 
U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 
256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 
60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 
CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., 
p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., p. 314.

Subpart G--Penalties

0
31. Revise the note to paragraph (a)(1) of Sec.  560.701 to read as 
follows:


Sec.  560.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS

0
32. The authority citation for part 561 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-
195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 
1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 
8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 
13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR 
6659, February 8, 2012; E.O. 13622, 77 FR 45897, August 2, 2012; 
E.O. 13628, 77 FR 62139, October 12, 2012.

Subpart G--Penalties

0
33. Revise the note to paragraph (a) of Sec.  561.701 to read as 
follows:


Sec.  561.701   Penalties.

    (a) * * *
    Note to paragraph (a): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 566--HIZBALLAH FINANCIAL SANCTIONS REGULATIONS

0
34. The authority citation for part 566 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-
102.

Subpart G--Penalties

0
35. Revise the note to paragraph (a) of Sec.  566.701 to read as 
follows:


Sec.  566.701   Penalties.

    (a) * * *
    Note to paragraph (a): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 576--IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS

0
36. The authority citation for part 576 continues to read as follows:

    Authority:  3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 110-96, 121 Stat. 1011; E.O. 
13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. 13315, 68 FR 
52315, 3 CFR, 2003 Comp., p. 252; E.O. 13350, 69 FR 46055, 3 CFR, 
2004 Comp., p. 196; E.O. 13364, 69 FR 70177, 3 CFR, 2004 Comp., p. 
236; E.O. 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 224.

Subpart G--Penalties

0
37. Revise the note to paragraph (a)(1) of Sec.  576.701 to read as 
follows:


Sec.  576.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

[[Page 10439]]

PART 588--WESTERN BALKANS STABILIZATION REGULATIONS

0
38. The authority citation for part 588 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13219, 66 
FR 34777, 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR, 
2004 Comp. p. 229.

Subpart G--Penalties

0
39. Revise the note to paragraph (a)(1) of Sec.  588.701 to read as 
follows:


Sec.  588.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of IEEPA is the greater of $289,238 
or an amount that is twice the amount of the transaction that is the 
basis of the violation with respect to which the penalty is imposed.
* * * * *

PART 592--ROUGH DIAMONDS CONTROL REGULATIONS

0
40. The authority citation for part 592 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); Pub. L. 108-19, 117 
Stat. 631 (19 U.S.C. 3901-3913); E.O. 13312, 68 FR 45151 3 CFR, 2003 
Comp., p. 246.

Subpart F--Penalties

0
41. Revise the note to paragraph (a)(1) of Sec.  592.601 to read as 
follows:


Sec.  592.601   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is $13,066.
* * * * *

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
42. The authority citation for part 594 continues to read as follows:

    Authority:  3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13224, 66 FR 
49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 
2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 
161; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

Subpart G--Penalties

0
43. Revise the note to paragraph (a)(1) of Sec.  594.701 to read as 
follows:


Sec.  594.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$289,238 or an amount that is twice the amount of the transaction that 
is the basis of the violation with respect to which the penalty is 
imposed.
* * * * *

PART 595--TERRORISM SANCTIONS REGULATIONS

0
44. The authority citation for part 595 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011; E.O. 12947, 60 FR 5079, 3 CFR, 1995 
Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; 
E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

Subpart G--Penalties

0
45. Revise the note to paragraph (a)(1) of Sec.  595.701 to read as 
follows:


Sec.  595.701   Penalties.

    (a) * * *
    (1) * * *
    Note to paragraph (a)(1): As of January 15, 2017, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$289,238 or an amount that is twice the amount of the transaction that 
is the basis of the violation with respect to which the penalty is 
imposed.
* * * * *

PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS

0
46. The authority citation for part 597 continues to read as follows:

    Authority:  31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 
U.S.C. 1189, 18 U.S.C. 2339B).

Subpart G--Penalties

0
47. Revise the note to paragraph (b) of Sec.  597.701 to read as 
follows:


Sec.  597.701   Penalties.

* * * * *
    (b) * * *
    Note to paragraph (b): As of January 15, 2017, the applicable 
maximum civil penalty per violation is $76,351 or twice the amount of 
which a financial institution was required to retain possession or 
control.
* * * * *

PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS

0
48. The authority citation for part 598 continues to read as follows:

    Authority:  3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b); 
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).

Subpart G--Penalties

0
49. Revise the note to paragraph (a)(3) of Sec.  598.701 to read as 
follows:


Sec.  598.701   Penalties.

    (a) * * *
    (3) * * *
    Note to paragraph (a)(3): As of January 15, 2017, the maximum civil 
penalty is $1,437,153 per violation.
* * * * *

PART 1010--GENERAL PROVISIONS

0
50. The authority citation for part 1010 continues to read as follows:

    Authority:  12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 
and 5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701. Pub. L. 114-74, 129 Stat. 599.

0
51. Amend Sec.  1010.821 by revising Table 1 of paragraph (b) to read 
as follows:


Sec.  1010.821   Penalty adjustment and table.

* * * * *
    (b) * * *

[[Page 10440]]



                                                  Table 1 of Sec.   1010.821--Penalty Adjustment Table
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              New maximum  penalty
                                                                                                              amounts  or range of  New maximum  penalty
                                                                                                                   minimum and      amounts  or range of
                                                                                               Penalties  as     maximum penalty         minimum and
                  U.S. Code citation                     Civil monetary penalty description    last  amended       amounts for         maximum penalty
                                                                                                by  statute    penalties assessed        amounts for
                                                                                                               after 8/1/2016  but   penalties assessed
                                                                                                                before  1/16/2017      after 1/15/2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 1829b(j)....................................  Relating to Recordkeeping Violations         $10,000               $19,787               $20,111
                                                         For Funds Transfers.
12 U.S.C. 1955........................................  Willful or Grossly Negligent                  10,000                19,787                20,111
                                                         Recordkeeping Violations.
31 U.S.C. 5318(k)(3)(C)...............................  Failure to Terminate Correspondent            10,000                13,384                13,603
                                                         Relationship with Foreign Bank.
31 U.S.C. 5321(a)(1)..................................  General Civil Penalty Provision for           25,000                53,907                54,789
                                                         Willful Violations of Bank Secrecy        -$100,000             -$215,628             -$219,156
                                                         Act Requirements.
31 U.S.C. 5321(a)(5)(B)(i)............................  Foreign Financial Agency                      10,000                12,459                12,663
                                                         Transaction--Non-Willful Violation
                                                         of Transaction.
31 U.S.C. 5321(a)(5)(C)...............................  Foreign Financial Agency                     100,000               124,588               126,626
                                                         Transaction--Willful Violation of
                                                         Transaction.
31 U.S.C. 5321(a)(6)(A)...............................  Negligent Violation by Financial                 500                 1,078                 1,096
                                                         Institution or Non-Financial Trade
                                                         or Business.
31 U.S.C. 5321(a)(6)(B)...............................  Pattern of Negligent Activity by              50,000                83,864                85,236
                                                         Financial Institution or Non-
                                                         Financial Trade or Business.
31 U.S.C. 5321(a)(7)..................................  Violation of Certain Due Diligence         1,000,000             1,338,420             1,360,317
                                                         Requirements, Prohibition on
                                                         Correspondent Accounts for Shell
                                                         Banks, and Special Measures.
31 U.S.C. 5330(e).....................................  Civil Penalty for Failure to                   5,000                 7,954                 8,084
                                                         Register as Money Transmitting
                                                         Business.
--------------------------------------------------------------------------------------------------------------------------------------------------------


David R. Pearl,
Executive Secretary.
[FR Doc. 2017-01637 Filed 2-9-17; 8:45 am]
 BILLING CODE 4810-25-P