[Federal Register Volume 85, Number 251 (Thursday, December 31, 2020)]
[Rules and Regulations]
[Pages 86795-86797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28942]


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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 2021.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
providing notice of its 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 1, 
2021, 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 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.
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    To the extent an agency has codified a CMP amount in its 
regulations, the agency would need to update that amount by regulation. 
However, if an agency has codified the formula for making the CMP 
adjustments, then subsequent adjustments can be made solely by 
notice.\3\ In 2018, the OCC published a final regulation to remove the 
CMP amounts from its regulations, while updating those amounts for 
inflation through the notification 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 notification rather than a 
regulation.
    \4\ 83 FR 1517 (Jan. 12, 2018) (final rule); 83 FR 1657 (Jan. 
12, 2018) (2018 CMP Notice).
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    On December 23, 2020, the OMB issued guidance to affected agencies 
on implementing the required annual adjustment, which included the 
relevant inflation multiplier.\5\ The OCC has

[[Page 86796]]

applied that multiplier to the maximum CMPs allowable in 2020 for 
national banks and Federal savings associations as listed in the 2020 
CMP notification \6\ to calculate the maximum amount of CMPs that may 
be assessed by the OCC in 2021.\7\ There were no new statutory CMPs 
administered by the OCC during 2020.
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    \5\ The inflation adjustment multiplier for 2021 is 1.01182 . 
See OMB Memorandum M-21-10, Implementation of Penalty Inflation 
Adjustments for 2021, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Dec. 23, 2020).
    \6\ See 84 FR 71735 (Dec. 30, 2019).
    \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.
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    The following charts provide the inflation-adjusted CMPs for use 
beginning on January 1, 2021, 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..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 164..................  Violation of Reporting
                                  Requirements:
                                    Tier 1..............           4,146
                                    Tier 2..............          41,463
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 481..................  Refusal of Affiliate to          10,366
                                  Cooperate in
                                  Examination.
12 U.S.C. 504..................  Violation of Various
                                  Provisions of the
                                  Federal Reserve Act:
                                    Tier 1..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 1817(j)(16)..........  Violation of Change in
                                  Bank Control Act:
                                    Tier 1..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 1818(i)(2) \3\.......  Violation of Law,
                                  Unsafe or Unsound
                                  Practice, or Breach of
                                  Fiduciary Duty:
                                    Tier 1..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 1820(k)(6)(A)(ii)....  Violation of Post-
                                  Employment
                                  Restrictions:
                                    Per violation.......         341,000
12 U.S.C. 1832(c)..............  Violation of
                                  Withdrawals by
                                  Negotiable or
                                  Transferable
                                  Instrument for
                                  Transfers to Third
                                  Parties:
                                    Per violation.......           3,011
12 U.S.C. 1884.................  Violation of the Bank               301
                                  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..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 3110(a)..............  Violation of Various             47,378
                                  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..............           3,791
                                    Tier 2..............          37,901
                                    Tier 3..............   \2\ 1,895,095
12 U.S.C. 3909(d)(1)...........  Violation of                      2,579
                                  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                9,753
                                     person)--Per
                                     violation.
                                    Tier 1 (other                 97,523
                                     person)--Per
                                     violation.
                                    Tier 2 (natural               97,523
                                     person)--Per
                                     violation.
                                    Tier 2 (other                487,616
                                     person)--Per
                                     violation.
                                    Tier 3 (natural              195,047
                                     person)--Per
                                     violation.
                                    Tier 3 (other                975,230
                                     person)--Per
                                     violation.
15 U.S.C. 1639e(k).............  Violation of Appraisal
                                  Independence
                                  Requirements:
                                    First violation.....          11,906
                                    Subsequent                    23,811
                                     violations.
42 U.S.C. 4012a(f)(5)..........  Flood Insurance:
                                    Per violation.......           2,252
------------------------------------------------------------------------
\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)
                                                                \1\
------------------------------------------------------------------------
12 U.S.C. 1464(v)..............  Reports of Condition:

[[Page 86797]]

 
                                    1st Tier............           4,146
                                    2nd Tier............          41,463
                                    3rd Tier............   \2\ 2,073,133
12 U.S.C. 1467(d)..............  Refusal of Affiliate to          10,366
                                  Cooperate in
                                  Examination.
12 U.S.C. 1467a(r).............  Late/Inaccurate
                                  Reports:
                                    1st Tier............           4,146
                                    2nd Tier............          41,463
                                    3rd Tier............   \2\ 2,073,133
12 U.S.C. 1817(j)(16)..........  Violation of Change in
                                  Bank Control Act:
                                    Tier 1..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 1818(i)(2) \3\.......  Violation of Law,
                                  Unsafe or Unsound
                                  Practice, or Breach of
                                  Fiduciary Duty:
                                    Tier 1..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
12 U.S.C. 1820(k)(6)(A)(ii)....  Violation of Post-
                                  Employment
                                  Restrictions:
                                    Per violation.......         341,000
12 U.S.C. 1832(c)..............  Violation of
                                  Withdrawals by
                                  Negotiable or
                                  Transferable
                                  Instruments for
                                  Transfers to Third
                                  Parties:
                                    Per violation.......           2,737
12 U.S.C. 1884.................  Violation of the Bank               301
                                  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..............          10,366
                                    Tier 2..............          51,827
                                    Tier 3..............   \2\ 2,073,133
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:
                                    Tier 1 (natural                9,753
                                     person)--Per
                                     violation.
                                    Tier 1 (other                 97,523
                                     person)--Per
                                     violation.
                                    Tier 2 (natural               97,523
                                     person)--Per
                                     violation.
                                    Tier 2 (other                487,616
                                     person)--Per
                                     violation.
                                    Tier 3 (natural              195,047
                                     person)--Per
                                     violation.
                                    Tier 3 (other                975,230
                                     person)--Per
                                     violation.
15 U.S.C. 1639e(k).............  Violation of Appraisal
                                  Independence
                                  Requirements:
                                    First violation.....          11,906
                                    Subsequent                    23,811
                                     violations.
42 U.S.C. 4012a(f)(5)..........  Flood Insurance:
                                    Per violation.......           2,252
------------------------------------------------------------------------
\1\ 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.


Jonathan V. Gould,
Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller 
of the Currency.
[FR Doc. 2020-28942 Filed 12-30-20; 8:45 am]
BILLING CODE 4810-33-P