[Federal Register Volume 86, Number 2 (Tuesday, January 5, 2021)]
[Notices]
[Pages 299-301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29175]


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FEDERAL DEPOSIT INSURANCE CORPORATION

RIN 3064-ZA22


Notice of Inflation Adjustments for Civil Money Penalties

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of Monetary Penalties 2021.

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SUMMARY: The Federal Deposit Insurance Corporation is providing notice 
of its maximum civil money penalties as adjusted for inflation.

DATES: The adjusted maximum amounts of civil money penalties in this 
notice are applicable to penalties assessed after January 15, 2021, for 
conduct occurring on or after November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Graham N. Rehrig, Senior Attorney, 
Legal Division, (202) 898-3829, [email protected]; Federal Deposit 
Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: This notice announces changes to the maximum 
amount of each civil money penalty (CMP) within the Federal Deposit 
Insurance Corporation's (FDIC) jurisdiction to administer to account 
for inflation under the Federal Civil Penalties Inflation Adjustment 
Act of 1990 (1990 Adjustment Act),\1\ as amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 
Adjustment Act).\2\ Under the 1990 Adjustment Act, as amended, federal 
agencies must make annual adjustments to the maximum amount of each CMP 
the agency administers. 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.
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    \1\ Public Law 101-410, 104 Stat. 890, codified at 28 U.S.C. 
2461 note.
    \2\ Public Law 114-74, 701(b), 129 Stat. 599, codified at 28 
U.S.C. 2461 note.
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    Agencies are required to publish their CMPs, adjusted under the 
multiplier provided by the OMB, by January 15 of the applicable year. 
Agencies, like the FDIC, that have codified the statutory formula for 
making the CMP adjustments may make annual inflation adjustments by 
providing notice in the Federal Register.\3\
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    \3\ See Office of Mgmt. & Budget, Exec. Office of the President, 
OMB Memorandum No. M-21-10, Implementation of Penalty Inflation 
Adjustments for 2021, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 4 (2020), https://www.whitehouse.gov/wp-content/uploads/2020/12/M-21-10.pdf (``OMB 
Guidance''); see also 12 CFR 308.132(d) (FDIC regulation that guides 
readers to the Federal Register to see the annual notice of CMP 
inflation adjustments).
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    On December 23, 2020, the OMB issued guidance to affected agencies 
on implementing the required annual adjustment, which guidance included 
the relevant inflation multiplier.\4\ The FDIC has applied that 
multiplier to the maximum CMPs allowable in 2020 for FDIC-supervised 
institutions to calculate the maximum amount of CMPs that may be 
assessed by the FDIC in 2021.\5\ There were no new statutory CMPs 
administered by the FDIC during 2020.
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    \4\ See OMB Guidance at 1 (providing an inflation multiplier of 
1.01182).
    \5\ Penalties assessed for violations occurring prior to 
November 2, 2015, will be subject to the maximum amounts set forth 
in the FDIC's regulations in effect prior to the enactment of the 
2015 Adjustment Act.
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    The following charts provide the inflation-adjusted maximum CMP 
amounts for use after January 15, 2021--the effective date of the 2021 
annual adjustments--under 12 CFR part 308, for conduct occurring on or 
after November 2, 2015:

                   Maximum Civil Money Penalty Amounts
------------------------------------------------------------------------
                                  Current maximum   Adjusted maximum CMP
      U.S. code citation           CMP (through        \6\ (beginning
                                 January 14, 2021)    January 15, 2021)
------------------------------------------------------------------------
12 U.S.C. 1464(v):
    Tier One CMP \7\..........              $4,098                $4,146
    Tier Two CMP..............              40,979             2,048,915
    Tier Three CMP \8\........              41,463             2,073,133
12 U.S.C. 1467(d).............              10,245                10,366
12 U.S.C. 1817(a):
    Tier One CMP \9\..........               4,098                 4,146
    Tier Two CMP..............              40,979                41,463
    Tier Three CMP \10\.......           2,048,915             2,073,133
12 U.S.C. 1817(c):
    Tier One CMP..............               3,747                 3,791
    Tier Two CMP..............              37,458                37,901
    Tier Three CMP \11\.......           1,872,957             1,895,095
12 U.S.C. 1817(j)(16):
    Tier One CMP..............              10,245                10,366
    Tier Two CMP..............              51,222                51,827
    Tier Three CMP \12\.......           2,048,915             2,073,133
12 U.S.C. 1818(i)(2): \13\
    Tier One CMP..............              10,245                10,366
    Tier Two CMP..............              51,222                51,827
    Tier Three CMP \14\.......           2,048,915             2,073,133

[[Page 300]]

 
12 U.S.C. 1820(e)(4)..........               9,365                 9,476
12 U.S.C. 1820(k)(6)..........             337,016               341,000
12 U.S.C. 1828(a)(3)..........                 127                   129
12 U.S.C. 1828(h): \15\
    For assessments <$10,000..                 127                   129
12 U.S.C. 1829b(j)............              21,410                21,663
12 U.S.C. 1832(c).............               2,976                 3,011
12 U.S.C. 1884................                 297                   301
12 U.S.C. 1972(2)(F):
    Tier One CMP..............              10,245                10,366
    Tier Two CMP..............              51,222                51,827
    Tier Three CMP \16\.......           2,048,915             2,073,133
12 U.S.C. 3909(d).............               2,549                 2,579
15 U.S.C. 78u-2:
    Tier One CMP (individuals)               9,639                 9,753
    Tier One CMP (others).....              96,384                97,523
    Tier Two CMP (individuals)              96,384                97,523
    Tier Two CMP (others).....             481,920               487,616
    Tier Three CMP                         192,768               195,047
     (individuals)............
    Tier Three CMP (others)...             963,837               975,230
15 U.S.C. 1639e(k):
    First violation...........              11,767                11,906
    Subsequent violations.....              23,533                23,811
31 U.S.C. 3802................              11,665                11,803
42 U.S.C. 4012a(f)............               2,226                 2,252
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    \6\ The maximum penalty amount is per day, unless otherwise 
indicated.
    \7\ 12 U.S.C. 1464(v) provides the maximum CMP amounts for the 
late filing of certain Call Reports. In 2012, however, the FDIC 
issued regulations that further subdivided these amounts based upon 
the size of the institution and the lateness of the filing. See 77 
FR 74573, 74576-78 (Dec. 17, 2012), codified at 12 CFR 
308.132(e)(1). These adjusted subdivided amounts are found at the 
end of this chart.
    \8\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \9\ 12 U.S.C. 1817(a) provides the maximum CMP amounts for the 
late filing of certain Call Reports. In 1991, however, the FDIC 
issued regulations that further subdivided these amounts based upon 
the size of the institution and the lateness of the filing. See 56 
FR 37968, 37992-93 (Aug. 9, 1991), codified at 12 CFR 308.132(e)(1). 
These adjusted subdivided amounts are found at the end of this 
chart.
    \10\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \11\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \12\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \13\ These amounts also apply to CMPs in statutes that cross-
reference 12 U.S.C. 1818, such as 12 U.S.C. 2601, 2804(b), 3108(b), 
3349(b), 4009(a), 4309(a), 4717(b); 15 U.S.C. 1607(a), 1681s(b), 
1691(b), 1691c(a), 1693o(a); and 42 U.S.C. 3601.
    \14\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.
    \15\ The $129-per-day maximum CMP under 12 U.S.C. 1828(h), for 
failure or refusal to pay any assessment, applies only when the 
assessment is less than $10,000. When the amount of the assessment 
is $10,000 or more, the maximum CMP under section 1828(h) is 1 
percent of the amount of the assessment for each day that the 
failure or refusal continues.
    \16\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.

------------------------------------------------------------------------
                               Current presumptive  Adjusted presumptive
        CFR citation          CMP (through January     CMP (beginning
                                    14, 2021)         January 15, 2021)
------------------------------------------------------------------------
12 CFR 308.132(e)(1)(i):
    Institutions with $25
     million or more in
     assets:
        1 to 15 days late...  $562................  $569.
        16 or more days late  $1,124..............  $1,137.
    Institutions with less
     than $25 million in
     assets:
        1 to 15 days late     $188................  $190.
         \17\.
        16 or more days late  $374................  $378.
         \18\.
12 CFR 308.132(e)(1)(ii):
    Institutions with $25
     million or more in
     assets:
        1 to 15 days late...  $936................  $947.
        16 or more days late  $1,872..............  $1,894.
    Institutions with less
     than $25 million in
     assets:
        1 to 15 days late...  1/50,000th of the     1/50,000th of the
                               institution's total   institution's total
                               assets.               assets.
        16 or more days late  1/25,000th of the     1/25,000th of the
                               institution's total   institution's total
                               assets.               assets.
12 CFR 308.132(e)(2)........  $40,979.............  $41,463.
12 CFR 308.132(e)(3):

[[Page 301]]

 
    Tier One CMP............  $4,098..............  $4,146.
    Tier Two CMP............  $40,979.............  $41,463.
    Tier Three CMP \19\.....  $2,048,915..........  $2,073,133.
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    \17\ The maximum penalty amount for an institution is the 
greater of this amount or 1/100,000th of the institution's total 
assets.
    \18\ The maximum penalty amount for an institution is the 
greater of this amount or 1/50,000th of the institution's total 
assets.
    \19\ The maximum penalty amount for an institution is the lesser 
of this amount or 1 percent of total assets.

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Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on December 30, 2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020-29175 Filed 1-4-21; 8:45 am]
BILLING CODE 6714-01-P