[Federal Register Volume 88, Number 2 (Wednesday, January 4, 2023)]
[Rules and Regulations]
[Pages 289-291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28539]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 88, No. 2 / Wednesday, January 4, 2023 / 
Rules and Regulations  

[[Page 289]]



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 2023.

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SUMMARY: This document announces changes to the Office of the 
Comptroller of the Currency's (OCC) maximum civil money penalties as 
adjusted for inflation. The inflation adjustments are required to 
implement the Federal Civil Penalties Inflation Adjustment Act of 1990, 
as amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015.

DATES: The adjusted maximum amount of civil money penalties in this 
document are applicable to penalties assessed on or after January 4, 
2023 for conduct occurring on or after November 2, 2015.

FOR FURTHER INFORMATION CONTACT: Lee Walzer, Counsel, Chief Counsel's 
Office, (202) 649-5490, Office of the Comptroller of the Currency.

SUPPLEMENTARY INFORMATION: This document announces changes to the 
maximum amount of each civil money penalty (CMP) within the OCC's 
jurisdiction to administer to account for inflation pursuant to the 
Federal Civil Penalties Inflation Adjustment Act of 1990 (the 1990 
Adjustment Act),\1\ as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (the 2015 Adjustment Act).\2\ 
Under the 1990 Adjustment Act, as amended, federal agencies must make 
annual adjustments to the maximum amount of each CMP they administer. 
The Office of Management and Budget (OMB) is required to issue guidance 
to federal agencies no later than December 15 of each year providing an 
inflation adjustment multiplier (i.e., the inflation adjustment factor 
agencies must use) applicable to CMPs assessed in the following year. 
The agencies are required to publish their CMPs, adjusted pursuant to 
the multiplier provided by the OMB, by January 15 of the applicable 
year.
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    \1\ Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at 
28 U.S.C. 2461 note.
    \2\ Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015, 
129 Stat. 599, codified at 28 U.S.C. 2461 note.
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    To the extent an agency codified a CMP amount in its regulations, 
the agency would need to update that amount by regulation. However, if 
an agency codified a formula for making the CMP adjustments, then 
subsequent adjustments can be made solely by notice.\3\ In 2018, the 
OCC published a final regulation that removed the CMP amounts from its 
regulations while updating the CMP amounts for inflation through the 
notice process.\4\
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    \3\ See OMB Memorandum M-18-03, Implementation of the 2018 
Annual Adjustment Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, at 4, which permits 
agencies that have codified the formula to adjust CMPs for inflation 
to update the penalties through a notice rather than a regulation.
    \4\ 83 FR 1517 (Jan. 12, 2018) (final rule); 83 FR 1657 (Jan. 
12, 2018) (2018 CMP Notice).
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    On December 15, 2022, the OMB issued guidance to affected agencies 
on implementing the required annual adjustment, which included the 
relevant inflation multiplier.\5\ The OCC has applied that multiplier 
to the maximum CMPs allowable in 2022 for national banks and Federal 
savings associations as listed in the 2022 CMP notice \6\ to calculate 
the maximum amount of CMPs that may be assessed by the OCC in 2023.\7\ 
There were no new statutory CMPs administered by the OCC during 2022.
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    \5\ The inflation adjustment multiplier for 2023 is 1.07745. See 
OMB Memorandum M-23-05, Implementation of Penalty Inflation 
Adjustments for 2023, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Dec. 15, 2022).
    \6\ See 87 FR 1657 (Jan. 12, 2022).
    \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 4, 2023, pursuant to 12 CFR 19.240(b) and 
109.103(c)(2) for conduct occurring on or after November 2, 2015:

                 Penalties Applicable to National Banks
------------------------------------------------------------------------
                                                              Maximum
                                   Description and tier   penalty amount
       U.S. code citation             (if applicable)      (in dollars)
                                                                \1\
------------------------------------------------------------------------
12 U.S.C. 93(b).................  Violation of Various
                                   Provisions of the
                                   National Bank Act:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677
12 U.S.C. 164...................  Violation of Reporting
                                   Requirements:
                                     Tier 1.............           4,745
                                     Tier 2.............          47,454
                                     Tier 3.............   \2\ 2,372,677
12 U.S.C. 481...................  Refusal of Affiliate            11,864
                                   to Cooperate in
                                   Examination.
12 U.S.C. 504...................  Violation of Various
                                   Provisions of the
                                   Federal Reserve Act:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677

[[Page 290]]

 
12 U.S.C. 1817(j)(16)...........  Violation of Change in
                                   Bank Control Act:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677
12 U.S.C. 1818(i)(2) \3\........  Violation of Law,
                                   Unsafe or Unsound
                                   Practice, or Breach
                                   of Fiduciary Duty:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677
12 U.S.C. 1820(k)(6)(A)(ii).....  Violation of Post-
                                   Employment
                                   Restrictions:
                                     Per violation......         390,271
12 U.S.C. 1832(c)...............  Violation of
                                   Withdrawals by
                                   Negotiable or
                                   Transferable
                                   Instrument for
                                   Transfers to Third
                                   Parties:
                                     Per violation......           3,446
12 U.S.C. 1884..................  Violation of the Bank              345
                                   Protection Act.
12 U.S.C. 1972(2)(F)............  Violation of Anti-
                                   Tying Provisions
                                   regarding
                                   Correspondent
                                   Accounts, Unsafe or
                                   Unsound Practices, or
                                   Breach of Fiduciary
                                   Duty:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677
12 U.S.C. 3110(a)...............  Violation of Various            54,224
                                   Provisions of the
                                   International Banking
                                   Act (Federal Branches
                                   and Agencies):.
12 U.S.C. 3110(c)...............  Violation of Reporting
                                   Requirements of the
                                   International Banking
                                   Act (Federal Branches
                                   and Agencies):
                                     Tier 1.............           4,339
                                     Tier 2.............          43,377
                                     Tier 3.............   \2\ 2,168,915
12 U.S.C. 3909(d)(1)............  Violation of                     2,951
                                   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              11,162
                                      person)--Per
                                      violation.
                                     Tier 1 (other               111,614
                                      person)--Per
                                      violation.
                                     Tier 2 (natural             111,614
                                      person)--Per
                                      violation.
                                     Tier 2 (other               558,071
                                      person)--Per
                                      violation.
                                     Tier 3 (natural             223,229
                                      person)--Per
                                      violation.
                                     Tier 3 (other             1,116,140
                                      person)--Per
                                      violation.
15 U.S.C. 1639e(k)..............  Violation of Appraisal
                                   Independence
                                   Requirements:
                                     First violation....          13,627
                                     Subsequent                   27,252
                                      violations.
42 U.S.C. 4012a(f)(5)...........  Flood Insurance:
                                     Per violation......           2,577
------------------------------------------------------------------------
\1\ The maximum penalty amount is per day, unless otherwise indicated.
\2\ The maximum penalty amount for a national bank is the lesser of this
  amount or 1 percent of total assets.
\3\ These amounts also apply to CMPs in statutes that cross-reference 12
  U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15
  U.S.C. 1607, 1693o, 1681s, 1691c, and 1692l.


          Penalties Applicable to Federal Savings Associations
------------------------------------------------------------------------
                                                              Maximum
                                                          penalty amount
       U.S. code citation             CMP description      (in dollars)
                                                                \8\
------------------------------------------------------------------------
12 U.S.C. 1464(v)...............  Reports of Condition:
                                     1st Tier...........           4,745
                                     2nd Tier...........          47,454
                                     3rd Tier...........   \2\ 2,372,677
12 U.S.C. 1467(d)...............  Refusal of Affiliate            11,864
                                   to Cooperate in
                                   Examination.
12 U.S.C. 1467a(r)..............  Late/Inaccurate
                                   Reports:
                                     1st Tier...........           4,745
                                     2nd Tier...........          47,454
                                     3rd Tier...........   \2\ 2,372,677
12 U.S.C. 1817(j)(16)...........  Violation of Change in
                                   Bank Control Act:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677
12 U.S.C. 1818(i)(2) \3\........  Violation of Law,
                                   Unsafe or Unsound
                                   Practice, or Breach
                                   of Fiduciary Duty:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677

[[Page 291]]

 
12 U.S.C. 1820(k)(6)(A)(ii).....  Violation of Post-
                                   Employment
                                   Restrictions:
                                     Per violation......         390,271
12 U.S.C. 1832(c)...............  Violation of
                                   Withdrawals by
                                   Negotiable or
                                   Transferable
                                   Instruments for
                                   Transfers to Third
                                   Parties:
                                     Per violation......           3,132
12 U.S.C. 1884..................  Violation of the Bank              345
                                   Protection Act.
12 U.S.C. 1972(2)(F)............  Violation of
                                   Provisions regarding
                                   Correspondent
                                   Accounts, Unsafe or
                                   Unsound Practices, or
                                   Breach of Fiduciary
                                   Duty:
                                     Tier 1.............          11,864
                                     Tier 2.............          59,316
                                     Tier 3.............   \2\ 2,372,677
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            11,162
                                      person)--Per
                                      violation.
                                     1st Tier (other             111,614
                                      person)--Per
                                      violation.
                                     2nd Tier (natural           111,614
                                      person)--Per
                                      violation.
                                     2nd Tier (other             558,071
                                      person)--Per
                                      violation.
                                     3rd Tier (natural           223,229
                                      person)--Per
                                      violation.
                                     3rd Tier (other           1,116,140
                                      person)--Per
                                      violation.
15 U.S.C. 1639e(k)..............  Violation of Appraisal
                                   Independence
                                   Requirements:
                                     First violation....          13,627
                                     Subsequent                   27,252
                                      violations.
42 U.S.C. 4012a(f)(5)...........  Flood Insurance:
                                     Per violation......           2,577
------------------------------------------------------------------------
\8\ The maximum penalty amount is per day, unless otherwise indicated.
\2\ The maximum penalty amount for a federal savings association is the
  lesser of this amount or 1 percent of total assets.
\3\ These amounts also apply to statutes that cross-reference 12 U.S.C.
  1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 U.S.C.
  1607, 1681s, 1691c, and 1692l.


D.J. Fink,
Associate Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2022-28539 Filed 1-3-23; 8:45 am]
BILLING CODE 4810-33-P