[Federal Register Volume 90, Number 11 (Friday, January 17, 2025)]
[Rules and Regulations]
[Pages 5629-5630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01374]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 1010
Financial Crimes Enforcement Network; Inflation Adjustment of
Civil Monetary Penalties
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Final rule.
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SUMMARY: FinCEN is publishing this final rule to reflect inflation
adjustments to its civil monetary penalties as mandated by the Federal
Civil Penalties Inflation Adjustment Act of 1990, as amended. This rule
adjusts certain maximum civil monetary penalties within the
jurisdiction of FinCEN to the amounts required by that Act.
DATES: Effective January 17, 2025.
FOR FURTHER INFORMATION CONTACT: FinCEN's Regulatory Support Section by
submitting an inquiry at www.fincen.gov/contact.
SUPPLEMENTARY INFORMATION:
I. Background
To improve the effectiveness of civil monetary penalties (CMPs) and
to maintain their deterrent effect, the Federal Civil Penalties
Inflation Adjustment Act of 1990 (the ``Act'') \1\ requires Federal
agencies to adjust for inflation each CMP provided by law within the
jurisdiction of the agency. Under the Act, agencies are required to
adjust CMPs annually and publish these adjustments in the Federal
Register.\2\ Agencies are to make the adjustments without engaging in
notice-and-comment rulemaking, and these adjustments may be immediately
effective upon publication.\3\ The 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.\4\ FinCEN publishes CMP inflation adjustments in its
regulations at 31 CFR 1010.821.
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\1\ Federal Civil Penalties Inflation Adjustment Act of 1990
(the ``Act''), Public Law 101-410, 104 Stat. 890 (Oct. 5, 1990), as
amended by the Debt Collection Improvement Act of 1996, Public Law
104-134, 110 Stat. 1321-373 (Apr. 26, 1996); the Federal Reports
Elimination Act of 1998, Public Law 105-362, 112 Stat. 3293 (Nov.
10, 1998); and the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114-74, 129 Stat. 599 (Nov. 2,
2015), codified as a statutory note to 28 U.S.C. 2461.
\2\ Act, sec. 4(a).
\3\ Act, sec. 4(b)(2) (adjustments are to be made
``notwithstanding'' the rulemaking requirements of 5 U.S.C. 553 of
the Administrative Procedure Act).
\4\ The increased CMPs, however, apply only with respect to
underlying violations occurring after November 2, 2015, the date of
enactment of the most recent amendment to the Act. Act, sec. 6.
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II. Method of Calculation
The method of calculating CMP adjustments applied in this final
rule is determined by the Act. Under the Act and Office of Management
and Budget (OMB) guidance, annual inflation adjustments 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.\5\ As set forth in OMB Memorandum
M-25-02 of December 17, 2024, the adjustment multiplier for 2025 is
1.02598. To complete the 2025 annual adjustment, each current FinCEN
CMP is multiplied by the 2025 adjustment multiplier. Under the Act, any
increase in CMP must be rounded to the nearest multiple of $1.\6\
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\5\ Act, sec. 5; OMB Mem. M-25-02, Implementation of Penalty
Inflation Adjustments for 2025, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec.
17, 2024), available at https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf.
\6\ Act, sec. 5(a). FinCEN previously applied a catch-up
adjustment for each penalty subject to the Act in 2016 based on the
year and corresponding amount(s) for which the maximum penalty or
range of minimum and maximum penalties was established or last
adjusted, whichever is later. See FinCEN, Civil Monetary Penalty
Adjustment and Table, 81 FR 42503, 42504 (June 30, 2016). Because
the year of establishment or last adjustment is different for
different penalties, penalties that were of the same size when each
was promulgated can have different values today if promulgated at
different times.
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Procedural Matters
1. Administrative Procedure Act
Section 4(b) of the Act requires agencies, beginning in 2017, to
make annual adjustments for inflation to CMPs notwithstanding the
rulemaking requirements of 5 U.S.C. 553. Additionally, the methodology
used 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. Accordingly, prior public notice and
an opportunity for public comment and a delayed effective date 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, as amended.
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 in 31 CFR Part 1010
Administrative practice and procedure, Aliens, Authority
delegations (Government agencies), Banks, banking, Brokers, Business
and industry, Citizenship and naturalization, Commodity futures,
Currency, Electronic filing, Federal savings associations, Federal-
States relations, Foreign persons, Holding companies, Indians,
Indians--law, Indians--tribal government, Insurance companies,
Investigations, Investment advisers, Investment companies, Law
enforcement, Penalties, Reporting and
[[Page 5630]]
recordkeeping requirements, Small businesses, Securities, Terrorism,
Time.
Authority and Issuance
For the reasons set forth in the preamble, part 1010 of chapter X
of title 31 of the Code of Federal Regulations is amended as follows:
PART 1010--GENERAL PROVISIONS
0
1. 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,
5316-5336; title III, sec. 314 Pub. L. 107-56, 115 Stat. 307; sec.
2006, Pub. L. 114-41, 129 Stat. 457; sec. 701 Pub. L. 114-74, 129
Stat. 599; sec. 6403, Pub. L. 116-283, 134 Stat. 3388.
0
2. Amend Sec. 1010.821 by revising table 1 to paragraph (b) to read as
follows:
Sec. 1010.821 Penalty adjustment and table.
* * * * *
(b) * * *
Table 1 to Sec. 1010.821--Penalty Adjustment Table
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Maximum penalty amounts or
range of minimum and
U.S. Code citation Civil monetary penalty Penalties as last amended maximum penalty amounts for
description by statute penalties assessed on or
after January 17, 2025
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12 U.S.C. 1829b(j)............ Relating to $10,000 $26,262
Recordkeeping
Violations for Funds
Transfers.
12 U.S.C. 1955................ Willful or Grossly 10,000 26,262
Negligent
Recordkeeping
Violations.
31 U.S.C. 5318(k)(3)(C)....... Failure to Terminate 10,000 17,765
Correspondent
Relationship with
Foreign Bank.
31 U.S.C. 5321(a)(1).......... General Civil Penalty 25,000 71,545
Provision for Willful -100,000 -286,184
Violations of Bank
Secrecy Act
Requirements.
31 U.S.C. 5321(a)(5)(B)(i).... Foreign Financial 10,000 16,536
Agency Transaction--
Non-Willful Violation
of Transaction.
31 U.S.C. 5321(a)(5)(C)(i)(I). Foreign Financial 100,000 165,353
Agency Transaction--
Willful Violation of
Transaction.
31 U.S.C. 5321(a)(6)(A)....... Negligent Violation by 500 1,430
Financial Institution
or Non-Financial
Trade or Business.
31 U.S.C. 5321(a)(6)(B)....... Pattern of Negligent 50,000 111,308
Activity by Financial
Institution or Non-
Financial Trade or
Business.
31 U.S.C. 5321(a)(7).......... Violation of Certain 1,000,000 1,776,364
Due Diligence
Requirements,
Prohibition on
Correspondent
Accounts for Shell
Banks, and Special
Measures.
31 U.S.C. 5330(e)............. Civil Penalty for 5,000 10,556
Failure to Register
as Money Transmitting
Business.
31 U.S.C. 5336(h)(3)(A)(i).... Civil Penalty for 500 606
Beneficial Ownership
Information Reporting
Violation.
31 U.S.C. 5336(h)(3)(B)(i).... Civil Penalty for 500 606
Unauthorized
Disclosure or Use of
Beneficial Ownership
Information.
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Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2025-01374 Filed 1-16-25; 8:45 am]
BILLING CODE 4810-02-P