Subject: Civil Money Penalties
Date: January 16, 2018To: Chief Executive Officers of All National Banks and Federal Savings Associations; Federal Branches and Agencies of Foreign Banks; Department and Division Heads; All Examining Personnel; and Other Interested Parties
Description: Notice Adjusting Civil Money Penalties for 2018
On January 12, 2018, the Office of the Comptroller of the Currency (OCC) published in the Federal Register the attached notice to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Adjustment Act). The adjusted maximum penalties are effective immediately for violations occurring on or after November 2, 2015. The OCC is also publishing a technical amendment rule to remove the outdated 2017 CMPs from its regulations at 12 CFR 19.240(b) and 12 CFR 109.103(c)(2). This bulletin rescinds OCC Bulletin 2017-8, “Civil Money Penalties: Final Rule Adjusting Civil Money Penalties for Inflation.”
Note for Community Banks
The OCC may exercise its discretion to impose inflation-adjusted maximum CMPs on any national bank or federal savings association, if appropriate.
The notice updates the inflation-adjusted maximum CMPs that may be imposed by the OCC, using the inflation adjustment required under the 2015 Adjustment Act, as provided by the Office of Management and Budget (OMB) in OMB Memorandum M-18-03 issued December 15, 2017. This revision does not affect the OCC’s discretion to assess a CMP in an amount lower than the maximum allowed.
The 2015 Adjustment Act requires federal agencies with CMP authority to annually adjust each CMP authorized by law that the agency has jurisdiction to administer, in accordance with the guidance published by the OMB. Agencies must adjust their CMPs no later than January 15 of each year and publish those adjustments in the Federal Register.
Please contact Kevin Korzeniewski, Counsel, Legislative and Regulatory Activities Division, at 202-649-5490.
Acting Senior Deputy Comptroller and Chief Counsel
The Federal Register Notice provides two tables of maximum penalty amounts – one for national banks, and one for federal savings assocations. The numbers vary wildly, with the maximum penalty topping out at $1,963,870.