June 13, 2019: CMPs getting inflated again…

Under the Federal Civil Penalty Inflation Adjustment Act of 1990 (amended under the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjusement Act Improvements Act of 2015), federal agencies get to adjust their penalty schedules for inflation. For OFAC, that means the statutory maximums imposed for non self-disclosed, egregious violations.

  • The Trading with the Enemy Act (TWEA) penalties, which, until a few years back, were capped at $65,000 per violation (originally I believe they started out at some ridiculously low figure, like $11,000), will now land at $89.170.
  • Under the International Emergency Economic Powers Act (IEEPA), which started out with $250,000 penalties for low-value transactions, the maximum penalty will now be $302,584 or twice the transaction amount.
  • The Foreign Narcotics Kingpin Designation Act (FNKDA or Kingpin Act) maximum CMP, which started out at $1,000,000 back in the day, now tops out at $1,503,470
  • The maximum penalty under the Antiterrorism and Effective Death Penalty Act (AEDPA) goes from $77,909 to $79,874, while that under the Clean Diamond Trade Act (CDTA) goes from $13,333 to $13,669

Note: Mr Watchlist has never seen, since he started following this stuff, fines under AEDPA or CDTA. AEDPA is not really a surprise because many Sanctions programs are authorized under AEDPA and IEEPA, and IEEPA has a more punitive CMP scale.

Links:

OFAC Notice

Treasury Notice

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