On February 10, 2017, Department of the Treasury (Treasury), published in the Federal Register a final rule to adjust its civil monetary penalties (CMPs) for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as “the Act”). The rule adjusts CMPs within the jurisdiction of certain components of Treasury, including the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) to the maximum amount required by the Act.
As of January 15, 2017, the applicable statutory maximum civil penalty per violation for each statute enforced by OFAC is as follows: International Emergency Economic Powers Act (IEEPA)— greater of $289,238 or twice the amount of the underlying transaction; Trading with the Enemy Act (TWEA)—$85,236; Foreign Narcotics Kingpin Designation Act (FNKDA)—$1,437,153; Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA)—greater of $76,351 or twice the amount of which a financial institution was required to retain possession or control; and Clean Diamond Trade Act (CDTA)—$13,066. The civil penalty amounts authorized under these statutes are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101–410, as amended, 28 U.S.C. 2461 note). For violations involving laws enforced by FinCEN, penalties will range from $8,084 for failure to register as a money transmitting business (31 U.S.C. 5330 (e)) to $ 1,360,317 for violations of certain due diligence requirements, prohibition on correspondent accounts for shell banks, and special measures (31 U.S.C. 5321(a)(7)).