1. (a) Statutory formula to calculate inflation adjustments. The maximum amount of each civil money penalty in the chart in paragraph (b) of this section is adjusted annually for inflation. The inflation adjustment is calculated by multiplying the maximum dollar amount of the civil money penalty for the previous calendar year by the cost-of-living inflation adjustment multiplier provided annually by the Office of Management and Budget and rounding the total to the nearest dollar.

2. (b) 2017 Inflation adjustment. The maximum amount of each civil money penalty in the following chart applies to penalties assessed after January 15, 2017, for violations that occurred on or after November 2, 2015:

   U.S. Code citation Description and tier (if applicable) Maximum penalty amount (in dollars) 1 12 U.S.C. 93(b)Violation of Various Provisions of the National Bank Act: Tier 19,623 Tier 248,114 Tier 3 2 1,924,589 12 U.S.C. 164Violation of Reporting Requirements: Tier 13,849 Tier 238,492 Tier 3 2 1,924,589 12 U.S.C. 481Refusal of Affiliate to Cooperate in Examination (national bank)9,623 12 U.S.C. 504Violation of Various Provisions of the Federal Reserve Act: Tier 19,623 Tier 248,114 Tier 3 2 1,924,589 12 U.S.C. 1817(j)(16)Violation of Change in Bank Control Act: Tier 19,623 Tier 248,114 Tier 3 2 1,924,589 12 U.S.C. 1818(i)(2) 3Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: Tier 19,623 Tier 248,114 Tier 3 2 1,924,589 12 U.S.C. 1820(k)(6)(A)(ii)Violation of Post-Employment Restrictions: Per violation316,566 12 U.S.C. 1832(c)Violation of Withdrawals by Negotiable or Transferable Instrument for Transfers to Third Parties: Per violation2,795 12 U.S.C. 1884Violation of the Bank Protection Act279 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 19,623 Tier 248,114 Tier 3 2 1,924,589 12 U.S.C. 3110(a)Violation of Various Provisions of the International Banking Act (Federal Branches and Agencies):43,983 12 U.S.C. 3110(c)Violation of Reporting Requirements of the International Banking Act (Federal Branches and Agencies): Tier 13,519 Tier 235,186 Tier 3 2 1,759,309 12 U.S.C. 3909(d)(1)Violation of International Lending Supervision Act2,394 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 person) - Per violation9,054 Tier 1 (other person) - Per violation90,535 Tier 2 (natural person) - Per violation90,535 Tier 2 (other person) - Per violation452,677 Tier 3 (natural person) - Per violation181,071 Tier 3 (other person) - Per violation905,353 15 U.S.C. 1639e(k)Violation of Appraisal Independence Requirements: First violation11,053 Subsequent violations22,105 42 U.S.C. 4012a(f)(5)Flood Insurance: Per violation2,090 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.

3. (c) Future inflation adjustments. Notice of the maximum penalty which may be assessed for the penalties enumerated in paragraph (b) of this section for calendar years after 2017 will be published in the Federal Register on an annual basis on or before January 15 of each calendar year based on the formula in paragraph (a) of this section.

[82 FR 8586, Jan. 27, 2017]