81 FR 43070 - Implementation of the Federal Civil Penalties Inflation Adjustment Act

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control

Federal Register Volume 81, Issue 127 (July 1, 2016)

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing this interim final rule to amend its regulations for the relevant sanctions programs it administers to implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. In particular, this rule adjusts for inflation the maximum amount of the civil monetary penalties that may be assessed under relevant OFAC regulations, including by making conforming changes to OFAC's ``Economic Sanctions Enforcement Guidelines.''

[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43070-43077]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15552]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 501, 535, 536, 537, 538, 539, 541, 542, 543, 544, 546, 
547, 548, 549, 560, 561, 566, 576, 588, 592, 593, 594, 595, 597, 
and 598.


Implementation of the Federal Civil Penalties Inflation 
Adjustment Act

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Interim final rule with request for comments.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is issuing this interim final rule to amend its 
regulations for the relevant sanctions programs it administers to 
implement the Federal Civil Penalties Inflation Adjustment Act of 1990, 
as amended by the Debt Collection Improvement Act of 1996 and the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015. In particular, this rule adjusts for inflation the maximum amount 
of the civil monetary penalties that may be assessed under relevant 
OFAC regulations, including by making conforming changes to OFAC's 
``Economic Sanctions Enforcement Guidelines.''

DATES: This rule is effective August 1, 2016. Comments must be received 
on or before August 1, 2016.

ADDRESSES: You may submit comments by any of the following methods:
    Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions on the Web site for submitting comments.
    Fax: Attn: Request for Comments (Amendments to OFAC Regulations to 
Implement the Federal Civil Penalties Inflation Adjustment Act) 202-
622-1657.
    Mail: Attn: Request for Comments (Amendments to OFAC Regulations to 
Implement the Federal Civil Penalties Inflation Adjustment Act), Office 
of Foreign Assets Control, Department of the Treasury, 1500 
Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 20220.

[[Page 43071]]

    Instructions: All submissions received must include the agency name 
and the Federal Register Doc. number that appears at the end of this 
document. All comments, including attachments and other supporting 
materials, will become part of the public record and subject to public 
disclosure. Sensitive personal information, such as account numbers or 
Social Security numbers, should not be included. Comments generally 
will not be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's 
Office of Foreign Assets Control: Assistant Director for Enforcement, 
tel.: 202-622-2430; Assistant Director for Licensing, tel.: 202-622-
2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855, 
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490; or the Department of the Treasury's Office of the Chief 
Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 
202-622-2410.

SUPPLEMENTARY INFORMATION: 

Electronic Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (http://www.treasury.gov/ofac).

Background

    Section 4 of the Federal Civil Penalties Inflation Adjustment Act 
(1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note), as amended 
by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134, 110 
Stat. 1321-373) and the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C. 
2461 note) (collectively, the FCPIA Act), requires each federal agency 
with statutory authority to assess civil monetary penalties (CMPs) to 
adjust CMPs for inflation according to a formula described in section 5 
of the FCPIA Act. One purpose of the FCPIA Act is to ensure that CMPs 
continue to maintain their deterrent effect through periodic cost-of-
living based adjustments.
    The FCPIA Act directs agencies to adjust the level of CMPs for 
inflation annually, with an initial ``catch up'' adjustment effective 
no later than August 1, 2016. Catch-up adjustments will be based on the 
percent change between the Consumer Price Index for all Urban Consumers 
(CPI-U) for the month of October in the year of the last non-FCPIA-Act-
based adjustment and the October 2015 CPI-U. In accordance with the 
FCPIA Act, however, the amount of the CMP catch-up adjustment shall not 
exceed 150 percent of the corresponding level in effect on November 2, 
2015 (the ``maximum adjustment''). Annual inflation adjustments will be 
based on the percent change between the October CPI-U preceding the 
date of the adjustment and the prior year's October CPI-U. The FCPIA 
Act requires agencies to round all CMP levels to the nearest dollar 
after applying the multiplier.
    In order to complete the catch-up adjustment, the FCPIA Act directs 
agencies to use as a starting point for each CMP the year and 
corresponding amount(s) for which the maximum CMP level or range of 
minimum and maximum CMPs was established or last adjusted, whichever is 
later, other than pursuant to the FCPIA Act. The catch-up calculations 
therefore exclude prior inflationary adjustments under the FCPIA Act.
    On February 24, 2016, the Office of Management and Budget issued 
written guidance providing agencies with CPI-U related multipliers to 
use when adjusting the CMP level or range of CMP levels based on the 
year the CMP was established or last adjusted by statute or regulation. 
(Memorandum for the Heads of Executive Departments and Agencies: 
Implementation of the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (OMB Guidance)).
    The adjusted civil penalty amounts described in this rule are 
applicable only to civil penalties assessed after August 1, 2016, whose 
associated violations occurred after November 2, 2015, the date of 
enactment of the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act. Therefore, violations occurring on or before November 
2, 2015, and assessments made prior to August 1, 2016 whose associated 
violations occurred after November 2, 2015, will continue to be subject 
to the civil monetary penalty amounts set forth in OFAC's existing 
regulations.
    OFAC currently is authorized to impose CMPs pursuant to five 
statutes: the Trading With the Enemy Act (50 U.S.C. 4315) (TWEA); the 
International Emergency Economic Powers Act (50 U.S.C. 1705) (IEEPA); 
the Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 104-
132, 110 Stat. 1250; 18 U.S.C. 2339B) (AEDPA); the Foreign Narcotics 
Kingpin Designation Act (Pub. L. 106-120, 113 Stat. 1632; 21 U.S.C. 
1901-1908) (FNKDA); and the Clean Diamond Trade Act (Pub. L. 108-19, 
117 Stat. 631; 19 U.S.C. 3901-3913) (CDTA). The maximum CMPs under the 
statutes were last adjusted or set by statute as follows: TWEA in 1992; 
IEEPA in 2007; AEDPA in 1996; FNKDA in 1999, and CDTA in 2003.
    TWEA. The maximum TWEA-based CMP was established at $50,000 in 1992 
by the National Defense Authorization Act for Fiscal Year 1993 (Pub. L. 
102-484, 106 Stat. 2315, 50 U.S.C. 4315). Although there were two 
subsequent adjustments, bringing the current maximum CMP to $65,000, 
those adjustments were made pursuant to the FCPIA Act and therefore 
will not be considered for purposes of determining the new maximum CMP. 
Pursuant to the OMB Guidance, the relevant inflation factor is 1.67728. 
Multiplying the CMP amount of $50,000 by the inflation factor of 
1.67728 and rounding to the nearest dollar results in $83,864. This 
would be an increase of $33,864. Pursuant to the FCPIA Act, the maximum 
adjustment amount is 150% of $65,000 (the CMP in effect on November 2, 
2015), or $97,500. The increase does not exceed the maximum adjustment. 
Therefore, the maximum TWEA-based CMP effective August 1, 2016 is 
increased to the inflation-adjusted amount of $83,864 per violation.
    IEEPA. The maximum IEEPA-based CMP of the greater of $250,000 or 
twice the amount of the underlying transaction was set in 2007 by the 
International Emergency Economic Powers Enhancement Act (Pub. L. 110-
96, 121 Stat. 1011; 50 U.S.C. 1705 note). Pursuant to the OMB Guidance, 
the relevant inflation factor is 1.13833. Multiplying the current 
penalty amount of $250,000 by the inflation factor of 1.13833 and 
rounding to the nearest dollar amount results in a maximum penalty 
amount of the greater of $284,582 or twice the amount of the underlying 
transaction per violation. This would be an increase of $34,582. 
Pursuant to the FCPIA Act, the maximum adjustment is 150% of $250,000 
(the CMP in effect on November 2, 2015), or $375,000. The increase does 
not exceed the maximum adjustment. Therefore, the maximum IEEPA CMP 
effective August 1, 2016 is increased to the inflation-adjusted amount 
of $284,582 or twice the amount of the underlying transaction per 
violation. The FCPIA Act applies only to CMPs that are for a specific 
monetary amount as provided by Federal law. Accordingly, the 
alternative IEEPA CMP of twice the amount of the underlying transaction 
remains unchanged.
    AEDPA. The maximum AEDPA-based CMP of the greater of $50,000 or 
twice the amount of which a financial institution was required to 
retain possession or control was set by statute in 1996 (Pub. L. 104-
132, 110 Stat.

[[Page 43072]]

1250; 18 U.S.C. 2339B). Although there was one subsequent adjustment, 
bringing the current maximum CMP to $55,000, that adjustment was made 
pursuant to the FCPIA Act and therefore will not be considered in the 
new maximum CMP calculation. Pursuant to the OMB Guidance, the relevant 
inflation factor is 1.50245. Multiplying the CMP amount of $50,000 by 
the inflation factor of 1.50245 and rounding to the nearest dollar 
results in $75,122. This would be an increase of $20,122. Pursuant to 
the FCPIA Act, the maximum adjustment is 150% of $55,000 (the CMP in 
effect on November 2, 2015), or $82,500. The increase does not exceed 
the maximum adjustment. Therefore, the maximum AEDPA-based CMP per 
violation effective August 1, 2016 is increased to the inflation-
adjusted amount of the greater of $75,122 or twice the amount of which 
a financial institution was required to retain possession or control. 
The FCPIA Act applies only to CMPs that are for a specific monetary 
amount as provided by Federal law. Accordingly, the alternative AEDPA 
CMP of twice the amount of which a financial institution was required 
to retain possession or control remains unchanged.
    FNKDA. The maximum FNKDA-based CMP of $1,000,000 was set in 1999 by 
the Intelligence Authorization Act for Fiscal Year 2000 (Pub. L. 106-
120, 113 Stat. 1632; 21 U.S.C. 1901-1908). Although there was one 
subsequent adjustment, bringing the current maximum CMP to $1,075,000, 
that adjustment was made pursuant to the FCPIA Act and therefore will 
not be considered in the new maximum CMP calculation. Pursuant to OMB 
Guidance, the relevant inflation factor is 1.41402. Multiplying the CMP 
of $1,000,000 by the inflation factor of 1.41402 and rounding to the 
nearest dollar results in $1,414,020. This would be an increase of 
$414,020. Pursuant to the FCPIA Act, the maximum adjustment is 150% of 
$1,075,000 (the CMP in effect on November 2, 2015), or $1,612,500. The 
increase does not exceed the maximum adjustment. Therefore, as of 
August 1, 2016, the maximum FNKDA-based CMP is increased to the 
inflation-adjusted amount of $1,414,020 per violation.
    CDTA. The maximum CDTA-based CMP of $10,000 was set by statute in 
2003. (Pub. L. 108-19, 117 Stat. 631; 19 U.S.C. 3901-3913). Pursuant to 
the OMB Guidance, the relevant inflation factor is 1.28561. Multiplying 
the current penalty of $10,000 by the inflation factor of 1.28561 and 
rounding to the nearest dollar results in $12,856. This would be an 
increase of $2,856. Pursuant to the FCPIA Act, the maximum adjustment 
is 150% of $10,000 (the CMP in effect on November 2, 2015), or $15,000. 
The increase does not exceed the maximum adjustment. Therefore, the 
maximum CDTA-based CMP effective August 1, 2016 is increased to the 
inflation-adjusted amount of $12,856 per violation.
    The table below summarizes the changes to the penalty amounts:

------------------------------------------------------------------------
                                                       Penalty amount
           Statute              Existing penalty     effective August 1,
                                     amount                 2016
------------------------------------------------------------------------
TWEA........................  $65,000.............  $83,864.
IEEPA.......................  The greater of        The greater of
                               $250,000 or twice     $284,582 or twice
                               the amount of the     the amount of the
                               underlying            underlying
                               transaction.          transaction.
AEDPA.......................  The greater of        The greater of
                               $55,000 or twice      $75,122 or twice
                               the amount of which   the amount of which
                               a financial           a financial
                               institution was       institution was
                               required to retain    required to retain
                               possession or         possession or
                               control.              control.
FNKDA.......................  $1,075,000..........  $1,414,020.
CDTA........................  $10,000.............  $12,856.
------------------------------------------------------------------------

    The regulations for many of the sanctions programs administered by 
OFAC, as well as the Reporting, Procedures and Penalties Regulations 
and the Economic Sanctions Enforcement Guidelines appended thereto, 
contain references to the current penalty amounts. This interim final 
rule revises the relevant parts of 31 CFR chapter V to update these 
amounts. The authority sections of the relevant parts are not being 
amended at this time.
    This interim final rule also makes certain technical and conforming 
changes to the Enforcement Guidelines. For example, OFAC is removing 
one of the examples of a blocked transaction appearing at 31 CFR 
501.604(b) because it refers to conduct that is no longer prohibited 
following the issuance of Executive Order 13350 of July 29, 2004.

Effective Date

    The FCPIA Act requires agencies to make adjustments for inflation 
to CMPs and to provide new CMPs through an interim final rulemaking to 
be published by July 1, 2016. The FCPIA Act further provides that the 
adjustments for inflation shall take effect no later than August 1, 
2016.

Procedural Requirements

Notice and Comment

    As required by the FCPIA Act, these amendments are being published 
as an interim final rule with an effective date of August 1, 2016. 
Although other notice and comment procedures are not required, OFAC 
invites comments on this notice.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this rule does 
not impose information collection requirements that would require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501 et 
seq.

List of Subjects for 31 CFR Parts 501, 535, 536, 537, 538, 539, 
541, 542, 543, 544, 546, 547, 548, 549, 560, 561, 566, 576, 588, 
592, 593, 594, 595, 597, and 598

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.
    For the reasons set forth in the preamble, 31 CFR chapter V is 
amended as follows:

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
1. The authority citation for part 501 continues to read as follows:

    Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a), 
6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C. 
1701-1706; 50 U.S.C. App. 1-44.

[[Page 43073]]

Subpart C--Reports


Sec.  501.604  [Amended]

0
2. Amend Sec.  501.604 by removing paragraph (b)(2) and redesignating 
paragraphs (b)(3) through (5) as paragraphs (b)(2) through (4), 
respectively.

Subpart D--Trading With the Enemy Act (TWEA) Penalties

0
3. Amend Sec.  501.701 by adding a note to paragraph (a)(1) and 
revising paragraph (a)(3) to read as follows:


Sec.  501.701  Penalties.

    (a) * * *
    (1) * * *

    Note 1 to paragraph (a)(1): As of August 1, 2016, TWEA provides 
for a maximum civil penalty not to exceed $83,864.

* * * * *
    (3) The Secretary of the Treasury may impose a civil penalty of not 
more than $83,864 per violation on any person who violates any license, 
order, or regulation issued under TWEA.

    Note to paragraph (a)(3): The current civil penalty cap may be 
adjusted for inflation pursuant to the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 
U.S.C. 2461 note).

* * * * *

0
4. Amend appendix A to part 501 by revising section V.B.2.a to read as 
follows:

Appendix A to Part 501--Economic Sanctions Enforcement Guidelines

* * * * *

V. Civil Penalties

* * * * *
    B. * * *
    2. * * *
    a. Base Category Calculation
    i. In a non-egregious case, if the apparent violation is disclosed 
through a voluntary self-disclosure by the Subject Person, the base 
amount of the proposed civil penalty in the Pre-Penalty Notice shall be 
one-half of the transaction value, capped at a maximum base amount of 
$142,291 per violation, except where the statutory maximum penalty 
applicable to the apparent violation is less than $284,582, in which 
case the base amount of the proposed civil penalty in the Pre-Penalty 
Notice shall be capped at one-half the statutory maximum penalty 
applicable to the apparent violation.
    ii. In a non-egregious case, if the apparent violation comes to 
OFAC's attention by means other than a voluntary self-disclosure, the 
base amount of the proposed civil penalty in the Pre-Penalty Notice 
shall be the ``applicable schedule amount,'' as defined above. For 
apparent violations where the statutory maximum penalty applicable to 
the apparent violation is $284,582 or greater, the maximum base amount 
shall be capped at $284,582. For apparent violations where the 
statutory maximum penalty applicable to the apparent violation is less 
than $284,582, the maximum base amount shall be capped at the statutory 
maximum penalty amount applicable to the apparent violation.
    iii. In an egregious case, if the apparent violation is disclosed 
through a voluntary self-disclosure by a Subject Person, the base 
amount of the proposed civil penalty in the Pre-Penalty Notice shall be 
one-half of the applicable statutory maximum penalty applicable to the 
violation.
    iv. In an egregious case, if the apparent violation comes to OFAC's 
attention by means other than a voluntary self-disclosure, the base 
amount of the proposed civil penalty in the Pre-Penalty Notice shall be 
the applicable statutory maximum penalty amount applicable to the 
violation.

    Note to paragraph (a): As of August 1, 2016, 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 $284,582 or twice the amount of the 
underlying transaction; Trading with the Enemy Act (TWEA)--$83,864; 
Foreign Narcotics Kingpin Designation Act (FNKDA)--$1,414,020; 
Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA)--
greater of $75,122 or twice the amount of which a financial 
institution was required to retain possession or control; and Clean 
Diamond Trade Act (CDTA)--$12,856. 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).

    The following matrix represents the base amount of the proposed 
civil penalty for each category of violation:
[GRAPHIC] [TIFF OMITTED] TR01JY16.000


[[Page 43074]]


* * * * *

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

0
5. The authority citation for part 535 continues to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12170, 44 FR 
65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR, 
1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p. 
253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279, 
46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3 
CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp., 
p. 112; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O. 
12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 
14111, 3 CFR, 1981 Comp., p. 139.

Subpart G--Penalties.

0
6. Revise the note to paragraph (a)(1) of Sec.  535.701 to read as 
follows:


Sec.  535.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

0
7. The authority citation for part 536 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011; E.O. 12978, 60 FR 54579, 3 CFR, 1995 
Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.

Subpart G--Penalties

0
8. Revise the note to paragraph (a)(1) of Sec.  536.701 to read as 
follows:


Sec.  536.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 537--BURMESE SANCTIONS REGULATIONS

0
9. The authority citation for part 537 continues read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 110-96, 121 Stat. 
1011 (50 U.S.C. 1701 note); Pub. L. 110-286, 122 Stat. 2632 (50 
U.S.C. 1701 note); E.O. 13047, 62 FR 28301, 3 CFR, 1997 Comp., p. 
202; E.O. 13310, 68 FR 44853, 3 CFR, 2003 Comp., p. 241; E.O. 13448, 
72 FR 60223, 3 CFR, 2007 Comp., p. 304; E.O. 13464, 73 FR 24491, 3 
CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR 41243, 3 CFR, 2012 Comp., 
p. 279; E.O. 13651, 78 FR 48793 (August 9, 2013); Determination No. 
2009-11, 74 FR 3957, 3 CFR, 2009 Comp., p. 330.

Subpart G--Penalties

0
10. Revise the note to paragraph (a)(1) of Sec.  537.701 to read as 
follows:


Sec.  537.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 538--SUDANESE SANCTIONS REGULATIONS

0
11. The authority citation for part 538 continues to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 
890 (28 U.S.C. 2461 note); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120 
Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71 
FR 61369, 3 CFR, 2006 Comp., p. 244.

Subpart G--Penalties

0
12. Revise the note to paragraph (a)(1) of Sec.  538.701 to read as 
follows:


Sec.  538.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1):  As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS

0
13. The authority citation for part 539 continues to read as follows:

    Authority:  3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 
890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 
40803, 3 CFR, 1998 Comp., p. 200.

Subpart G--Penalties

0
14. Revise the note to paragraph (a)(1) of Sec.  539.701 to read as 
follows:


Sec.  539.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 541--ZIMBABWE SANCTIONS REGULATIONS

0
15. The authority citation for part 541 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13288, 68 
FR 11457, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 FR 71201, 3 CFR, 
2005 Comp., p. 206; E.O. 13469, 73 FR 43841, 3 CFR, 2008 Comp., p. 
1025.

Subpart G--Penalties

0
16. Revise the note to paragraph (a)(1) of Sec.  541.701 to read as 
follows:


Sec.  541.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 542--SYRIAN SANCTIONS REGULATIONS

0
17. The authority citation for part 542 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 
U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 
Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-

[[Page 43075]]

96, 121 Stat. 1011 (50 U.S.C. 1701 note); E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp., 
p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O. 
13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; E.O. 13573, 76 FR 
29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 52209, 3 CFR 2011 
Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 Comp., p. 243.

Subpart G--Penalties

0
18. Revise the note to paragraph (a)(1) of Sec.  542.701 to read as 
follows:


Sec.  542.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 543--COTE D'IVOIRE SANCTIONS REGULATIONS

0
19. The authority citation for part 543 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13396, 71 FR 7389, 3 CFR, 2006 Comp., p. 209.

Subpart G--Penalties

0
20. Revise the note to paragraph (a)(1) of Sec.  543.701 to read as 
follows:


Sec.  543.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS 
REGULATIONS

0
21. The authority citation for part 544 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Public Law 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 
1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 
200; E.O. 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. 170.

Subpart G--Penalties

0
22. Revise the note to paragraph (a)(1) of Sec.  544.701 to read as 
follows:


Sec.  544.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 546--DARFUR SANCTIONS REGULATIONS

0
23. The authority citation for part 546 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13400, 71 
FR 25483, 3 CFR, 2006 Comp., p. 220.

Subpart G--Penalties

0
24. Revise the note to paragraph (a)(1) of Sec.  546.701 to read as 
follows:


Sec.  546.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 547--DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS

0
25. The authority citation for part 547 continues to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13413, 71 FR 64105, 3 CFR, 2006 Comp., p. 247.

Subpart G--Penalties

0
26. Revise the note to paragraph (a)(1) of Sec.  547.701 to read as 
follows:


Sec.  547.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 548--BELARUS SANCTIONS REGULATIONS

0
27. The authority citation for part 548 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13405, 71 
FR 35485; 3 CFR, 2007 Comp., p. 231.

Subpart G--Penalties

0
28. Revise the note to paragraph (a)(1) of Sec.  548.701 to read as 
follows:


Sec.  548.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 549--LEBANON SANCTIONS REGULATIONS

0
29. The authority citation for part 549 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13441, 72 
FR 43499, 3 CFR, 2008 Comp., p. 232.

Subpart G--Penalties

0
30. Revise the note to paragraph (a)(1) of Sec.  549.701 to read as 
follows:


Sec.  549.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1):  As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

0
31. The authority citation for part 560 continues to read as follows:


[[Page 43076]]


    Authority:  3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 
note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 
112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 
Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 
1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 
332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 
62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 
CFR, 2012 Comp., p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., 
p. 314.

Subpart G--Penalties

0
32. Revise the note to paragraph (a)(1) of Sec.  560.701 to read as 
follows:


Sec.  560.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1):  As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS

0
33. The authority citation for part 561 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-
195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 
1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 
8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 
13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR 
6659, February 8, 2012; E.O. 13622, 77 FR 45897, August 2, 2012; 
E.O. 13628, 77 FR 62139, October 12, 2012.

Subpart G--Penalties

0
34. Revise the note to paragraph (a) of Sec.  561.701 to read as 
follows:


Sec.  561.701  Penalties.

    (a) * * *

    Note to paragraph (a): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 566--HIZBALLAH FINANCIAL SANCTIONS REGULATIONS

0
35. The authority citation for part 566 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-
102.

Subpart G--Penalties

0
36. Revise the note to paragraph (a) of Sec.  566.701 to read as 
follows:


Sec.  566.701  Penalties.

    (a) * * *

    Note to paragraph (a):  As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

PART 576--IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS

0
37. The authority citation for part 576 continues to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 110-96, 121 Stat. 1011; E.O. 
13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. 13315, 68 FR 
52315, 3 CFR, 2003 Comp., p. 252; E.O. 13350, 69 FR 46055, 3 CFR, 
2004 Comp., p. 196; E.O. 13364, 69 FR 70177, 3 CFR, 2004 Comp., p. 
236; E.O. 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 224.

Subpart G--Penalties

0
38. Revise the note to paragraph (a)(1) of Sec.  576.701 to read as 
follows:


Sec.  576.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 588--WESTERN BALKANS STABILIZATION REGULATIONS

0
39. The authority citation for part 588 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13219, 66 
FR 34777, 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR, 
2004 Comp. p. 229.

Subpart G--Penalties

0
40. Revise the note to paragraph (a)(1) of Sec.  588.701 to read as 
follows:


Sec.  588.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 592--ROUGH DIAMONDS CONTROL REGULATIONS

0
41. The authority citation for part 592 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); Pub. L. 108-19, 117 
Stat. 631 (19 U.S.C. 3901-3913); E.O. 13312, 68 FR 45151 3 CFR, 2003 
Comp., p. 246.

Subpart F--Penalties

0
42. Amend Sec.  592.601 by revising paragraphs (a) introductory text, 
(a)(1), and (b) to read as follows:


Sec.  592.601  Penalties.

    (a) Section 8 of the Clean Diamond Trade Act (the Act) (Pub. L. 
108-19, 117 Stat. 631, 19 U.S.C. 3901-3913) provides that:
    (1) A civil penalty not to exceed the amount set forth in section 8 
of the Act may be imposed on any person who violates, or attempts to 
violate, any order or regulation issued under the Act;

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is $12,856.

* * * * *
    (b) Adjustments to penalty amounts. (1) The civil penalties 
provided in the Act 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).
    (2) The criminal penalties provided in the Act are subject to 
increase pursuant to 18 U.S.C. 3571.
* * * * *

PART 593--FORMER LIBERIAN REGIME OF CHARLES TAYLOR SANCTIONS 
REGULATIONS

0
43. The authority citation for part 593 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat.

[[Page 43077]]

1011; E.O. 13348, 69 FR 44885, 3 CFR, 2004 Comp., p. 189.

Subpart G--Penalties

0
44. Revise the note to paragraph (a)(1) of Sec.  593.701 to read as 
follows:


Sec.  593.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of IEEPA is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
45. The authority citation for part 594 continues to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13224, 66 FR 
49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 
2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 
161; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

Subpart G--Penalties

0
46. Revise the note to paragraph (a)(1) of Sec.  594.701 to read as 
follows:


Sec.  594.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 595--TERRORISM SANCTIONS REGULATIONS

0
47. The authority citation for part 595 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011; E.O. 12947, 60 FR 5079, 3 CFR, 1995 
Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; 
E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

Subpart G--Penalties

0
48. Revise the note to paragraph (a)(1) of Sec.  595.701 to read as 
follows:


Sec.  595.701  Penalties.

    (a) * * *
    (1) * * *

    Note to paragraph (a)(1): As of August 1, 2016, the applicable 
maximum civil penalty per violation of the Act is the greater of 
$284,582 or an amount that is twice the amount of the transaction 
that is the basis of the violation with respect to which the penalty 
is imposed.

* * * * *

PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS

0
49. The authority citation for part 597 continues to read as follows:

    Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 
U.S.C. 1189, 18 U.S.C. 2339B).

Subpart G--Penalties

0
50. Revise paragraph (b) of Sec.  597.701 to read as follows:


Sec.  597.701  Penalties.

* * * * *
    (b)(1) Pursuant to 18 U.S.C. 2339B(b), except as authorized by the 
Secretary of the Treasury, any financial institution that knowingly 
fails to retain possession of or maintain control over funds in which a 
foreign terrorist organization or its agent has an interest, or to 
report the existence of such funds in accordance with these 
regulations, shall be subject to a civil penalty in an amount that is 
the greater of the amount set forth in 18 U.S.C. 2339B(b) per 
violation, or twice the amount of which the financial institution was 
required to retain possession or control.
    (2) The civil penalties provided in 18 U.S.C. 2339B(b) 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).

    Note to paragraph (b): As of August 1, 2016, the applicable 
maximum civil penalty per violation is $75,122 or twice the amount 
of which a financial institution was required to retain possession 
or control.

* * * * *

PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS

0
51. The authority citation for part 598 continues to read as follows:

    Authority: 3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b); 
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).

Subpart G--Penalties.

0
52. Amend Sec.  598.701 by revising paragraphs (a)(3) and (b) to read 
as follows:


Sec.  598.701  Penalties.

    (a) * * *
    (3) A civil penalty not to exceed the amount set forth in section 
807 of the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-
1908) per violation may be imposed by the Secretary of the Treasury on 
any person who violates any license, order, rule, or regulation issued 
in compliance with the provisions of the Foreign Narcotics Kingpin 
Designation Act.

    Note to paragraph (a)(3): As of August 1, 2016, the maximum 
civil penalty is $1,414,020 per violation.

    (b) Adjustments to penalty amounts. (1) The current civil penalty 
cap may be adjusted for inflation pursuant to the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as 
amended, 28 U.S.C. 2461 note).
    (2) The criminal penalties provided in this part are subject to 
increase pursuant to 18 U.S.C. 3571.
* * * * *

John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-15552 Filed 6-30-16; 8:45 am]
 BILLING CODE 4810-AL-P