83 FR 11876 - Inflation Adjustment of Civil Monetary Penalties

DEPARTMENT OF THE TREASURY
Office of the Secretary of the Treasury
Office of Foreign Assets Control

Federal Register Volume 83, Issue 53 (March 19, 2018)

The Department of the Treasury (``Department'' or ``Treasury'') publishes this 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''). This rule adjusts CMPs within the jurisdiction of certain components of the Department to the maximum amount required by the Act.

[Federal Register Volume 83, Number 53 (Monday, March 19, 2018)]
[Rules and Regulations]
[Pages 11876-11881]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05550]


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DEPARTMENT OF THE TREASURY

Office of the Secretary of the Treasury

31 CFR Part 50

Office of Foreign Assets Control

31 CFR Parts 501, 535, 536, 538, 539, 541, 542, 544, 546, 547, 548, 
549, 560, 561, 566, 576, 584, 588, 592, 594, 595, 597, and 598

Financial Crimes Enforcement Network

31 CFR Part 1010


Inflation Adjustment of Civil Monetary Penalties

AGENCY: Departmental Offices, Financial Crimes Enforcement Network, and 
Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury (``Department'' or 
``Treasury'') publishes this 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''). This rule adjusts 
CMPs within the jurisdiction of certain components of the Department to 
the maximum amount required by the Act.

DATES: Effective March 19, 2018.

FOR FURTHER INFORMATION CONTACT: For information regarding the 
Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior 
Insurance Regulatory Policy Analyst, Federal Insurance Office, Room 
1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220, at (202) 622-2922 (not a toll-free number), Kevin 
Meehan, Senior Insurance Regulatory Policy Analyst, Federal Insurance 
Office, at (202) 622-7009 (not a toll-free number), or Lindsey Baldwin, 
Senior Policy Analyst, Federal Insurance Office, at (202) 622-3220 (not 
a toll free number). Persons who have difficulty hearing or speaking 
may access these numbers via TTY by calling the toll-free Federal Relay 
Service at (800) 877-8339.
    For information regarding Financial Crimes Enforcement Network's 
CMPs, contact the FinCEN Resource Center at (800) 767-2825 or email 
[email protected].
    For information regarding the Office of Foreign Assets Control's 
CMPs, contact the Assistant Director for Enforcement, tel.: 202-622-
2430;

[[Page 11877]]

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: 

I. Background

    In order to improve the effectiveness of CMPs and to maintain their 
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act 
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires 
Federal agencies to adjust each CMP provided by law within the 
jurisdiction of the agency. The 2015 Act requires agencies to adjust 
the level of CMPs with an initial ``catch-up'' adjustment through an 
interim final rulemaking and to make subsequent annual adjustments for 
inflation, without needing to provide notice and the opportunity for 
public comment required by 5 U.S.C. 553. The Department's initial 
catch-up adjustment interim final rules were published on June 30, 2016 
(FinCEN) (81 FR 42503), July 1, 2016 (OFAC) (81 FR 43070), and December 
7, 2016 (Departmental Offices) (81 FR 88600). The Department's 2017 
annual adjustment was published on February 10, 2017 (82 FR 10434). The 
2015 Act provides that any increase in a CMP shall apply to CMPs that 
are assessed after the date the increase takes effect, regardless of 
whether the underlying violation predated such increase.\1\
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    \1\ However, the increased CMPs apply only with respect to 
underlying violations occurring after the date of enactment of the 
2015 Act, i.e., after November 2, 2015.
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II. Method of Calculation

    The method of calculating CMP adjustments applied in this final 
rule is required by the 2015 Act. Under the 2015 Act and the Office of 
Management and Budget guidance required by the 2015 Act, annual 
inflation adjustments subsequent to the initial catch-up adjustment are 
to be based on the percent change between the Consumer Price Index for 
all Urban Consumers (``CPI-U'') for the October preceding the date of 
the adjustment and the prior year's October CPI-U. As set forth in 
Office of Management and Budget Memorandum M-18-03 of December 15, 
2017, the adjustment multiplier for 2018 is 1.02041. In order to 
complete the 2018 annual adjustment, each current CMP is multiplied by 
the 2018 adjustment multiplier. Under the 2015 Act, any increase in CMP 
must be rounded to the nearest multiple of $1.

Procedural Matters

1. Administrative Procedure Act
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to 
make annual adjustments for inflation to CMPs, without needing to 
provide notice and the opportunity for public comment required by 5 
U.S.C. 553. Additionally, the methodology used, effective 2017, for 
adjusting CMPs for inflation is provided by statute, with no discretion 
provided to agencies regarding the substance of the adjustments for 
inflation to CMPs. The Department is charged only with performing 
ministerial computations to determine the dollar amount of adjustments 
for inflation to CMPs. Accordingly, prior public notice and an 
opportunity for public comment and a delayed effective date are not 
required for this rule.
2. Regulatory Flexibility Act
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.

3. Executive Order 12866

    This rule is not a significant regulatory action as defined in 
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no new or 
revised recordkeeping or reporting requirements.

List of Subjects

31 CFR Part 50

    Insurance, Terrorism.

31 CFR Parts 501, 535, 536, 538, 539, 541, 542, 544, 546, 547, 548, 
549, 560, 561, 566, 576, 584, 588, 592, 594, 595, 597, and 598

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.

31 CFR Part 1010

    Authority delegations (Government agencies), Banks and banking, 
Currency, Investigations, Law enforcement, Reporting and recordkeeping 
requirements.

Authority and Issuance

    For the reasons set forth in the preamble, part 50, chapter V, and 
part 1010 of title 31 of the Code of Federal Regulations are amended as 
follows:

PART 50--TERRORISM RISK INSURANCE PROGRAM

0
1. The authority citation for part 50 continues to read as follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-
297, 116 Stat. 2322, as amended by Pub. L. 109-144, 119 Stat. 2660, 
Pub. L. 110-160, 121 Stat. 1839 and Pub. L. 114-1, 129 Stat. 3 (15 
U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601, Title VII (28 
U.S.C. 2461 note).

0
2. Amend Sec.  50.83 by revising paragraph (a) to read as follows:


Sec.  50.83   Adjustment of civil monetary penalty amount.

    (a) Inflation adjustment. Any penalty under the Act and these 
regulations may not exceed the greater of $1,360,525 and, in the case 
of any failure to pay, charge, collect or remit amounts in accordance 
with the Act or these regulations such amount in dispute.
* * * * *

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
3. 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.

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


Sec.  501.701  [Amended]

0
4. Amend Sec.  501.701 as follows:
0
a. In the note to paragraph (a)(1), remove ``As of January 15, 2017,'' 
; and remove ``$85,236'' and add in its place ``$86,976''.
0
b. In paragraph (a)(3), remove ``$85,236'' and add in its place 
``$86,976''.

0
5. Amend appendix A to part 501 as follows:
0
a. In section V.B.2.a.i., remove ``$144,619'' and add in its place 
``$147,571'', and remove ``$289,238'' and add in its place 
``$295,141''.
0
b. In section V.B.2.a.ii., remove ``$289,238'' in all three locations 
where it appears, and add in its place in all three locations 
``$295,141''.

[[Page 11878]]

0
c. Revise the note to paragraph (a) of section V.B.2.a. to read as 
follows:

Appendix A to Part 501--Economic Sanctions Enforcement Guidelines

* * * * *
    B. * * *
    2. * * *
    a. * * *
    Note to paragraph (a): 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 $295,141 or twice the amount of the underlying 
transaction; Trading with the Enemy Act (TWEA)--$86,976; Foreign 
Narcotics Kingpin Designation Act (FNKDA)--$1,466,485; Antiterrorism 
and Effective Death Penalty Act of 1996 (AEDPA)--greater of $77,909 
or twice the amount of which a financial institution was required to 
retain possession or control; and Clean Diamond Trade Act (CDTA)--
$13,333. 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] TR19MR18.001

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

0
6. 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


Sec.  535.701   [Amended]

0
7. In the note to paragraph (a)(1) in Sec.  535.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

0
8. 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


Sec.  536.701   [Amended]

0
9. In the note to paragraph (a)(1) in Sec.  536.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 538--SUDANESE SANCTIONS REGULATIONS

0
10. 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.

[[Page 11879]]

Subpart G--Penalties


Sec.  538.701   [Amended]

0
11. In the note to paragraph (a)(1) in Sec.  538.701 , remove ``As of 
January 15, 2017'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS

0
12. 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


Sec.  539.701   [Amended]

0
13. In the note to paragraph (a)(1) in Sec.  539.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 541--ZIMBABWE SANCTIONS REGULATIONS

0
14. 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


Sec.  541.701   [Amended]

0
15. In the note to paragraph (a)(1) in Sec.  541.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 542--SYRIAN SANCTIONS REGULATIONS

0
16. 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. 110-96, 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


Sec.  542.701   [Amended]

0
17. In the note to paragraph (a)(1) in Sec.  542.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS 
REGULATIONS

0
18. 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


Sec.  544.701  [Amended]

0
19. In the note to paragraph (a)(1) in Sec.  544.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 546--DARFUR SANCTIONS REGULATIONS

0
20. 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


Sec.  546.701  [Amended]

0
21. In the note to paragraph (a)(1) in Sec.  546.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 547--DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS

0
22. 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


Sec.  547.701  [Amended]

0
23. In the note to paragraph (a)(1) in Sec.  547.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 548--BELARUS SANCTIONS REGULATIONS

0
24. 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


Sec.  548.701  [Amended]

0
25. In the note to paragraph (a)(1) in Sec.  548.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 549--LEBANON SANCTIONS REGULATIONS

0
26. 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


Sec.  549.701  [Amended]

0
27. In the note to paragraph (a)(1) in Sec.  549.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

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

    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.

[[Page 11880]]

215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., p. 314.

Subpart G--Penalties


Sec.  560.701  [Amended]

0
29. In the note to paragraph (a)(1) in Sec.  560.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS

0
30. 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


Sec.  561.701  [Amended]

0
31. In the note to paragraph (a) in Sec.  561.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 566--HIZBALLAH FINANCIAL SANCTIONS REGULATIONS

0
32. 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


Sec.  566.701  [Amended]

0
33. In the note to paragraph (a) in Sec.  566.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 576--IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS

0
34. 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; E.O. 13668, 
79 FR 31019, 3 CFR, 2014 Comp., p. 248.

Subpart G--Penalties

0
35. In the note to paragraph (a)(1) inSec.  576.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 584--MAGNITSKY ACT SANCTIONS REGULATIONS

0
36. The authority citation for part 584 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. 112-
208, 126 Stat. 1502, (22 U.S.C. 5811 note).


Sec.  584.701   [Amended]

0
37. In the note to paragraph (a)(1) in Sec.  584.701, remove ``As of 
December 21, 2017,''; and remove ``$239,238'' and add in its place 
``$295,141''.

PART 588--WESTERN BALKANS STABILIZATION REGULATIONS

0
38. 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


Sec.  588.701   [Amended]

0
39. In the note to paragraph (a)(1) in Sec.  588.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 592--ROUGH DIAMONDS CONTROL REGULATIONS

0
40. 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


Sec.  592.601   [Amended]

0
41. In the note to paragraph (a)(1) in Sec.  592.601, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$13,066'' and add in its place ``$13,333''.

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
42. 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; Pub. L. 115-44, 
131 Stat. 886 (22 U.S.C. 9401 et seq.), 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


Sec.  594.701   [Amended]

0
43. In the note to paragraph (a)(1) in Sec.  594.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 595--TERRORISM SANCTIONS REGULATIONS

0
44. 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


Sec.  595.701   [Amended]

0
45. In the note to paragraph (a)(1) in Sec.  595.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$289,238'' and add in its place ``$295,141''.

PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS

0
46. 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


Sec.  597.701   [Amended]

0
47. In the note to paragraph (b) in Sec.  597.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$76,351'' and add in its place ``$77,909''.

[[Page 11881]]

PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS

0
48. 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


Sec.  598.701   [Amended]

0
49. In the note to paragraph (a)(3) in Sec.  598.701, remove ``As of 
January 15, 2017, the'' and add in its place ``The'', and remove 
``$1,437,153'' and add in its place ``$1,466,485''.

PART 1010--GENERAL PROVISIONS

0
50. The authority citation for part 1010 continues to read as follows:

    Authority:  12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 
and 5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701. Pub. L. 114-74, 129 Stat. 599.

0
51. Amend Sec.  1010.821 by revising Table 1 of Sec.  1010.821 to read 
as follows:


Sec.  1010.821   Penalty adjustment and table.

* * * * *
    (b) * * *

                                                  Table 1 of Sec.   1010.821--Penalty Adjustment Table
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          New maximum  penalty
                                                                                                          amounts or  range of     New maximum  penalty
                                                                                                          minimum and  maximum     amounts or  range of
            U.S. Code  citation                   Civil monetary penalty          Penalties as  last      penalty  amounts for    minimum  and  maximum
                                                       description               amended  by statute      penalties  assessed      penalty  amounts for
                                                                                                          after  8/1/2016  but     penalties  assessed
                                                                                                           before  1/16/2017         after  1/15/2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
12 U.S.C. 1829b(j)........................  Relating to Recordkeeping                          $10,000                  $20,111                  $20,521
                                             Violations For Funds Transfers.
12 U.S.C. 1955............................  Willful or Grossly Negligent                        10,000                   20,111                   20,521
                                             Recordkeeping Violations.
31 U.S.C. 5318(k)(3)(C)...................  Failure to Terminate                                10,000                   13,603                   13,881
                                             Correspondent Relationship with
                                             Foreign Bank.
31 U.S.C. 5321(a)(1)......................  General Civil Penalty Provision             25,000-100,000           54,789-219,156           55,907-223,629
                                             for Willful Violations of Bank
                                             Secrecy Act Requirements.
31 U.S.C. 5321(a)(5)(B)(i)................  Foreign Financial Agency                            10,000                   12,663                   12,921
                                             Transaction--Non-Willful
                                             Violation of Transaction.
31 U.S.C. 5321(a)(5)(C)...................  Foreign Financial Agency                           100,000                  126,626                  129,210
                                             Transaction--Willful Violation
                                             of Transaction.
31 U.S.C. 5321(a)(6)(A)...................  Negligent Violation by Financial                       500                    1,096                    1,118
                                             Institution or Non-Financial
                                             Trade or Business.
31 U.S.C. 5321(a)(6)(B)...................  Pattern of Negligent Activity by                    50,000                   85,236                   86,976
                                             Financial Institution or Non-
                                             Financial Trade or Business.
31 U.S.C. 5321(a)(7)......................  Violation of Certain Due                         1,000,000                1,360,317                1,388,081
                                             Diligence Requirements,
                                             Prohibition on Correspondent
                                             Accounts for Shell Banks, and
                                             Special Measures.
31 U.S.C. 5330(e).........................  Civil Penalty for Failure to                         5,000                    8,084                    8,249
                                             Register as Money Transmitting
                                             Business.
--------------------------------------------------------------------------------------------------------------------------------------------------------


Ryan Brady,
Executive Secretary.
[FR Doc. 2018-05550 Filed 3-16-18; 8:45 am]
 BILLING CODE 4810-35-P