Document
Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Penalties
FinCEN is publishing this final rule to reflect inflation adjustments to its civil monetary penalties as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990...
SUPPLEMENTARY INFORMATION:
I. Background
To improve the effectiveness of civil monetary penalties (CMPs) and to maintain their deterrent effect, the Federal Civil Penalties Inflation Adjustment Act of 1990 (the “Act”) []
requires Federal agencies to adjust for inflation each CMP provided by law within the jurisdiction of the agency. Under the Act, agencies are required to adjust CMPs annually and publish these adjustments in the
Federal Register
.[]
Agencies are to make the adjustments without engaging in notice-and-comment rulemaking, and these adjustments may be immediately effective upon publication.[]
The 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.[]
FinCEN publishes CMP inflation adjustments in its regulations at 31 CFR 1010.821.
II. Method of Calculation
The method of calculating CMP adjustments applied in this final rule is determined by the Act. Under the Act and Office of Management and Budget (OMB) guidance, annual inflation adjustments 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 OMB Memorandum M-25-02 of December 17, 2024, the adjustment multiplier for 2025 is 1.02598. To complete the 2025 annual adjustment, each current FinCEN CMP is multiplied by the 2025 adjustment multiplier. Under the Act, any increase in CMP must be rounded to the nearest multiple of $1.[]
Procedural Matters
1. Administrative Procedure Act
Section 4(b) of the Act requires agencies, beginning in 2017, to make annual adjustments for inflation to CMPs notwithstanding the rulemaking requirements of 5 U.S.C. 553. Additionally, the methodology used 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. 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.
This rule is not a significant regulatory action as defined in section 3(f) of Executive Order 12866, as amended.
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.
- Administrative practice and procedure
- Aliens
- Authority delegations (Government agencies)
- Banks, banking
- Brokers
- Business and industry
- Citizenship and naturalization
- Commodity futures
- Currency
- Electronic filing
- Federal savings associations
- Federal-States relations
- Foreign persons
- Holding companies
- Indians
- Indians—law
- Indians—tribal government
- Insurance companies
- Investigations
- Investment advisers
- Investment companies
- Law enforcement
- Penalties
- Reporting and
recordkeeping requirements
- Small businesses
- Securities
- Terrorism
- Time
Authority and Issuance
For the reasons set forth in the preamble, part 1010 of chapter X of title 31 of the Code of Federal Regulations is amended as follows:
PART 1010—GENERAL PROVISIONS
1. The authority citation for part 1010 continues to read as follows:
12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314, 5316-5336; title III, sec. 314 Pub. L. 107-56, 115 Stat. 307; sec. 2006, Pub. L. 114-41, 129 Stat. 457; sec. 701 Pub. L. 114-74, 129 Stat. 599; sec. 6403, Pub. L. 116-283, 134 Stat. 3388.
2. Amend § 1010.821 by revising table 1 to paragraph (b) to read as follows:
Penalty adjustment and table.
* * * * *
(b) * * *
Table 1 to § 1010.821—Penalty Adjustment Table
| U.S. Code citation |
Civil monetary penalty description |
Penalties as last
amended by statute |
Maximum penalty
amounts or range of
minimum and maximum
penalty amounts for
penalties assessed on or
after January 17, 2025 |
| 12 U.S.C. 1829b(j) |
Relating to Recordkeeping Violations for Funds Transfers |
$10,000 |
$26,262 |
| 12 U.S.C. 1955 |
Willful or Grossly Negligent Recordkeeping Violations |
10,000 |
26,262 |
| 31 U.S.C. 5318(k)(3)(C) |
Failure to Terminate Correspondent Relationship with Foreign Bank |
10,000 |
17,765 |
| 31 U.S.C. 5321(a)(1) |
General Civil Penalty Provision for Willful Violations of Bank Secrecy Act Requirements |
25,000
−100,000 |
71,545
−286,184 |
| 31 U.S.C. 5321(a)(5)(B)(i) |
Foreign Financial Agency Transaction—Non-Willful Violation of Transaction |
10,000 |
16,536 |
| 31 U.S.C. 5321(a)(5)(C)(i)(I) |
Foreign Financial Agency Transaction—Willful Violation of Transaction |
100,000 |
165,353 |
| 31 U.S.C. 5321(a)(6)(A) |
Negligent Violation by Financial Institution or Non-Financial Trade or Business |
500 |
1,430 |
| 31 U.S.C. 5321(a)(6)(B) |
Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business |
50,000 |
111,308 |
| 31 U.S.C. 5321(a)(7) |
Violation of Certain Due Diligence Requirements, Prohibition on Correspondent Accounts for Shell Banks, and Special Measures |
1,000,000 |
1,776,364 |
| 31 U.S.C. 5330(e) |
Civil Penalty for Failure to Register as Money Transmitting Business |
5,000 |
10,556 |
| 31 U.S.C. 5336(h)(3)(A)(i) |
Civil Penalty for Beneficial Ownership Information Reporting Violation |
500 |
606 |
| 31 U.S.C. 5336(h)(3)(B)(i) |
Civil Penalty for Unauthorized Disclosure or Use of Beneficial Ownership Information |
500 |
606 |
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.