Special Focus Regulatory Spotlight

The Board of Governors of the Federal Reserve System (FRB) issued a final rule to amend its rules of practice and procedure to adjust the amount of each civil money penalty (CMP) provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act. FRB will apply the adjusted CMPs to any penalties assessed on or after 01/11/2023, whose associated violations occurred on or after 11/02/2015. Penalties assessed for violations occurring prior to 11/02/2015, will be subject to the amounts set in FRB’s 2012 adjustment. The final rule is effective 01/11/2023. The final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-01-11/pdf/2023-00327.pdf Federal Register, Vol. 88, No. 7, 01/11/2023, 1497-1499.

The Financial Crimes Enforcement Network (FinCEN) issued a final rule to reflect inflation adjustments to its civil monetary penalties (CMPs) as mandated by the Federal Civil Penalties Inflation Adjustment Act, as amended. The final rule adjusts certain maximum CMPs within the jurisdiction of FinCEN to the amounts required by the Act. See the final rule for the specific amounts. FinCEN issued a correction to the final rule. The final rule is effective 01/19/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-01-19/pdf/2023-00943.pdf Federal Register, Vol. 88, No. 12, 01/19/2023, 3311-3313. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-202302-03/pdf/C1-2023-00943.pdf Federal Register, Vol. 88, No. 23, 02/03/2023, 7357.

The Office of Foreign Assets Control (OFAC) issued a final rule to adjust certain civil monetary penalties (CMPs) for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act. See the final rule for the list of specific adjustments. The final rule is effective 01/13/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-01-13/pdf/202300593.pdf Federal Register, Vol. 88, No. 9, 01/13/2023, 2229-2234.

The Farm Credit Administration (FCA) issued a final rule to implement inflation adjustments to civil money penalties (CMPs) that FCA may impose or enforce pursuant to the Farm Credit Act, as amended and pursuant to the Flood Disaster Protection Act, as amended by the National Flood Insurance Reform Act, and further amended by the Biggert-Waters Flood Insurance Reform Act. See the final rule for the specific adjustments and new maximum CMP amounts. The final rule is effective 01/15/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-01-13/ pdf/2023-00715.pdf Federal Register, Vol. 88, No. 9, 01/13/2023, 2197-2199.