12 U.S.C. § 3110 : US Code - Section 3110: Penalties

Search 12 U.S.C. § 3110 : US Code - Section 3110: Penalties

(a) Civil money penalty
(1) In general
Any foreign bank, and any office or subsidiary of a foreign
bank, that violates, and any individual who participates in a
violation of, any provision of this chapter, or any regulation
prescribed or order issued under this chapter, shall forfeit and
pay a civil penalty of not more than $25,000 for each day during
which such violation continues.
(2) Assessment procedures
Any penalty imposed under paragraph (1) may be assessed and
collected by the Board or the Comptroller of the Currency in the
manner provided in subparagraphs (E), (F), (G), (H), and (I) of
section 1818(i)(2) of this title for penalties imposed (under
such section), and any such assessments shall be subject to the
provisions of such section.
(3) Hearing procedure
Section 1818(h) of this title shall apply to any proceeding
under this section.
(4) Disbursement
All penalties collected under authority of this section shall
be deposited into the Treasury.
(5) "Violate" defined
For purposes of this section, the term "violate" includes
taking any action (alone or with others) for or toward causing,
bringing about, participating in, counseling, or aiding or
abetting a violation.
(6) Regulations
The Board and the Comptroller of the Currency shall each
prescribe regulations establishing such procedures as may be
necessary to carry out this section.
(b) Notice under this section after separation from service
The resignation, termination of employment or participation, or
separation of an institution-affiliated party (within the meaning
of section 1813(u) of this title) with respect to a foreign bank,
or any office or subsidiary of a foreign bank (including a
separation caused by the termination of a location in the United
States), shall not affect the jurisdiction or authority of the
Board or the Comptroller of the Currency to issue any notice or to
proceed under this section against any such party, if such notice
is served before the end of the 6-year period beginning on the date
such party ceased to be an institution-affiliated party with
respect to such foreign bank or such office or subsidiary of a
foreign bank (whether such date occurs on, before, or after
December 19, 1991).
(c) Penalty for failure to make reports
(1) First tier
Any foreign bank, or any office or subsidiary of a foreign
bank, that -
(A) maintains procedures reasonably adapted to avoid any
inadvertent error and, unintentionally and as a result of such
error -
(i) fails to make, submit, or publish such reports or
information as may be required under this chapter or under
regulations prescribed by the Board or the Comptroller of the
Currency under this chapter, within the period of time
specified by the agency; or
(ii) submits or publishes any false or misleading report or
information; or
(B) inadvertently transmits or publishes any report that is
minimally late,
shall be subject to a penalty of not more than $2,000 for each
day during which such failure continues or such false or
misleading information is not corrected. The foreign bank, or the
office or subsidiary of a foreign bank, shall have the burden of
proving that an error was inadvertent and that a report was
inadvertently transmitted or published late.
(2) Second tier
Any foreign bank, or any office or subsidiary of a foreign
bank, that -
(A) fails to make, submit, or publish such reports or
information as may be required under this chapter or under
regulations prescribed by the Board or the Comptroller of the
Currency pursuant to this chapter, within the time period
specified by such agency; or
(B) submits or publishes any false or misleading report or
information,
in a manner not described in paragraph (1) shall be subject to a
penalty of not more than $20,000 for each day during which such
failure continues or such false or misleading information is not
corrected.
(3) Third tier
Notwithstanding paragraph (2), if any company knowingly or with
reckless disregard for the accuracy of any information or report
described in paragraph (2) submits or publishes any false or
misleading report or information, the Board or the Comptroller of
the Currency may, in the Board's or Comptroller's discretion,
assess a penalty of not more than $1,000,000 or 1 percent of
total assets of such foreign bank, or such office or subsidiary
of a foreign bank, whichever is less, per day for each day during
which such failure continues or such false or misleading
information is not corrected.
(4) Assessment of penalties
Any penalty imposed under paragraph (1), (2), or (3) shall be
assessed and collected by the Board or the Comptroller of the
Currency in the manner provided in subsection (a)(2) of this
section (for penalties imposed under such subsection) and any
such assessment (including the determination of the amount of the
penalty) shall be subject to the provisions of such subsection.
(5) Hearing procedure
Section 1818(h) of this title shall apply to any proceeding
under this subsection.