Criminal penalty
Civil money penalty
Penalty
Any company which violates, and any individual who participates in a violation of, any provision of this chapter, or any regulation or order issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation continues.
Assessment; etc.
section 1818(i)(2) of this titleAny penalty imposed under paragraph (1) may be assessed and collected by the Board in the manner provided in subparagraphs (E), (F), (G), and (I) of for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section.
Hearing
Section 1818(h) of this titleThe company or other person against whom any penalty is assessed under this subsection shall be afforded an agency hearing if such association or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. shall apply to any proceeding under this subsection.
Disbursement
All penalties collected under authority of this subsection shall be deposited into the Treasury.
“Violate” defined
For purposes of this section, the term “violate” includes any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.
Regulations
The Board shall prescribe regulations establishing such procedures as may be necessary to carry out this subsection.
Notice under this section after separation from service
section 1813(u) of this titleThe resignation, termination of employment or participation, or separation of an institution-affiliated party (within the meaning of ) with respect to a bank holding company (including a separation caused by the deregistration of such a company) shall not affect the jurisdiction and authority of the Board to issue any notice and 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 such a party with respect to such holding company (whether such date occurs before, on, or after ).
Penalty for failure to make reports
First tier
Second tier
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 may, in its discretion, assess a penalty of not more than $1,000,000 or 1 percent of total assets of such company, whichever is less, per day for each day during which such failure continues or such false or misleading information is not corrected.
Assessment; etc.
Any penalty imposed under paragraph (1), (2), or (3) shall be assessed and collected by the Board in the manner provided in subsection (b) (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.
Hearing
Section 1818(h) of this titleAny company against which any penalty is assessed under this subsection shall be afforded an agency hearing if such company submits a request for such hearing within 20 days after the issuance of the notice of assessment. shall apply to any proceeding under this subsection.
May 9, 1956, ch. 240, § 8 70 Stat. 138 Pub. L. 95–630, title I, § 106(a)92 Stat. 3647 Pub. L. 97–320, title IV, § 424(a)96 Stat. 1522 Pub. L. 101–73, title IX103 Stat. 461 (, ; , , ; , (d)(4), , , 1523; , §§ 905(i), 907(j), 911(e), , , 475, 481.)
Editorial Notes
Amendments
Pub. L. 101–73, § 907(j)(1)1989—Subsec. (a). , substituted heading and pars. (1) and (2) for first two sentences which read as follows: “Any company which willfully violates any provision of this chapter, or any regulation or order issued by the Board pursuant thereto, shall upon conviction be fined not more than $1,000 for each day during which the violation continues. Any individual who willfully participates in a violation of any provision of this chapter shall upon conviction be fined not more than $10,000 or imprisoned not more than one year, or both.”
Pub. L. 101–73, § 907(j)(2)Subsec. (b). , added headings and amended text generally. Prior to amendment, subsec. (b) read as follows:
Provided“(1) Any company which violates or any individual who participates in a violation of any provision of this chapter, or any regulation or order issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $1,000 per day for each day during which such violation continues: , That the Board may, in its discretion, compromise, modify, or remit any civil money penalty which is subject to imposition or has been imposed under authority of this subsection. The penalty may be assessed and collected by the Board by written notice. As used in the section, the term ‘violates’ includes without any limitation any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.
“(2) In determining the amount of the penalty the Board shall take into account the appropriateness of the penalty with respect to the size of financial resources and good faith of the company or person charged, the gravity of the violation, the history of previous violations, and such other matters as justice may require.
section 554 of title 5section 1848 of this title“(3) The company or person assessed shall be afforded an opportunity for agency hearing, upon request made within ten days after issuance of the notice of assessment. In such hearing all issues shall be determined on the record pursuant to . The agency determination shall be made by final order which may be reviewed only as provided in . If no hearing is requested as herein provided, the assessment shall constitute a final and unappealable order.
“(4) If any company or person fails to pay an assessment after it has become a final and unappealable order, or after the court of appeals has entered final judgment in favor of the Board, the Board shall refer the matter to the Attorney General, who shall recover the amount assessed by action in the appropriate United States district court. In such action the validity and appropriateness of the final order imposing the penalty shall not be subject to review.
“(5) The Board shall promulgate regulations establishing procedures necessary to implement this subsection.
“(6) All penalties collected under authority of this subsection shall be covered into the Treasury of the United States.”
Pub. L. 101–73, § 905(i)Subsec. (c). , added subsec. (c).
Pub. L. 101–73, § 911(e)Subsec. (d). , added subsec. (d).
Pub. L. 97–3201982—Subsec. (b)(1). inserted proviso giving the Board discretionary authority to compromise, etc., any civil money penalty imposed under this subsection, and substituted “may be assessed” for “shall be assessed”.
Pub. L. 95–6301978— designated existing provisions as subsec. (a) and added subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
section 907(j) of Pub. L. 101–73lPub. L. 101–73section 93 of this titleAmendment by applicable to conduct engaged in after , except that increased maximum penalties of $5,000 and $25,000 may apply to conduct engaged in before such date if such conduct is not already subject to a notice issued by the appropriate agency and occurred after completion of the last report of the examination of the institution by the appropriate agency occurring before , see section 907() of , set out as a note under .
section 911(e) of Pub. L. 101–73section 911(i) of Pub. L. 101–73section 161 of this titleAmendment by applicable with respect to reports filed or required to be filed after , see , set out as a note under .
Effective Date of 1978 Amendment
Pub. L. 95–630section 109 of Pub. L. 95–630section 93 of this titleAmendment by , relating to imposition of civil penalties, applicable to violations occurring or continuing after , see , set out as a note under .