§3110 Penalties

Summary

Foreign banks, their U.S. offices or subsidiaries, and anyone who helps them must follow the rules in this chapter. If they break those rules or ignore an order, they can be fined up to $25,000 for every day the problem continues. The Federal Reserve Board or the Comptroller of the Currency can assess and collect those fines under the rules in section 1818(i)(2), and any legal proceedings follow section 1818(h). Money collected goes to the U.S. Treasury. “Violate” covers trying to cause, join in, advise, help, or assist a breach. The Board and the Comptroller must write procedures needed to enforce these rules. If a bank has reasonable checks but makes an accidental error, or files something only slightly late, that is treated differently than a true failure to report or a false report. If a bank knowingly or with reckless disregard files false or misleading reports, the Board or Comptroller may fine up to $1,000,000 or 1 percent of the bank’s total assets (whichever is less) for each day the false report remains uncorrected. If an employee stops working for the bank, the agencies can still bring action against that person if they are served notice within 6 years after they left.