Financial Crimes Enforcement Network; Inflation Adjustment of Civil Monetary Penalties
Published Date: 1/17/2025
Rule
Summary
Starting January 17, 2025, FinCEN is raising its civil penalty amounts to keep up with inflation. This means anyone who breaks certain financial rules could face bigger fines than before. These changes help keep penalties fair and effective without any extra paperwork or delays.
Analyzed Economic Effects
12 provisions identified: 0 benefits, 12 costs, 0 mixed.
Higher Penalty for Funds-Transfer Records
FinCEN raised the maximum civil penalty for recordkeeping violations related to funds transfers from $10,000 to $26,262 effective January 17, 2025. If your business broke the recordkeeping rules, the maximum fine that can be assessed after that date is now $26,262.
Higher Penalty for Willful Recordkeeping
FinCEN raised the maximum civil penalty for willful or grossly negligent recordkeeping violations under 12 U.S.C. 1955 from $10,000 to $26,262 effective January 17, 2025. Businesses found to have willfully failed required recordkeeping after that date face the higher $26,262 maximum penalty.
Higher Penalty for Not Ending Correspondent Accounts
FinCEN raised the civil penalty for failure to terminate a correspondent relationship with a foreign bank from $10,000 to $17,765 effective January 17, 2025. Firms that do not terminate such correspondent relationships when required may face fines up to $17,765 for actions assessed after that date.
Bigger General BSA Willful Penalties
FinCEN increased the general civil penalty provision for willful Bank Secrecy Act violations: the prior range of $25,000–$100,000 is updated to $71,545–$286,184 effective January 17, 2025. Willful violations assessed after that date may be penalized up to $286,184 at the maximum.
Higher Penalty for Non-Willful Foreign Transactions
FinCEN raised the penalty for non-willful violations involving foreign financial agency transactions from $10,000 to $16,536 effective January 17, 2025. Entities assessed penalties for such non-willful transaction violations after that date face a maximum of $16,536.
Higher Penalty for Willful Foreign Transactions
FinCEN raised the penalty for willful violations involving foreign financial agency transactions from $100,000 to $165,353 effective January 17, 2025. Willful transaction violations assessed after that date may be penalized up to $165,353.
Higher Penalty for Negligent Violations
FinCEN raised the civil penalty for negligent violations by a financial institution or non-financial trade or business from $500 to $1,430 effective January 17, 2025. After that date, negligent violations can carry a maximum penalty of $1,430.
Higher Penalty for Patterns of Negligence
FinCEN raised the penalty for a pattern of negligent activity by a financial institution or non-financial trade or business from $50,000 to $111,308 effective January 17, 2025. Entities found to have a pattern of negligent activity after that date face a maximum penalty of $111,308.
Much Higher Penalty for Due-Diligence Failures
FinCEN raised the maximum penalty for violations of specified due diligence requirements, prohibitions on correspondent accounts for shell banks, and special measures from $1,000,000 to $1,776,364 effective January 17, 2025. After that date, the top penalty for these serious violations is $1,776,364.
Higher Penalty for Failing to Register as MSB
FinCEN raised the civil penalty for failure to register as a money transmitting business from $5,000 to $10,556 effective January 17, 2025. Money services businesses assessed after that date for failing to register may face fines up to $10,556.
Higher Penalty for BOI Reporting Violations
FinCEN raised the civil penalty for violations of beneficial ownership information (BOI) reporting from $500 to $606 effective January 17, 2025. Entities that violate BOI reporting requirements and are assessed penalties after that date face a maximum fine of $606 per violation.
Higher Penalty for Unauthorized BOI Use
FinCEN raised the civil penalty for unauthorized disclosure or use of beneficial ownership information from $500 to $606 effective January 17, 2025. Penalties assessed after that date for improper use or disclosure of BOI may be up to $606 per violation.
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Starting January 17, 2025, the Federal Trade Commission is raising the maximum fines it can charge for breaking certain rules to keep up with inflation. This means businesses and individuals who don’t follow the law might face slightly bigger penalties than before. These changes help keep penalties fair and effective in today’s economy.
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