§3110 Penalties

Summary

Foreign banks, their U.S. offices or subsidiaries, and any person who helps break the rules must pay civil fines up to $25,000 for each day the violation keeps going. The Federal Reserve Board or the Comptroller of the Currency will collect those fines using the procedures in section 1818(i)(2), and the rules in section 1818(h) apply to the cases. Money from fines goes to the U.S. Treasury. To “violate” means to cause, take part in, advise, help, or assist in the wrongdoing. The Board and the Comptroller must make rules to carry out these penalties. If an employee or other institution-affiliated person leaves, the Board or the Comptroller can still start action against them if notice is served within 6 years after they stopped being affiliated; that 6-year rule applies whether that date was on, before, or after December 19, 1991. If a bank has reasonable procedures and makes an accidental error or files a slightly late report, that is treated differently. But 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) per day until corrected. These fines are also collected under the same procedures and subject to section 1818(h).