(a) Civil money penalty.
(1) 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 Act, or any
regulation prescribed or order issued under this Act, shall forfeit
and pay a civil penalty of not more than $25,000 for each day during
which such violation continues.
(2) 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 8(i)(2) of the Federal Deposit Insurance
Act for penalties imposed (under such section), and any such assessments
shall be subject to the provisions of such section.
(3) Section 8(h) of the Federal Deposit
Insurance Act shall apply to any proceeding under this section.
(4) All penalties collected
under authority of this section shall be deposited into the Treasury.
(5) 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) The Board and the Comptroller of the
Currency shall each prescribe regulations establishing such procedures
as may be necessary to carry out this section.
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(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 3(u) of the Federal Deposit Insurance Act) 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 the date of the enactment of
the Foreign Bank Supervision Enhancement Act of 1991).
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(c) Penalty for failure to make reports.
(1) 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 Act or under regulations prescribed by the Board or the
Comptroller of the Currency under this Act, 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.
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(2) 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
Act or under regulations prescribed by the Board or the Comptroller
of the Currency pursuant to this Act, 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) 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.
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(4) 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) (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)
Section 8(h) of the Federal Deposit Insurance Act shall apply to any
proceeding under this subsection.
[12 USC 3110. As added
by act of Dec. 19, 1991 (105 Stat. 2295).]
