§ 1847. — Penalties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1847]
TITLE 12--BANKS AND BANKING
CHAPTER 17--BANK HOLDING COMPANIES
Sec. 1847. Penalties
(a) Criminal penalty
(1) Whoever knowingly violates any provision of this chapter or,
being a company, violates any regulation or order issued by the
Board under this chapter, shall be imprisoned not more than 1 year,
fined not more than $100,000 per day for each day during which the
violation continues, or both.
(2) Whoever, with the intent to deceive, defraud, or profit
significantly, knowingly violates any provision of this chapter
shall be imprisoned not more than 5 years, fined not more than
$1,000,000 per day for each day during which the violation
continues, or both.
Every officer, director, agent, and employee of a bank holding company
shall be subject to the same penalties for false entries in any book,
report, or statement of such bank holding company as are applicable to
officers, directors, agents, and employees of member banks for false
entries in any books, reports, or statements of member banks under
section 1005 of title 18.
(b) Civil money penalty
(1) 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.
(2) Assessment; etc.
Any 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 section 1818(i)(2) of this title for penalties
imposed (under such section) and any such assessment shall be
subject to the provisions of such section.
(3) Hearing
The 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. Section 1818(h)
of this title shall apply to any proceeding under this subsection.
(4) Disbursement
All penalties collected under authority of this subsection shall
be deposited into the Treasury.
(5) ``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.
(6) Regulations
The Board shall prescribe regulations establishing such
procedures as may be necessary to carry out this subsection.
(c) 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 1813(u) of this title) 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 August 9,
1989).
(d) Penalty for failure to make reports
(1) First tier
Any company which--
(A) maintains procedures reasonably adapted to avoid any
inadvertent error and, unintentionally and as a result of such
an error--
(i) fails to make, submit, or publish such reports or
information as may be required under this chapter or under
regulations prescribed by the Board pursuant to this
chapter, within the period of time specified by the Board;
or
(ii) submits or publishes any false or misleading report
or information; or
(B) inadvertently transmits or publishes any report which 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 company shall have the burden of
proving that an error was inadvertent and that a report was
inadvertently transmitted or published late.
(2) Second tier
Any company which--
(A) fails to make, submit, or publish such reports or
information as may be required under this chapter or under
regulations prescribed by the Board pursuant to this chapter,
within the period of time specified by the Board; 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) 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.
(4) 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) of this section (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) Hearing
Any 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. Section 1818(h) of this title shall
apply to any proceeding under this subsection.
(May 9, 1956, ch. 240, Sec. 8, 70 Stat. 138; Pub. L. 95-630, title I,
Sec. 106(a), Nov. 10, 1978, 92 Stat. 3647; Pub. L. 97-320, title IV,
Sec. 424(a), (d)(4), Oct. 15, 1982, 96 Stat. 1522, 1523; Pub. L. 101-73,
title IX, Secs. 905(i), 907(j), 911(e), Aug. 9, 1989, 103 Stat. 461,
475, 481.)
Amendments
1989--Subsec. (a). Pub. L. 101-73, Sec. 907(j)(1), 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.''
Subsec. (b). Pub. L. 101-73, Sec. 907(j)(2), added headings and
amended text generally. Prior to amendment, subsec. (b) read as follows:
``(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: Provided, 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.
``(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 section 554 of title 5. The
agency determination shall be made by final order which may be reviewed
only as provided in section 1848 of this title. 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.''
Subsec. (c). Pub. L. 101-73, Sec. 905(i), added subsec. (c).
Subsec. (d). Pub. L. 101-73, Sec. 911(e), added subsec. (d).
1982--Subsec. (b)(1). Pub. L. 97-320 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''.
1978--Pub. L. 95-630 designated existing provisions as subsec. (a)
and added subsec. (b).
Effective Date of 1989 Amendment
Amendment by section 907(j) of Pub. L. 101-73 applicable to conduct
engaged in after Aug. 9, 1989, 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 Aug. 9, 1989, see section 907(l) of Pub. L. 101-73, set out as a
note under section 93 of this title.
Amendment by section 911(e) of Pub. L. 101-73 applicable with
respect to reports filed or required to be filed after Aug. 9, 1989, see
section 911(i) of Pub. L. 101-73, set out as a note under section 161 of
this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630, relating to imposition of civil
penalties, applicable to violations occurring or continuing after Nov.
10, 1978, see section 109 of Pub. L. 95-630, set out as a note under
section 93 of this title.
Section Referred to in Other Sections
This section is referred to in title 15 sections 78o-5, 78q.
