§ 3110. — 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: 12USC3110]
TITLE 12--BANKS AND BANKING
CHAPTER 32--FOREIGN BANK PARTICIPATION IN DOMESTIC MARKETS
Sec. 3110. Penalties
(a) Civil money penalty
(1) In general
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 chapter, or any regulation
prescribed or order issued under this chapter, shall forfeit and pay
a civil penalty of not more than $25,000 for each day during which
such violation continues.
(2) Assessment procedures
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 1818(i)(2) of this title for penalties imposed (under such
section), and any such assessments shall be subject to the
provisions of such section.
(3) Hearing procedure
Section 1818(h) of this title shall apply to any proceeding
under this section.
(4) Disbursement
All penalties collected under authority of this section shall be
deposited into the Treasury.
(5) ``Violate'' defined
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) Regulations
The Board and the Comptroller of the Currency shall each
prescribe regulations establishing such procedures as may be
necessary to carry out this section.
(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 1813(u) of this title) 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 December 19, 1991).
(c) Penalty for failure to make reports
(1) First tier
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 chapter or under
regulations prescribed by the Board or the Comptroller of
the Currency under this chapter, 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.
(2) Second tier
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 chapter or under
regulations prescribed by the Board or the Comptroller of the
Currency pursuant to this chapter, 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) 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 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.
(4) Assessment of penalties
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) 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 procedure
Section 1818(h) of this title shall apply to any proceeding
under this subsection.
(Pub. L. 95-369, Sec. 16, as added Pub. L. 102-242, title II, Sec. 208,
Dec. 19, 1991, 105 Stat. 2295.)
References in Text
For definition of ``this chapter'', referred to in subsecs. (a)(1)
and (c)(1)(A)(i), (2)(A), see References in Text note set out under
section 3101 of this title.
