Title 12 — Banks and Banking
Chapter 32 — Foreign Bank Participation in Domestic Markets
§ 3110. Penalties
Statutory text
Civil money penalty
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.
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.
Hearing procedure
Section 1818(h) of this title shall apply to any proceeding under this section.
Disbursement
All penalties collected under authority of this section shall be deposited into the Treasury.
“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.
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.
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 ).
Penalty for failure to make reports
First tier
Any foreign bank, or any office or subsidiary of a foreign bank, that—
maintains procedures reasonably adapted to avoid any inadvertent error and, unintentionally and as a result of such error—
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
submits or publishes any false or misleading report or information; or
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.
Second tier
Any foreign bank, or any office or subsidiary of a foreign bank, that—
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
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.
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.
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) (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.
Hearing procedure
Section 1818(h) of this title shall apply to any proceeding under this subsection.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
International Banking Act of 1978
Pub. L. 95–369 § 16 · 92 Stat. 607
Enacted · 12 U.S.C. § 3110
(Pub. L. 95–369, § 16, as added Pub. L. 102–242, title II, § 208, Dec. 19, 1991, 105 Stat. 2295.)
Source evidence
Code source credit
(Pub. L. 95–369, § 16, as added Pub. L. 102–242, title II, § 208, Dec. 19, 1991, 105 Stat. 2295.)Enacted provision · exact public law section
(16) (A) The first sentence of section 10(b) is amended (i) by 12 USC 1820. inserting “any insured State branch of a foreign bank, any State branch of a foreign bank making application to become an insured bank,” immediately after “(except a District bank)”, and (ii) by inserting “or branch” before the comma after “any closed insured bank”. (B) The second sentence of section 10(b) is amended by inserting “, insured Federal branch of a foreign bank,” between the words “national bank” and “or District bank”. (C) The third sentence of section 10(b) is amended by inserting “, and in the case of a foreign bank, a binding commitment by such bank to permit such examination to the extent determined by the Board of Directors to be necessary to carry out the purposes of this Act shall be required as a condition to the insurance of any deposits” immediately before the period at the end thereof.
1 of 1 references resolved to an enrolled provision
Editorial Notes
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.
Credits
(Pub. L. 95–369, § 16, as added Pub. L. 102–242, title II, § 208, , 105 Stat. 2295.)