The NCUA adjusted civil money penalties for violations within its jurisdiction to account for inflation. Federal agencies must adjust civil money penalties at least once every four years to account for inflation.
Dates:
Effective: 09/23/2015
Recommended Actions:
The adjustment should not impact the operations of the credit union, but the credit union should be aware of the increase penalties for violations.
Detailed Analysis:
| Previous | Current | ||
| Reports of condition | |||
| 12 U.S.C. 1782(a)(3) | Inadvertent failure to submit a report or the inadvertent submission of a false or misleading report | $2,200 | $3,200 |
| Non-inadvertent failure to submit a report or the non-inadvertent submission of a false or misleading report | $22,000 | $32,000 | |
| Failure to submit a report or the submission of a false or misleading report done knowingly or with reckless disregard | $1,300,000 or 1 percent of the total assets of the credit union, whichever is less | $1,425,000 or 1 percent of the total assets of the credit union, whichever is less | |
| Remedy for failure to report; penalty for failure to file certified statement or pay premium; dispute as to deposit or premium charge; prohibition on distribution of assets or dividends while in default | |||
| 12 U.S.C. 1782(d)(2)(A) | Tier 1 CMP for inadvertent failure to submit certified statement of insured shares and charges due to NCUSIF, or inadvertent submission of false or misleading statement | $2,200 | $3,200 |
| 12 U.S.C. 1782(d)(2)(B) | Tier 2 CMP for non-inadvertent failure to submit certified statement or submission of false or misleading statement | $22,000 | $32,000 |
| 12 U.S.C. 1782(d)(2)(C) | Tier 3 CMP for failure to submit a certified statement or the submission of a false or misleading statement done knowingly or with reckless disregard | $1,300,000 or 1 percent of the total assets of the credit union, whichever is less | $1,425,000 or 1 percent of the total assets of the credit union, whichever is less |
| NCUA insurance logo | |||
| 12 U.S.C. 1785(a)(3) | Non-compliance with insurance logo requirements | $100 each day | $110 each day |
| NCUA Security standards | |||
| 12 U.S.C. 1785(e)(3) | Non-compliance with NCUA security requirements | $100 each day | $110 each day |
| Termination of insured credit union status; cease and desist orders; removal or suspension from office; procedure | |||
| 12 U.S.C. 1786(k)(2)(A) | Tier 1 CMP for violations of law, regulation, and other orders or agreements | $7,500 | $8,500 |
| Tier 2 CMP for violations of law, regulation, and other orders or agreements and for recklessly engaging in unsafe or unsound practices or breaches of fiduciary duty | $37,500 | $42,500 | |
| Tier 3 CMP for knowingly committing the violations under Tier 1 or 2 (natural person) | For a person other than an insured credit union: $1,375,000; For an insured credit union: $1,375,000 or 1 percent of the total assets of the credit union, whichever is less. | For a person other than an insured credit union: $1,525,000; For an insured credit union: $1,525,000 or 1 percent of the total assets of the credit union, whichever is less. | |
| Non-compliance with senior examiner post-employment restrictions | $250,000 | $275,000 | |
| Appraisal independence requirements | |||
| 15 U.S.C. 1639e(k) | Non-compliance with appraisal independence requirements | First violation: $10,000 Subsequent violations: $20,000 | First violation: $11,000 Subsequent violations: $20,000 |
| Flood insurance purchase and compliance requirements and escrow accounts | |||
| 42 U.S.C. 4012a(f)(5) | Non-compliance with flood insurance requirements | $2,000 for each violation | $2,000 for each violation |
