OCCFinal RuleJanuary 10, 2025

Civil Monetary Penalty Inflation Adjustment

Finance & BankingOther

Summary

The Office of the Comptroller of the Currency (OCC) is adjusting the dollar amounts of fines it can impose on banks and financial institutions to account for inflation. This is a routine update that ensures penalties keep pace with rising costs and remain meaningful deterrents for violations of banking rules.

Key Points

1The OCC increased the maximum fines it can issue to banks for breaking federal banking laws to reflect inflation since the last adjustment
2This affects all national banks and federal savings associations regulated by the OCC
3Higher penalties make it more costly for financial institutions to violate consumer protection and banking safety rules
4The adjustment is required by federal law and happens automatically to maintain the real value of penalties over time
5Consumers may indirectly benefit if larger potential fines encourage banks to comply better with regulations that protect depositors and borrowers

Impact Assessment

If you are a financial institution, this means the maximum fines the OCC can impose on your organization for violations have increased to reflect inflation, so penalties for rule-breaking are now larger in dollar terms.

Impact Level

Routine

Geographic Scope

National

Compliance Cost

Minimal

Who is Affected

Financial InstitutionsConsumers

Key Dates

Published

January 10, 2025

Regulatory Connections

Authorized By

National Bank Act 91 Stat. 1147

Amends CFR Sections

12 CFR Part 27

Read on Federal Register View Docket

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.