FinCEN - the Financial Crimes Enforcement Network of the U.S. Treasury - recently announced increases in civil monetary penalties under the Bank Secrecy Act as a result of inflation.
In order to improve the effectiveness of civil monetary penalties (CMPs) and to maintain their deterrent effect, the Federal Civil Penalties Inflation Adjustment Act of 1990, codified at 28 U.S.C. 2461, requires Federal agencies to adjust for inflation each CMP provided by law within the jurisdiction of the agency.
FinCEN's announcement increases the civil money penalties provided in 31 CFR 1010.821.
For example, the base CMP for recordkeeping violations for funds transfers (which was originally $10,000 when last amended by statute) is increasing from $23,011 to $24,793.
Likewise, the base CMP for willful or grossly negligent recordkeeping violations (which was originally $10,000 when last amended by statute) is increasing from $23,011 to $24,793.
FinCEN's attention to these matters underscores FinCEN's intention to require compliance by banks and other financial institutions with its anti-money laundering regulations.
About The Author
Jonathan Wilson is the co-founder of FinCEN Report Company with 31 years of experience in corporate, M&A and securities matters. He is the author of The Corporate Transparency Act Compliance Guide (to be published by Lexis Nexis in the summer of 2023) and the Lexis Practical Guidance Practice Note on the Corporate Transparency Act.