Laws: Cases and Codes : U.S. Code : Title 12 : Section 1847


   
U.S. Code as of: 01/19/04
Section 1847. Penalties

    (a) Criminal penalty
        (1) Whoever knowingly violates any provision of this chapter
      or, being a company, violates any regulation or order issued by
      the Board under this chapter, shall be imprisoned not more than 1
      year, fined not more than $100,000 per day for each day during
      which the violation continues, or both.
        (2) Whoever, with the intent to deceive, defraud, or profit
      significantly, knowingly violates any provision of this chapter
      shall be imprisoned not more than 5 years, fined not more than
      $1,000,000 per day for each day during which the violation
      continues, or both.

    Every officer, director, agent, and employee of a bank holding
    company shall be subject to the same penalties for false entries in
    any book, report, or statement of such bank holding company as are
    applicable to officers, directors, agents, and employees of member
    banks for false entries in any books, reports, or statements of
    member banks under section 1005 of title 18.
    (b) Civil money penalty
      (1) Penalty
        Any company which violates, and any individual who participates
      in a violation of, any provision of this chapter, or any
      regulation or order issued pursuant thereto, shall forfeit and
      pay a civil penalty of not more than $25,000 for each day during
      which such violation continues.
      (2) Assessment; etc.
        Any penalty imposed under paragraph (1) may be assessed and
      collected by the Board in the manner provided in subparagraphs
      (E), (F), (G), and (I) of section 1818(i)(2) of this title for
      penalties imposed (under such section) and any such assessment
      shall be subject to the provisions of such section.
      (3) Hearing
        The company or other person against whom any penalty is
      assessed under this subsection shall be afforded an agency
      hearing if such association or person submits a request for such
      hearing within 20 days after the issuance of the notice of
      assessment. Section 1818(h) of this title shall apply to any
      proceeding under this subsection.
      (4) Disbursement
        All penalties collected under authority of this subsection
      shall be deposited into the Treasury.
      (5) "Violate" defined
        For purposes of this section, the term "violate" includes any
      action (alone or with another or others) for or toward causing,
      bringing about, participating in, counseling, or aiding or
      abetting a violation.
      (6) Regulations
        The Board shall prescribe regulations establishing such
      procedures as may be necessary to carry out this subsection.
    (c) 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 bank holding
    company (including a separation caused by the deregistration of
    such a company) shall not affect the jurisdiction and authority of
    the Board to issue any notice and 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
    such a party with respect to such holding company (whether such
    date occurs before, on, or after August 9, 1989).
    (d) Penalty for failure to make reports
      (1) First tier
        Any company which - 
          (A) maintains procedures reasonably adapted to avoid any
        inadvertent error and, unintentionally and as a result of such
        an 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 pursuant to this chapter,
          within the period of time specified by the Board; or
            (ii) submits or publishes any false or misleading report or
          information; or

          (B) inadvertently transmits or publishes any report which 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 company 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 company which - 
          (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 pursuant to this chapter,
        within the period of time specified by the Board; 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 may, in its
      discretion, assess a penalty of not more than $1,000,000 or 1
      percent of total assets of such company, whichever is less, per
      day for each day during which such failure continues or such
      false or misleading information is not corrected.
      (4) Assessment; etc.
        Any penalty imposed under paragraph (1), (2), or (3) shall be
      assessed and collected by the Board in the manner provided in
      subsection (b) 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
        Any company against which any penalty is assessed under this
      subsection shall be afforded an agency hearing if such company
      submits a request for such hearing within 20 days after the
      issuance of the notice of assessment. Section 1818(h) of this
      title shall apply to any proceeding under this subsection.



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