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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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