12 U.S.C. § 1955 — Civil penalties

Page 1274 TITLE 12—BANKS AND BANKING § 1954 1 See References in Text note below. (b) Institutions subject to recordkeeping require- ments The authority of the Secretary of the Treas- ury under subsection (a) extends to any finan- cial institution (as defined in section 5312(a)(2) of title 31), other than any insured bank (as de- fined in section 1813(h) of this title) and any in- sured institution (as defined in section 1724(a) 1 of this title), and any partner, officer, director, or employee of any such financial institution. (c) Acceptance of automated records The Secretary shall permit an uninsured bank or financial institution to retain or maintain records referred to in subsection (a) in elec- tronic or automated form, subject to terms and conditions established by the Secretary. (Pub. L. 91–508, title I, § 123, Oct. 26, 1970, 84 Stat. 1116; Pub. L. 100–690, title VI, § 6185(d)(3)(A), Nov. 18, 1988, 102 Stat. 4357; Pub. L. 103–325, title III, § 310, Sept. 23, 1994, 108 Stat. 2221; Pub. L. 107–56, title III, § 358(e), Oct. 26, 2001, 115 Stat. 327; Pub. L. 108–458, title VI, § 6202(k), Dec. 17, 2004, 118 Stat. 3746.) Editorial Notes REFERENCES IN TEXT Section 1724 of this title, referred to in subsec. (b), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. AMENDMENTS 2004—Subsec. (a). Pub. L. 108–458 made technical cor- rection to Pub. L. 107–56. See 2001 Amendment note below. 2001—Subsec. (a). Pub. L. 107–56, as amended by Pub. L. 108–458, amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: ‘‘Where the Secretary determines that the maintenance of appropriate records and procedures by any uninsured bank or uninsured institution, or any person engaging in the business of carrying on in the United States any of the functions referred to in sub- section (b) of this section, has a high degree of useful- ness in criminal, tax, or regulatory investigations or proceedings, he may by regulation require such bank, institution, or person—’’. 1994—Subsec. (c). Pub. L. 103–325 added subsec. (c). 1988—Subsec. (b). Pub. L. 100–690 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as fol- lows: ‘‘The authority of the Secretary under this sec- tion extends to any person engaging in the business of carrying on any of the following functions: ‘‘(1) Issuing or redeeming checks, money orders, travelers’ checks, or similar instruments, except as an incident to the conduct of its own nonfinancial business. ‘‘(2) Transferring funds or credits domestically or internationally. ‘‘(3) Operating a currency exchange or otherwise dealing in foreign currencies or credits. ‘‘(4) Operating a credit card system. ‘‘(5) Performing such similar, related, or substitute functions for any of the foregoing or for banking as may be specified by the Secretary in regulations.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–458 effective as if included in Pub. L. 107–56, as of the date of enactment of such Act, and no amendment made by Pub. L. 107–56 that is inconsistent with such amendment to be deemed to have taken effect, see section 6205 of Pub. L. 108–458, set out as a note under section 1828 of this title. EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–56 applicable with respect to reports filed or records maintained on, before, or after Oct. 26, 2001, see section 358(h) of Pub. L. 107–56, set out as a note under section 1829b of this title. EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1954. Injunctions Whenever it appears to the Secretary that any person has engaged, is engaged, or is about to engage in any acts or practices constituting a violation of any regulation under this chapter, he may in his discretion bring an action, in the proper district court of the United States or the proper United States court of any territory or other place subject to the jurisdiction of the United States, to enjoin such acts or practices, and upon a proper showing a permanent or tem- porary injunction or restraining order shall be granted without bond. Upon application of the Secretary, any such court may also issue man- datory injunctions commanding any person to comply with any regulation of the Secretary under this chapter. (Pub. L. 91–508, title I, § 124, Oct. 26, 1970, 84 Stat. 1117.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1955. Civil penalties (a) For each willful or grossly negligent viola- tion of any regulation under this chapter, the Secretary may assess upon any person to which the regulation applies, or any person willfully causing a violation of the regulation, and, if such person is a partnership, corporation, or other entity, upon any partner, director, officer, or employee thereof who willfully or through gross negligence participates in the violation, a civil penalty not exceeding $10,000. (b) In the event of the failure of any person to pay any penalty assessed under this section, a civil action for the recovery thereof may, in the discretion of the Secretary, be brought in the name of the United States. (Pub. L. 91–508, title I, § 125, Oct. 26, 1970, 84 Stat. 1117; Pub. L. 100–690, title VI, § 6185(d)(3)(B), Nov. Page 1275 TITLE 12—BANKS AND BANKING § 1958 1 See References in Text note below. 18, 1988, 102 Stat. 4357; Pub. L. 102–550, title XV, § 1535(c)(1), Oct. 28, 1992, 106 Stat. 4067.) Editorial Notes AMENDMENTS 1992—Subsec. (a). Pub. L. 102–550 inserted ‘‘or any per- son willfully causing a violation of the regulation,’’ after ‘‘applies,’’. 1988—Subsec. (a). Pub. L. 100–690 inserted ‘‘or grossly negligent’’ after ‘‘willful’’ and ‘‘or through gross neg- ligence’’ after ‘‘willfully’’ and substituted ‘‘$10,000’’ for ‘‘$1,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1956. Criminal penalty Whoever willfully violates any regulation under this chapter shall be fined not more than $1,000 or imprisoned not more than one year, or both. (Pub. L. 91–508, title I, § 126, Oct. 26, 1970, 84 Stat. 1118.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1957. Additional criminal penalty in certain cases Whoever willfully violates, or willfully causes a violation of any regulation under this chapter, section 1829b of this title, or section 1730d 1 of this title, where the violation is committed in furtherance of the commission of any violation of Federal law punishable by imprisonment for more than one year, shall be fined not more than $10,000 or imprisoned not more than five years, or both. (Pub. L. 91–508, title I, § 127, Oct. 26, 1970, 84 Stat. 1118; Pub. L. 102–550, title XV, § 1535(c)(2), Oct. 28, 1992, 106 Stat. 4067.) Editorial Notes REFERENCES IN TEXT Section 1730d of this title, referred to in text, was re- pealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. AMENDMENTS 1992—Pub. L. 102–550 inserted ‘‘, or willfully causes a violation of’’ after ‘‘Whoever willfully violates’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1958. Compliance The Secretary shall have the responsibility to assure compliance with the requirements of this chapter and section 1829b of this title and may delegate such responsibility to the appropriate bank supervisory agency, or other supervisory agency. The Secretary may rely on examina- tions conducted by a State supervisory agency of a category of financial institution, if the Sec- retary determines that the category of financial institution is required to comply with this chap- ter and section 1829b of this title (and regula- tions prescribed under this chapter and section 1829b of this title), or the State supervisory agency examines the category of financial insti- tution for compliance with this chapter and sec- tion 1829b of this title (and regulations pre- scribed under this chapter and section 1829b of this title). (Pub. L. 91–508, title I, § 128, Oct. 26, 1970, 84 Stat. 1118; Pub. L. 113–156, § 2(b), Aug. 8, 2014, 128 Stat. 1829.) Editorial Notes AMENDMENTS 2014—Pub. L. 113–156 substituted ‘‘requirements of this chapter and section 1829b of this title’’ for ‘‘re- quirements of this chapter and sections 1730d and 1829b of this title’’ and inserted at end ‘‘The Secretary may rely on examinations conducted by a State supervisory agency of a category of financial institution, if the Sec- retary determines that the category of financial insti- tution is required to comply with this chapter and sec- tion 1829b of this title (and regulations prescribed under this chapter and section 1829b of this title), or the State supervisory agency examines the category of financial institution for compliance with this chapter and section 1829b of this title (and regulations pre- scribed under this chapter and section 1829b of this title).’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. CONSULTATION WITH STATE AGENCIES Pub. L. 113–156, § 2(c), Aug. 8, 2014, 128 Stat. 1830, pro- vided that: ‘‘In issuing rules to carry out section 5318(a)(6) of title 31, United States Code, and section 128 of Public Law 91–508 (12 U.S.C. 1958), the Secretary of the Treasury shall consult with State supervisory agencies.’’