AMENDMENTS TO EXPAND AND INCREASE CIVIL MONEY PENALTIES.

SEC. 907. AMENDMENTS TO EXPAND AND INCREASE CIVIL MONEY PENALTIES. (a) General Provisions for Depository Institutions Insured by the FDIC.—Section 8(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)) is amended to read as follows: “(2) Civil money penalty.— “(A) First tier.—Any insured depository institution which, and any institution-affiliated party who— “(i) violates any law or regulation; “(ii) violates any final order or temporary order issued pursuant to subsection (b), (c), (e), (g), or (s); “(iii) violates any condition imposed in writing by the appropriate Federal banking agency in connection with the grant of any application or other request by such depository institution; or “(iv) violates any written agreement between such depository institution and such agency, 103 STAT. 463shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(B) Second tier.—Notwithstanding subparagraph (A), any insured depository institution which, and any institution-affiliated party who— “(i)(I) commits any violation described in any clause of subparagraph (A); “(II) recklessly engages in an unsafe or unsound practice in conducting the affairs of such insured depository institution; or “(III) breaches any fiduciary duty; “(ii) which violation, practice, or breach— “(I) is part of a pattern of misconduct; “(II) causes or is likely to cause more than a minimal loss to such depository institution; or “(III) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(C) Third tier.—Notwithstanding subparagraphs (A) and (B), any insured depository institution which, and any institution-affiliated party who— “(i) knowingly— “(I) commits any violation described in any clause of subparagraph (A); “(II) engages in any unsafe or unsound practice in conducting the affairs of such depository institution; or “(III) breaches any fiduciary duty; and “(ii) knowingly or recklessly causes a substantial loss to such depository institution or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subparagraph (D) for each day during which such violation, practice, or breach continues. “(D) Maximum amounts of penalties for any violation described in subparagraph (c).—The maximum daily amount of any civil penalty which may be assessed pursuant to subparagraph (C) for any violation, practice, or breach described in such subparagraph is— “(i) in the case of any person other than an insured depository institution, an amount to not exceed $1,000,000; and “(ii) in the case of any insured depository institution, an amount not to exceed the lesser of— “(I) $1,000,000; or “(II) 1 percent of the total assets of such institution. “(E) Assessment.— “(i) Written notice.—Any penalty imposed under subparagraph (A), (B), or (C) may be assessed and collected by the appropriate Federal banking agency by written notice. 103 STAT. 464 “(ii) Finality of assessment.—If, with respect to any assessment under clause (i), a hearing is not requested pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order. “(F) Authority to modify or remit penalty.—Any appropriate Federal banking agency may compromise, modify, or remit any penalty which such agency may assess or had already assessed under subparagraph (A), (B), or (C). “(G) Mitigating factors.—In determining the amount of any penalty imposed under subparagraph (A), (B), or (C), the appropriate agency shall take into account the appropriateness of the penalty with respect to— “(i) the size of financial resources and good faith of the insured depository institution or other person charged; “(ii) the gravity of the violation; “(iii) the history of previous violations; and “(iv) such other matters as justice may require. “(H) Hearing.—The insured depository institution or other person against whom any penalty is assessed under this paragraph shall be afforded an agency hearing if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. “(I) Collection.— “(i) Referral.—If any insured depository institution or other person fails to pay an assessment after any penalty assessed under this paragraph has become final, the agency that imposed the penalty shall recover the amount assessed by action in the appropriate United States district court. “(ii) Appropriateness of penalty not reviewable —In any civil action under clause (i), the validity and appropriateness of the penalty shall not be subject to review. “(J) Disbursement.—All penalties collected under authority of this paragraph shall be deposited into the Treasury. “(K) Regulations.—Each appropriate Federal banking agency shall prescribe regulations establishing such procedures as may be necessary to carry out this paragraph.”, (b) General Provisions for Credit Unions Insured by the NCUA.—Section 206(k)(2) of the Federal Credit Union Act (12 U.S.C. 1786(k)(2)) is amended to read as follows: “(2) Civil money penalty.— “(A) First tier.—Any insured credit union which, and any institution-affiliated party who— “(i) violates any law or regulation; “(ii) violates any final order or temporary order issued pursuant to subsection (e), (f), (g), (i), or (q); “(iii) violates any condition imposed in writing by the Board in connection with the grant of any application or other request by such credit union; or “(iv) violates any written agreement between such credit union and such agency, 103 STAT. 465shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(B) Second tier.—Notwithstanding subparagraph (A), any insured credit union which, and any institution-affiliated party who— “(i)(I) commits any violation described in any clause of subparagraph (A); “(II) recklessly engages in an unsafe or unsound practice in conducting the affairs of such credit union; or “(III) breaches any fiduciary duty; “(ii) which violation, practice, or breach— “(I) is part of a pattern of misconduct; “(II) causes or is likely to cause more than a minimal loss to such credit union; or “(III) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(C) Third tier.—Notwithstanding subparagraphs (A) and (B), any insured credit union which, and any institution-affiliated party who— “(i) knowingly— “(I) commits any violation described in any clause of subparagraph (A); “(II) engages in any unsafe or unsound practice in conducting the affairs of such credit union; or “(II) breaches any fiduciary duty; and “(ii) knowingly or recklessly causes a substantial loss to such credit union or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subparagraph (D) for each day during which such violation, practice, or breach continues. “(D) Maximum amounts of penalties for any violation described in subparagraph (c).—The maximum daily amount of any civil penalty which may be assessed pursuant to subparagraph (C) for any violation, practice, or breach described in such subparagraph is— “(i) in the case of any person other than an insured credit union, an amount to not exceed $1,000,000; and “(ii) in the case of any insured credit union, an amount not to exceed the lesser of— “(I) $1,000,000; or “(II) 1 percent of the total assets of such credit union. “(E) Assessment.— “(i) Written notice.—Any penalty imposed under subparagraph (A), (B), or (C) may be assessed and collected by the Board by written notice. “(ii) Finality of assessment.—If, with respect to any assessment under clause (i), a hearing is not requested pursuant to subparagraph (H) within the period of time 103 STAT. 466allowed under such subparagraph, the assessment shall constitute a final and unappealable order. “(F) Authority to modify or remit penalty.—The Board may compromise, modify, or remit any penalty which such agency may assess or had already assessed under subparagraph (A), (B), or (C). “(G) Mitigating factors.—In determining the amount of any penalty imposed under subparagraph (A), (B), or (C), the Board shall take into account the appropriateness of the penalty with respect to— “(i) the size of financial resources and good faith of the insured credit union or the person charged; “(ii) the gravity of the violation; “(iii) the history of previous violations; and “(iv) such other matters as justice may require. “(H) Hearing.—The insured credit union or other person against whom any penalty is assessed under this paragraph shall be afforded an agency hearing if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. “(I) Collection.— “(i) Referral.—If any insured credit union or other person fails to pay an assessment after any penalty assessed under this paragraph has become final, the Board shall recover the amount assessed by action in the appropriate United States district court. “(ii) Appropriateness of penalty not reviewable.—In any civil action under clause (i), the validity and appropriateness of the penalty shall not be subject to review. “(J) Disbursement.—All penalties collected under authority of this paragraph shall be deposited into the Treasury. “(K) 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. “(L) Regulations.—The Board shall prescribe regulations establishing such procedures as may be necessary to carry out this paragraph.”. (c) Nonmember Insured Banks and Savings Associations.—- Paragraphs (4) and (5) of section 18(j) of the Federal Deposit Insurance Act (12 U.S.C. 1828(j)) are amended to read as follows: “(4) Civil money penalty.— “(A) First tier.—Any nonmember insured bank or savings association which, and any institution-affiliated party who, violates any provision of section 22(h), 23A, or 23B of the Federal Reserve Act or any lawful regulation issued pursuant thereto, and any nonmember insured bank which, and any institution-affiliated party who, violates any provision of section 20 of the Banking Act of 1933, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(B) Second tier.—Notwithstanding subparagraph (A), any nonmember insured bank or savings association which, and any institution-affiliated party who— 103 STAT. 467 “(i)(I) commits any violation described in any clause of subparagraph (A); “(II) recklessly engages in an unsafe or unsound practice in conducting the affairs of such bank or association, as the case may be; or “(III) breaches any fiduciary duty; “(ii) which violation, practice, or breach— “(I) is part of a pattern of misconduct; “(II) results in more than a minimal loss to such bank or association, as the case may be; or “(III) causes or is likely to cause pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(C) Third tier.—Notwithstanding subparagraphs (A) and (B), any nonmember insured bank or savings association which, and any institution-affiliated party who— “(i) knowingly— “(I) commits any violation described in any clause of subparagraph (A); “(II) engages in any unsafe or unsound practice in conducting the affairs of such bank or association; or “(III) breaches any fiduciary duty; and “(ii) knowingly or recklessly causes a substantial loss to such bank or association or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subparagraph (D) for each day during which such violation, practice, or breach continues. “(D) Maximum amounts of penalties for any violation described in subparagraph (c).—The maximum daily amount of any civil penalty which may be assessed pursuant to subparagraph (C) for any violation, practice, or breach described in such subparagraph is— “(i) in the case of any person other than a nonmember insured bank or savings association, an amount to not exceed $1,000,000; and “(ii) in the case of any nonmember insured bank or savings association, an amount not to exceed the lesser of— “(I) $1,000,000; or “(II) 1 percent of the total assets of such bank or association. “(E) Assessment; etc.—Any penalty imposed under subparagraph (A), (B), or (C) shall be assessed and collected by the appropriate Federal banking agency in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(F) Hearing.—The nonmember insured bank, savings association, or other person against whom any penalty is assessed under this paragraph shall be afforded an agency 103 STAT. 468hearing if such nonmember insured bank, savings association, or other person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) shall apply to any proceeding under this paragraph. “(G) Disbursement.—All penalties collected under authority of this paragraph shall be deposited into the Treasury. “(5) Regulations.—The appropriate Federal banking agency shall prescribe regulations establishing such procedures as may be necessary to carry out paragraph (4).”. (d) Change in Control of Depository Institution.—Section 7(j)(16) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)(16)) is amended to read as follows: “(16) Civil money penalty.— “(A) First tier.—Any person who violates any provision of this subsection, or any regulation or order issued by the appropriate Federal banking agency under this subsection, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(B) Second tier.—Notwithstanding subparagraph (A), any person who— “(i)(I) commits any violation described in any clause of subparagraph (A); “(II) recklessly engages in an unsafe or unsound practice in conducting the affairs of a depository institution; or “(III) breaches any fiduciary duty; “(ii) which violation, practice, or breach— “(I) is part of a pattern of misconduct; “(II) causes or is likely to cause more than a minimal loss to such institution; or “(III) results in pecuniary gain or other benefit to such person, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(C) Third tier.—Notwithstanding subparagraphs (A) and (B), any person who— “(i) knowingly— “(I) commits any violation described in any clause of subparagraph (A); “(II) engages tn any unsafe or unsound practice in conducting the affairs of a depository institution; or “(III) breaches any fiduciary duty; and “(ii) knowingly or recklessly causes a substantial loss to such institution or a substantial pecuniary gain or other benefit to such person by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subparagraph (D) for each day during which such violation, practice, or breach continues. “(D) Maximum amounts of penalties for any violation described in subparagraph (c).—The maximum daily amount of any civil penalty which may be assessed pursu-103 STAT. 469ant to subparagraph (C) for any violation, practice, or breach described in such subparagraph is— “(i) in the case of any person other than a depository institution, an amount to not exceed $1,000,000; and “(ii) in the case of a depository institution, an amount not to exceed the lesser of— “(I) $1,000,000; or “(II) 1 percent of the total assets of such institution. “(E) Assessment; etc.—Any penalty imposed under subparagraph (A), (B), or (C) shall be assessed and collected by the appropriate Federal banking agency in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(F) Hearing.—The depository institution or other person against whom any penalty is assessed under this paragraph shall be afforded an agency hearing if such institution or other person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) shall apply to any proceeding under this paragraph. “(G) Disbursement.—All penalties collected under authority of this paragraph shall be deposited into the Treasury.”. (e) National Banks.—Section 5239(b) of the Revised Statutes (12 U.S.C. 93(b)) is amended to read as follows: “(b) Civil Money Penalty.— “(1) First tier.—Any national banking association which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such association who, violates any provision of this title or any of the provisions of the first section of the Act of September 28, 1962, (76 Stat. 668; 12 U.S.C. 92a), or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(2) Second tier.—Notwithstanding paragraph (1), any national banking association which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such association who, commits any violation described in paragraph (1) which— “(A)(i) commits any violation described in any paragraph (1); “(ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of such association; or “(iii) breaches any fiduciary duty; “(B) which violation, practice, or breach— “(i) is part of a pattern of misconduct; “(ii) causes or is likely to cause more than a minimal loss to such association; or “(iii) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. 103 STAT. 470 “(3) Third tier.—Notwithstanding paragraphs (1) and (2), any national banking association which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such association who— “(A) knowingly— “(i) commits any violation described in paragraph (1); “(ii) engages in any unsafe or unsound practice in conducting the affairs of such association; or “(iii) breaches any fiduciary duty; and “(B) knowingly or recklessly causes a substantial loss to such association or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under paragraph (4) for each day during which such violation, practice, or breach continues. “(4) Maximum amounts of penalties for any violation described in paragraph (3).—The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is— “(A) in the case of any person other than a national banking association, an amount to not exceed $1,000,000; and “(B) in the case of a national banking association, an amount not to exceed the lesser of— “(i) $1,000,000; or “(ii) 1 percent of the total assets of such association. “(5) Assessment; etc.—Any penalty imposed under paragraph (1), (2), or (3) shall be assessed and collected by the Comptroller of the Currency in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(6) Hearing.—The association 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 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subsection. “(7) Disbursement.—All penalties collected under authority of this subsection shall be deposited into the Treasury. “(8) 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. “(12) Regulations.—The Comptroller shall prescribe regulations establishing such procedures as may be necessary to carry out this subsection.”. (f) National Banks.—The 2d paragraph of section 5240 of the Revised Statutes (12 U.S.C. 481) is amended by striking “$100” and inserting “$5,000”. (g) Member Banks.—Section 29 of the Federal Reserve Act (12 U.S.C. 504) is amended to read as follows: 103 STAT. 471 “SEC. 29. CIVIL MONEY PENALTY. (a) First Tier.—Any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who, violates any provision of section 22, 23A, or 23B, or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(b) Second tier.—Notwithstanding subsection (a), any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who “(1)(A) commits any violation described in subsection (a); “(B) recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or “(C) breaches any fiduciary duty; “(2) which violation, practice, or breach— “(A) is part of a pattern of misconduct; “(B) causes or is likely to cause more than a minimal loss to such member bank; or “(C) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(c) Third tier.—Notwithstanding subsections (a) and (b), any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who— “(1) knowingly— “(A) commits any violation described in subsection (a); “(B) engages in any unsafe or unsound practice in conducting the affairs of such credit union; or “(C) breaches any fiduciary duty; and “(2) knowingly or recklessly causes a substantial loss to such credit union or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subsection (d) for each day during which such violation, practice, or breach continues. “(d) Maximum Amounts of Penalties for any Violation Described in Subsection (c).—The maximum daily amount of any civil penalty which may be assessed pursuant to subsection (c) for any violation, practice, or breach described in such subsection is— “(1) in the case of any person other than a member bank, an amount to not exceed $1,000,000; and “(2) in the case of a member bank, an amount not to exceed the lesser of— “(A) $1,000,000; or “(B) 1 percent of the total assets of such member bank. “(e) Assessment; etc.—Any penalty imposed under subsection (a), (b), or (c) shall be assessed and collected by “(1) in the case of a national bank, by the Comptroller of the Currency; and “(2) in the case of a State member bank, by the Board, in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act for penalties 103 STAT. 472imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(f) Hearing.—The member bank or other person against whom any penalty is assessed under this section shall be afforded an agency hearing if such member bank or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this section. “(g) Disbursement.—All penalties collected under authority of this paragraph shall be deposited into the Treasury. “(h) 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. “(i) Regulations.—The Comptroller of the Currency and the Board shall prescribe regulations establishing such procedures as may be necessary to carry out this section.”. (h) Member Bank.—Section 19(1) of the Federal Reserve Act (12 U.S.C. 505(1)) is amended to read as follows: “(l) Civil Money Penalty.— “(1) First tier.—Any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who, violates any provision of this section, or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(2) Second tier.—Notwithstanding paragraph (1), any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who— “(A)(i) commits any violation described in paragraph (1); “(ii) recklessly engages in an unsafe or unsound practice in conducting the affairs of such member bank; or “(ii) breaches any fiduciary duty; “(B) which violation, practice, or breach— “(i) is part of a pattern of misconduct; “(ii) causes or is likely to cause more than a minimal loss to such member bank; or “(iii) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(3) Third tier.—Notwithstanding paragraphs (1) and (2), any member bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such member bank who— “(A) knowingly— “(i) commits any violation described in paragraph (1); “(ii) engages in any unsafe or unsound practice in conducting the affairs of such member bank; or “(iii) breaches any fiduciary duty; and “(B) knowingly or recklessly causes a substantial loss to such member bank or a substantial pecuniary gain or other 103 STAT. 473benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under paragraph (4) for each day during which such violation, practice, or breach continues. “(4) Maximum amounts of penalties for any violation described in paragraph (3).—The maximum daily amount of any civil penalty which may be assessed pursuant to paragraph (3) for any violation, practice, or breach described in such paragraph is— “(A) in the case of any person other than a member bank, an amount not to exceed $1,000,000; and “(B) in the case of a member bank, an amount not to exceed the lesser of— “(i) $1,000,000; or “(ii) 1 percent of the total assets of such member bank. “(5) Assessment; etc.—Any penalty imposed under paragraph (1), (2), or (3) may be assessed and collected by the Board in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(6) Hearing.—The member bank or other person against whom any penalty is assessed under this subsection shall be afforded an agency hearing if such member bank or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subsection. “(7) Disbursement.—All penalties collected under authority of this subsection shall be deposited into the Treasury. “(8) 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. “(9) Regulations.—The Board shall prescribe regulations establishing such procedures as may be necessary to carry out this subsection.”. (i) Banks.—Section 106(b)(2)(F) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972(2)(F)) is amended to read as allows: “(B) Civil money penalty.— “(i) First tier.—Any bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such bank who, violates any provision of this paragraph shall forfeit and pay a civil penalty of not more than $5,000 for each day during which such violation continues. “(ii) Second tier.—Notwithstanding clause (i), any bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such bank who— “(I) (aa) commits any violation described in clause (i); “(bb) recklessly engages in an unsafe or unsound practice in conducting the affairs of such bank; or 103 STAT. 474 “(cc) breaches any fiduciary duty; “(II) which violation, practice, or breach— “(aa) is part of a pattern of misconduct; “(bb) causes or is likely to cause more than a minimal loss to such bank; or “(cc) results in pecuniary gain or other benefit to such party, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation, practice, or breach continues. “(iii) Third tier.—Notwithstanding clauses (i) and (ii), any bank which, and any institution-affiliated party (within the meaning of section 3(u) of the Federal Deposit Insurance Act) with respect to such bank who— “(I) knowingly— “(aa) commits any violation described in clause (i); “(bb) engages in any unsafe or unsound practice in conducting the affairs of such bank; or “(cc) breaches any fiduciary duty; and “(II) knowingly or recklessly causes a substantial loss to such bank or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach, shall forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under clause (iv) for each day during which such violation, practice, or breach continues. “(iv) Maximum amounts of penalties for any violation described in clause (iii).—The maximum daily amount of any civil penalty which may be assessed pursuant to clause (iii) for any violation, practice, or breach described in such clause is— “(I) in the case of any person other than a bank, an amount to not exceed $1,000,000; and “(II) in the case of a bank, an amount not to exceed the lessor of— “(aa) $1,000,000; or “(bb) 1 percent of the total assets of such bank. “(v) Assessment; etc.—Any penalty imposed under clause (i), (ii), or (iii) may be assessed and collected— “(I) in the case of a national bank, by the Comptroller of the Currency; “(II) in the case of a State member bank, by the Board; and “(III) in the case of an insured nonmember State bank, by the Federal Deposit Insurance Corporation, in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(vi) Hearing.—The bank or other person against whom any penalty is assessed under this subparagraph shall be afforded an agency hearing if such bank or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subparagraph. “(vii) Disbursement.—All penalties collected under authority of this subsection shall be deposited into the Treasury. 103 STAT. 475 “(viii) Violate defined.—For purposes of this paragraph, 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. “(ix) Regulations.—The Comptroller of the Currency, the Board, and the Federal Deposit Insurance Corporation shall prescribe regulations establishing such procedures as may be necessary to carry out this subparagraph.”. (j) Bank Holding Companies.—Section 8 of the Bank Holding Company Act of 1956 (12 U.S.C. 1847) is amended— (1) in subsection (a), by striking out the first 2 sentences and inserting in lieu thereof the following: “(a) Criminal Penalty.— “(1) Whoever knowingly violates any provision of this Act or, being a company, violates any regulation or order issued by the Board under this Act, 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 Act 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.”; and (2) by amending subsection (b) to read as follows: “(b) Civil Money Penalty.— “(1) Penalty.—Any company which violates, and any individual who participates in a violation of, any provision of this Act, 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 8(i)(2) of the Federal Deposit Insurance Act 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 8(h) of the Federal Deposit Insurance Act 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.”. (k) Savings and Loan Holding Companies.—Section 10(i) of the Home Owners Loan Act of 1933 (as amended by section 301 of this Act) is amended— (1) by striking paragraphs (1) and (2) and inserting in lieu thereof the following: “(1) Criminal penalty.— 103 STAT. 476 “(A) Whoever knowingly violates any provision of this section or being a company, violates any regulation or order issued by the Director under this section, 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. “(B) Whoever, with the intent to deceive, defraud, or profit significantly, knowingly violates any provision of this section shall be fined not more than $1,000,000 per day for each day during which the violation continues, imprisoned not more than 5 years, or both.”; (2) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and (3) by amending paragraph (3) (as so redesignated by paragraph (2) of this subsection) to read as follows: “(3) Civil money penalty.— “(A) Penalty.—Any company which violates, and any person who participates in a violation of, any provision of this section, 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. “(B) Assessment; etc.—Any penalty imposed under subparagraph (A) may be assessed and collected by the Director in the manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) of the Federal Deposit Insurance Act for penalties imposed (under such section) and any such assessment shall be subject to the provisions of such section. “(C) Hearing.—The company or other person against whom any penalty is assessed under this paragraph shall be afforded an agency hearing if such company or person submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this paragraph. “(D) Disbursement.—All penalties collected under authority of this paragraph shall be deposited into the Treasury. “(E) 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. “(F) Regulations.—The Director shall prescribe regulations establishing such procedures as may be necessary to carry out this paragraph.”. (l) Effective Date.—The amendments made by this section shall apply with respect to conduct engaged in by any person after the date of the enactment of this Act, except that the increased maximum civil penalties of $5,000 and $25,000 per violation or per day may apply to such conduct engaged in before such date if such conduct— (1) is not already subject to a notice (initiating an administrative proceeding) issued by the appropriate Federal banking agency (as defined in section 3(q) of the Federal Deposit Insurance Act) or the National Credit Union Administration Board; and (2) occurred after the completion of the last report of examination of the institution involved by the appropriate Federal 103 STAT. 477banking agency (as so defined) occurring before the date of the enactment of this Act.