PENALTY ON FAILURE TO REPORT INTERESTS IN FOREIGN FINANCIAL ACCOUNTS.

SEC. 821. PENALTY ON FAILURE TO REPORT INTERESTS IN FOREIGN FINANCIAL ACCOUNTS.(a) In General.—Section 5321(a)(5) of title 31, United States Code, is amended to read as follows:“(5) Foreign financial agency transaction violation.—“(A) Penalty authorized.—The Secretary of the Treasury may impose a civil money penalty on any person who violates, or causes any violation of, any provision of section 5314.“(B) Amount of penalty.—“(i) In general.—Except as provided in subparagraph (C), the amount of any civil penalty imposed under subparagraph (A) shall not exceed $10,000.“(ii) Reasonable cause exception.—No penalty shall be imposed under subparagraph (A) with respect to any violation if—“(I) such violation was due to reasonable cause, and“(II) the amount of the transaction or the balance in the account at the time of the transaction was properly reported.“(C) Willful violations.—In the case of any person willfully violating, or willfully causing any violation of, any provision of section 5314—“(i) the maximum penalty under subparagraph (B)(i) shall be increased to the greater of—“(I) $100,000, or “(II) 50 percent of the amount determined under subparagraph (D), and“(ii) subparagraph (B)(ii) shall not apply.“(D) Amount.—The amount determined under this subparagraph is—“(i) in the case of a violation involving a transaction, the amount of the transaction, or“(ii) in the case of a violation involving a failure to report the existence of an account or any identifying information required to be provided with respect to an account, the balance in the account at the time of the violation.”.(b) Effective Date.—The amendment made by this section shall apply to violations occurring after the date of the enactment of this Act.