[Federal Register Volume 90, Number 18 (Wednesday, January 29, 2025)]
[Notices]
[Pages 8429-8430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01633]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Investment Security
Notice on Penalty Inflation Adjustments for Civil Monetary
Penalties for Violations of Provisions Pertaining to U.S. Investments
in Certain National Security Technologies and Products in Countries of
Concern
AGENCY: Office of Investment Security, Department of the Treasury.
ACTION: Notice announcing penalty inflation adjustments for civil
monetary penalties for 2025.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Investment Security
is giving notice of its updated maximum civil monetary penalties in
connection with the Outbound Investment Security Program. These amounts
are effective through January 14, 2026. These figures represent an
annual adjustment for inflation. The updated figures and notification
are required by the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015.
FOR FURTHER INFORMATION CONTACT: Meena R. Sharma, Director, Office of
Investment Security Policy and International Relations, at U.S.
Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC
20220; telephone: (202) 622-3425; email:
OIS.Outbound.Regulations@treasury.gov.
SUPPLEMENTARY INFORMATION:
Background
On August 9, 2023, the President issued Executive Order 14105 (88
FR 54867), ``Addressing United States Investments in Certain National
Security Technologies and Products in Countries of Concern'' (the
Outbound Order), pursuant to his authority under the Constitution and
the laws of the United States, including the
[[Page 8430]]
International Emergency Economic Powers Act (IEEPA), the National
Emergencies Act, and section 301 of title 3, United States Code
(U.S.C.). Under section 10(a) of the Outbound Order, the President
authorizes the Secretary of the Treasury to promulgate rules and
regulations and requires the Secretary to investigate, in consultation
with the heads of relevant agencies, as appropriate, violations of the
Outbound Order or the regulations and pursue available civil penalties
for such violations. On October 28, 2024, the Treasury Department
issued a final rule (89 FR 90398, November 15, 2024) (Final Rule) with
the regulations implementing the Outbound Order.
Under Sec. 850.701 of the Final Rule, the Treasury Department may
impose a civil monetary penalty on any person that violates the Final
Rule. The Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended (Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note) (the
FCPIA Act), requires annual adjustment of this civil monetary penalty,
as well as publication in the Federal Register of the adjusted penalty
amount. As of the date of issuance of the Final Rule, the current
maximum civil penalty under IEEPA was an amount not to exceed the
greater of an amount that is twice the amount of the transaction that
is the basis of the violation with respect to which the penalty is
imposed or $368,136.
The method of calculating civil penalty adjustments applied in this
notice is required by the FCPIA Act. Under the FCPIA Act and the Office
of Management and Budget (OMB) guidance required by the FCPIA Act,
annual inflation adjustments subsequent to the initial catch-up
adjustment are to be based on the percent change between the Consumer
Price Index for all Urban Consumers (CPI-U) for the October preceding
the date of the adjustment and the prior year's October CPI-U. As set
forth in OMB Memorandum M-25-02 of December 17, 2024, the adjustment
multiplier for 2025 is 1.02598. In order to complete the 2025 annual
adjustment, each current maximum civil penalty is multiplied by the
2025 adjustment multiplier. Under the FCPIA Act, any increase in the
maximum civil penalty must be rounded to the nearest multiple of $1.
The Treasury Department imposes civil penalties for violations of
the Final Rule pursuant to the penalty authority in IEEPA. The
adjustment results in the following new maximum civil penalties:
$368,136 (current maximum per violation) x 1.02598 (OMB-issued
inflationary adjustment multiplier) = $377,700.17; or an amount that is
twice the amount of the transaction that is the basis of the violation
with respect to which the penalty is imposed. When rounded to the
nearest dollar, the new maximum penalty is $377,700, or an amount that
is twice the amount of the transaction that is the basis of the
violation with respect to which the penalty is imposed.
Andrew Fair,
Acting Assistant Secretary, Office of Investment Security.
[FR Doc. 2025-01633 Filed 1-28-25; 8:45 am]
BILLING CODE 4810-AK-P