Civil Monetary Penalty Inflation Adjustment

Key Points

• 1FinCEN is raising the maximum penalties that can be imposed for violations of money laundering laws and regulations to account for inflation since the last adjustment
• 2Banks, credit unions, money transfer services, and other financial institutions are the primary entities affected by these higher penalty amounts
• 3The penalty increases apply to failures to report suspicious transactions, maintain proper customer records, or comply with anti-money laundering requirements
• 4Higher penalties incentivize financial institutions to invest more in compliance programs and staff to detect and prevent financial crimes
• 5The adjustment is required by federal law, which mandates that agencies update civil penalties annually to reflect the rising cost of living

Key Dates