FRSFinal Rule

Civil Monetary Penalty Inflation Adjustment

Finance & Banking

Summary

The Federal Reserve is adjusting the dollar amounts of fines it can impose for violations of its rules to account for inflation. This means penalties for breaking banking and financial regulations will increase each year to maintain their real-world impact, similar to how prices for everyday goods go up over time.

Key Points

  • 1The Federal Reserve updates penalty amounts annually to keep up with inflation, so fines remain meaningful as the cost of living increases
  • 2Banks and financial institutions that violate Fed rules will face higher monetary penalties starting in 2025
  • 3The adjustment is automatic and required by federal law, not a new policy choice by the Fed
  • 4This affects anyone who works in banking or finance, as well as consumers who depend on these institutions being held accountable
  • 5The updated penalty amounts become effective immediately and apply to violations going forward

Key Dates

Published

January 13, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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