---
kind: "section"
citation: "12 U.S.C. § 3110"
title: "12"
title_heading: "Banks and Banking"
number: "3110"
heading: "Penalties"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3110"
units:
  - "Chapter 32 — Foreign Bank Participation in Domestic Markets"
---

# §3110. Penalties

- (a) **Civil money penalty—**
  - (1) **In general—** Any [foreign bank](/usc/12/3101.md?p=7), and any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), that violates, and any individual who participates in a violation of, any provision of this chapter, or any regulation prescribed or order issued under this chapter, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation continues.
  - (2) **Assessment procedures—** Any penalty imposed under [paragraph (1)](#a-1) may be assessed and collected by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency in the manner provided in subparagraphs (E), (F), (G), (H), and (I) of [section 1818(i)(2) of this title](/usc/12/1818.md?p=i-2) for penalties imposed (under such section), and any such assessments shall be subject to the provisions of such section.
  - (3) **Hearing procedure—** [Section 1818(h) of this title](/usc/12/1818.md?p=h) shall apply to any proceeding under this section.
  - (4) **Disbursement—** All penalties collected under authority of this section shall be deposited into the Treasury.
  - (5) **“Violate” defined—** For purposes of this section, the term “violate” includes taking any action (alone or with others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.
  - (6) **Regulations—** The [Board](/usc/12/3101.md?p=2) and the [Comptroller](/usc/12/3101.md?p=4) of the Currency shall each prescribe regulations establishing such procedures as may be necessary to carry out this section.
- (b) **Notice under this section after separation from service—** The resignation, termination of employment or participation, or separation of an institution-affiliated party (within the meaning of [section 1813(u) of this title](/usc/12/1813.md?p=u)) with respect to a [foreign bank](/usc/12/3101.md?p=7), or any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7) (including a separation caused by the termination of a location in the United States), shall not affect the jurisdiction or authority of the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency to issue any notice or to proceed under this section against any such party, if such notice is served before the end of the 6-year period beginning on the date such party ceased to be an institution-affiliated party with respect to such [foreign bank](/usc/12/3101.md?p=7) or such [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7) (whether such date occurs on, before, or after December 19, 1991).
- (c) **Penalty for failure to make reports—**
  - (1) **First tier—** Any [foreign bank](/usc/12/3101.md?p=7), or any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), that—
    - (A) maintains procedures reasonably adapted to avoid any inadvertent error and, unintentionally and as a result of such error—
      - (i) fails to make, submit, or publish such reports or information as may be required under this chapter or under regulations prescribed by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency under this chapter, within the period of time specified by the [agency](/usc/12/3101.md?p=1); or
      - (ii) submits or publishes any false or misleading report or information; or
    - (B) inadvertently transmits or publishes any report that is minimally late,

    shall be subject to a penalty of not more than $2,000 for each day during which such failure continues or such false or misleading information is not corrected. The [foreign bank](/usc/12/3101.md?p=7), or the [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), shall have the burden of proving that an error was inadvertent and that a report was inadvertently transmitted or published late.

  - (2) **Second tier—** Any [foreign bank](/usc/12/3101.md?p=7), or any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), that—
    - (A) fails to make, submit, or publish such reports or information as may be required under this chapter or under regulations prescribed by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency pursuant to this chapter, within the time period specified by such [agency](/usc/12/3101.md?p=1); or
    - (B) submits or publishes any false or misleading report or information,

    in a manner not described in [paragraph (1)](#c-1) shall be subject to a penalty of not more than $20,000 for each day during which such failure continues or such false or misleading information is not corrected.

  - (3) **Third tier—** Notwithstanding [paragraph (2)](#c-2), if any [company](/usc/12/3101.md?p=13) knowingly or with reckless disregard for the accuracy of any information or report described in [paragraph (2)](#c-2) submits or publishes any false or misleading report or information, the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency may, in the [Board](/usc/12/3101.md?p=2)’s or [Comptroller](/usc/12/3101.md?p=4)’s discretion, assess a penalty of not more than $1,000,000 or 1 percent of total assets of such [foreign bank](/usc/12/3101.md?p=7), or such [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), whichever is less, per day for each day during which such failure continues or such false or misleading information is not corrected.
  - (4) **Assessment of penalties—** Any penalty imposed under paragraph [(1)](#c-1), [(2)](#c-2), or [(3)](#c-3) shall be assessed and collected by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency in the manner provided in [subsection (a)(2)](#a-2) (for penalties imposed under such subsection) and any such assessment (including the determination of the amount of the penalty) shall be subject to the provisions of such subsection.
  - (5) **Hearing procedure—** [Section 1818(h) of this title](/usc/12/1818.md?p=h) shall apply to any proceeding under this subsection.

## Source credit

(Pub. L. 95–369, § 16, as added Pub. L. 102–242, title II, § 208, Dec. 19, 1991, 105 Stat. 2295.)

## Notes

### Editorial Notes

### References in Text

For definition of “this chapter”, referred to in subsecs. (a)(1) and (c)(1)(A)(i), (2)(A), see References in Text note set out under section 3101 of this title.