---
kind: "section"
citation: "12 U.S.C. § 5497"
title: "12"
title_heading: "Banks and Banking"
number: "5497"
heading: "Funding; penalties and fines"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5497"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter V — Bureau of Consumer Financial Protection"
  - "Part A — Bureau of Consumer Financial Protection"
---

# §5497. Funding; penalties and fines

- (a) **Transfer of funds from Board Of Governors—**
  - (1) **In general—** Each year (or quarter of such year), beginning on the [designated transfer date](/usc/12/5481.md?p=9), and each quarter thereafter, the [Board of Governors](/usc/12/5301.md?p=3) shall transfer to the [Bureau](/usc/12/5301.md?p=4) from the combined earnings of the Federal Reserve System, the amount determined by the [Director](/usc/12/5341.md?p=1) to be reasonably necessary to carry out the authorities of the [Bureau](/usc/12/5301.md?p=4) under [Federal consumer financial law](/usc/12/5481.md?p=14), taking into account such other sums made available to the [Bureau](/usc/12/5301.md?p=4) from the preceding year (or quarter of such year).
  - (2) **Funding cap—**
    - (A) **In general—** Notwithstanding [paragraph (1)](#a-1), and in accordance with this paragraph, the amount that shall be transferred to the [Bureau](/usc/12/5301.md?p=4) in each fiscal year shall not exceed a fixed percentage of the total operating expenses of the Federal Reserve System, as reported in the Annual Report, 2009, of the [Board of Governors](/usc/12/5301.md?p=3), equal to—
      - (i) 10 percent of such expenses in fiscal year 2011;
      - (ii) 11 percent of such expenses in fiscal year 2012; and
      - (iii) 6.5 percent of such expenses in fiscal year 2013, and in each year thereafter.
    - (B) **Adjustment of amount—** The dollar amount referred to in [subparagraph (A)(iii)](#a-2-A-iii) shall be adjusted annually, using the percent increase, if any, in the employment cost index for total compensation for [State](/usc/12/5301.md?p=16) and local government workers published by the Federal Government, or the successor index thereto, for the 12-month period ending on September 30 of the year preceding the transfer.
    - (C) **Reviewability—** Notwithstanding any other provision in this title,[^1] the [funds](/usc/12/5381.md?p=a-12) derived from the Federal Reserve System pursuant to this subsection shall not be subject to review by the Committees on Appropriations of the House of Representatives and the Senate.
  - (3) **Transition period—** Beginning on July 21, 2010, and until the [designated transfer date](/usc/12/5481.md?p=9), the [Board of Governors](/usc/12/5301.md?p=3) shall transfer to the [Bureau](/usc/12/5301.md?p=4) the amount estimated by the [Secretary](/usc/12/5301.md?p=14) needed to carry out the authorities granted to the [Bureau](/usc/12/5301.md?p=4) under [Federal consumer financial law](/usc/12/5481.md?p=14), from July 21, 2010 until the [designated transfer date](/usc/12/5481.md?p=9).
  - (4) **Budget and financial management—**
    - (A) **Financial operating plans and forecasts—** The [Director](/usc/12/5341.md?p=1) shall provide to the [Director](/usc/12/5341.md?p=1) of the [Office](/usc/12/5341.md?p=1) of Management and Budget copies of the financial operating plans and forecasts of the [Director](/usc/12/5341.md?p=1), as prepared by the [Director](/usc/12/5341.md?p=1) in the ordinary course of the operations of the [Bureau](/usc/12/5301.md?p=4), and copies of the quarterly reports of the financial condition and results of operations of the [Bureau](/usc/12/5301.md?p=4), as prepared by the [Director](/usc/12/5341.md?p=1) in the ordinary course of the operations of the [Bureau](/usc/12/5301.md?p=4).
    - (B) **Financial statements—** The [Bureau](/usc/12/5301.md?p=4) shall prepare annually a statement of—
      - (i) assets and liabilities and surplus or deficit;
      - (ii) income and expenses; and
      - (iii) sources and application of [funds](/usc/12/5381.md?p=a-12).
    - (C) **Financial management systems—** The [Bureau](/usc/12/5301.md?p=4) shall implement and maintain financial management systems that comply substantially with Federal financial management systems requirements and applicable Federal accounting standards.
    - (D) **Assertion of internal controls—** The [Director](/usc/12/5341.md?p=1) shall provide to the Comptroller General of the United States an assertion as to the effectiveness of the internal [controls](/usc/12/5301.md?p=18-A) that apply to financial reporting by the [Bureau](/usc/12/5301.md?p=4), using the standards established in [section 3512(c) of title 31](/usc/31/3512.md?p=c).
    - (E) **Rule of construction—** This subsection may not be construed as implying any obligation on the part of the [Director](/usc/12/5341.md?p=1) to consult with or obtain the consent or approval of the [Director](/usc/12/5341.md?p=1) of the [Office](/usc/12/5341.md?p=1) of Management and Budget with respect to any report, plan, forecast, or other information referred to in [subparagraph (A)](#a-4-A) or any jurisdiction or oversight over the affairs or operations of the [Bureau](/usc/12/5301.md?p=4).
    - (F) **Financial statements—** The financial statements of the [Bureau](/usc/12/5301.md?p=4) shall not be consolidated with the financial statements of either the [Board of Governors](/usc/12/5301.md?p=3) or the Federal Reserve System.
  - (5) **Audit of the Bureau—**
    - (A) **In general—** The Comptroller General shall annually audit the financial transactions of the [Bureau](/usc/12/5301.md?p=4) in accordance with the United States generally accepted government auditing standards, as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where accounts of the [Bureau](/usc/12/5301.md?p=4) are normally kept. The representatives of the Government Accountability [Office](/usc/12/5341.md?p=1) shall have access to the personnel and to all books, accounts, documents, papers, records ([including](/usc/12/5301.md?p=18-A) electronic records), reports, files, and all other papers, automated data, things, or property belonging to or under the [control](/usc/12/5301.md?p=18-A) of or used or employed by the [Bureau](/usc/12/5301.md?p=4) pertaining to its financial transactions and necessary to facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and [custodians](/usc/12/5561.md?p=3). All such books, accounts, documents, records, reports, files, papers, and property of the [Bureau](/usc/12/5301.md?p=4) shall remain in possession and custody of the [Bureau](/usc/12/5301.md?p=4). The Comptroller General may obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit without cost to the Comptroller General, and the right of access of the Comptroller General to such information shall be enforceable pursuant to [section 716(c) of title 31](/usc/31/716.md?p=c).
    - (B) **Report—** The Comptroller General shall submit to the Congress a report of each annual audit conducted under this subsection. The report to the Congress shall set forth the scope of the audit and shall include the statement of assets and liabilities and surplus or deficit, the statement of income and expenses, the statement of sources and application of [funds](/usc/12/5381.md?p=a-12), and such comments and information as may be deemed necessary to inform Congress of the financial operations and condition of the [Bureau](/usc/12/5301.md?p=4), together with such recommendations with respect thereto as the Comptroller General may deem advisable. A copy of each report shall be furnished to the President and to the [Bureau](/usc/12/5301.md?p=4) at the time submitted to the Congress.
    - (C) **Assistance and costs—** For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard to [section 6101 of title 41](/usc/41/6101.md), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes. Upon the request of the Comptroller General, the [Director](/usc/12/5341.md?p=1) of the [Bureau](/usc/12/5301.md?p=4) shall transfer to the Government Accountability [Office](/usc/12/5341.md?p=1) from [funds](/usc/12/5381.md?p=a-12) available, the amount requested by the Comptroller General to cover the full costs of any audit and report conducted by the Comptroller General. The Comptroller General shall [credit](/usc/12/5481.md?p=7) [funds](/usc/12/5381.md?p=a-12) transferred to the account established for salaries and expenses of the Government Accountability [Office](/usc/12/5341.md?p=1), and such amount shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report.
- (b) **Consumer Financial Protection Fund—**
  - (1) **Separate fund in Federal Reserve established—** There is established in the Federal Reserve a separate [fund](/usc/12/5381.md?p=a-12), to be known as the “[Bureau](/usc/12/5301.md?p=4) of [Consumer](/usc/12/5481.md?p=4) Financial Protection [Fund](/usc/12/5381.md?p=a-12)” (referred to in this section as the “[Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12)”). The [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) shall be maintained and established at a Federal reserve [bank](/usc/12/5301.md?p=18-A), in accordance with such requirements as the [Board of Governors](/usc/12/5301.md?p=3) may impose.
  - (2) **Fund receipts—** All amounts transferred to the [Bureau](/usc/12/5301.md?p=4) under [subsection (a)](#a) shall be deposited into the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12).
  - (3) **Investment authority—**
    - (A) **Amounts in Bureau Fund may be invested—** The [Bureau](/usc/12/5301.md?p=4) may request the [Board of Governors](/usc/12/5301.md?p=3) to direct the investment of the portion of the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) that is not, in the judgment of the [Bureau](/usc/12/5301.md?p=4), required to meet the current needs of the [Bureau](/usc/12/5301.md?p=4).
    - (B) **Eligible investments—** Investments authorized by this paragraph shall be made in obligations of the United States or obligations that are guaranteed as to principal and interest by the United States, with maturities suitable to the needs of the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12), as determined by the [Bureau](/usc/12/5301.md?p=4).
    - (C) **Interest and proceeds credited—** The interest on, and the proceeds from the sale or redemption of, any obligations held in the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) shall be credited to the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12).
- (c) **Use of funds—**
  - (1) **In general—** [Funds](/usc/12/5381.md?p=a-12) obtained by, transferred to, or credited to the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) shall be immediately available to the [Bureau](/usc/12/5301.md?p=4) and under the [control](/usc/12/5301.md?p=18-A) of the [Director](/usc/12/5341.md?p=1), and shall remain available until expended, to pay the expenses of the [Bureau](/usc/12/5301.md?p=4) in carrying out its duties and responsibilities. The compensation of the [Director](/usc/12/5341.md?p=1) and other employees of the [Bureau](/usc/12/5301.md?p=4) and all other expenses thereof may be paid from, obtained by, transferred to, or credited to the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) under this section.
  - (2) **Funds that are not Government funds—** [Funds](/usc/12/5381.md?p=a-12) obtained by or transferred to the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) shall not be construed to be Government [funds](/usc/12/5381.md?p=a-12) or appropriated monies.
  - (3) **Amounts not subject to apportionment—** Notwithstanding any other provision of law, amounts in the [Bureau](/usc/12/5301.md?p=4) [Fund](/usc/12/5381.md?p=a-12) and in the Civil Penalty [Fund](/usc/12/5381.md?p=a-12) established under [subsection (d)](#d) shall not be subject to apportionment for purposes of [chapter 15](/usc/31/chstII/ch15.md) of title 31 or under any other authority.
- (d) **Penalties and fines—**
  - (1) **Establishment of victims relief fund—** There is established in the Federal Reserve a separate [fund](/usc/12/5381.md?p=a-12), to be known as the “[Consumer](/usc/12/5481.md?p=4) Financial Civil Penalty [Fund](/usc/12/5381.md?p=a-12)” (referred to in this section as the “Civil Penalty [Fund](/usc/12/5381.md?p=a-12)”). The Civil Penalty [Fund](/usc/12/5381.md?p=a-12) shall be maintained and established at a Federal reserve [bank](/usc/12/5301.md?p=18-A), in accordance with such requirements as the [Board of Governors](/usc/12/5301.md?p=3) may impose. If the [Bureau](/usc/12/5301.md?p=4) obtains a civil penalty against any [person](/usc/12/5481.md?p=19) in any judicial or administrative action under [Federal consumer financial laws](/usc/12/5481.md?p=14), the [Bureau](/usc/12/5301.md?p=4) shall [deposit](/usc/12/5301.md?p=18-A) into the Civil Penalty [Fund](/usc/12/5381.md?p=a-12), the amount of the penalty collected.
  - (2) **Payment to victims—** Amounts in the Civil Penalty [Fund](/usc/12/5381.md?p=a-12) shall be available to the [Bureau](/usc/12/5301.md?p=4), without fiscal year limitation, for payments to the victims of activities for which civil penalties have been imposed under the [Federal consumer financial laws](/usc/12/5481.md?p=14). To the extent that such victims cannot be located or such payments are otherwise not practicable, the [Bureau](/usc/12/5301.md?p=4) may use such [funds](/usc/12/5381.md?p=a-12) for the purpose of [consumer](/usc/12/5481.md?p=4) education and financial literacy programs.
- (e) **Authorization of appropriations; annual report—**
  - (1) **Determination regarding need for appropriated funds—**
    - (A) **In general—** The [Director](/usc/12/5341.md?p=1) is authorized to determine that sums available to the [Bureau](/usc/12/5301.md?p=4) under this section will not be sufficient to carry out the authorities of the [Bureau](/usc/12/5301.md?p=4) under [Federal consumer financial law](/usc/12/5481.md?p=14) for the upcoming year.
    - (B) **Report required—** When making a determination under [subparagraph (A)](#e-1-A), the [Director](/usc/12/5341.md?p=1) shall prepare a report regarding the funding of the [Bureau](/usc/12/5301.md?p=4), [including](/usc/12/5301.md?p=18-A) the assets and liabilities of the [Bureau](/usc/12/5301.md?p=4), and the extent to which the funding needs of the [Bureau](/usc/12/5301.md?p=4) are anticipated to exceed the level of the amount set forth in [subsection (a)(2)](#a-2). The [Director](/usc/12/5341.md?p=1) shall submit the report to the President and to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives.
  - (2) **Authorization of appropriations—** If the [Director](/usc/12/5341.md?p=1) makes the determination and submits the report pursuant to [paragraph (1)](#e-1), there are hereby authorized to be appropriated to the [Bureau](/usc/12/5301.md?p=4), for the purposes of carrying out the authorities granted in [Federal consumer financial law](/usc/12/5481.md?p=14), $200,000,000 for each of fiscal years 2010, 2011, 2012, 2013, and 2014.
  - (3) **Apportionment—** Notwithstanding any other provision of law, the amounts in [paragraph (2)](#e-2) shall be subject to apportionment under [section 1517 of title 31](/usc/31/1517.md) and restrictions that generally apply to the use of appropriated [funds](/usc/12/5381.md?p=a-12) in [title 31](/usc/31.md) and other laws.
  - (4) **Annual report—** The [Director](/usc/12/5341.md?p=1) shall prepare and submit a report, on an annual basis, to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives regarding the financial operating plans and forecasts of the [Director](/usc/12/5341.md?p=1), the financial condition and results of operations of the [Bureau](/usc/12/5301.md?p=4), and the sources and application of [funds](/usc/12/5381.md?p=a-12) of the [Bureau](/usc/12/5301.md?p=4), [including](/usc/12/5301.md?p=18-A) any [funds](/usc/12/5381.md?p=a-12) appropriated in accordance with this subsection.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 111–203, title X, § 1017, July 21, 2010, 124 Stat. 1975; Pub. L. 119–21, title III, § 30001, July 4, 2025, 139 Stat. 126.)

## Notes

### Editorial Notes

### References in Text

This title, referred to in subsec. (a)(2)(C), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables.

### Codification

In subsec. (a)(5)(C), “section 6101 of title 41” substituted for “section 3709 of the Revised Statutes of the United States (41 U.S.C. 5)” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

### Amendments

2025—Subsec. (a)(2)(A)(iii). Pub. L. 119–21 substituted “6.5 percent” for “12 percent”.