Treasury’s OFAC Adjusts Civil Monetary Penalties

Effective June 14, 2019, The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is adjusting civil monetary penalties for inflation pursuant to the
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

According to the Office of Management and Budget, the adjustment multiplier for the year 2019 is 1.0255. In order to complete the 2019 annual adjustment, each current CMP (Civil Monetary Penalty) is multiplied by the 2019 adjustment multiplier.

OFAC currently is authorized to impose CMPs pursuant to five statutes: The Trading With the Enemy Act (50 U.S.C. 4301–4341, at 4315) (TWEA); the International Emergency Economic Powers Act (50 U.S.C. 1701–1706, at 1705) (IEEPA); the Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 104–132, 110 Stat. 1212–1319, at 1250; 18 U.S.C. 2339B) (AEDPA); the Foreign Narcotics Kingpin Designation Act (Pub. L. 106–120, 113 Stat. 1626– 1636, at 1632; 21 U.S.C. 1901–1908, at 1906) (FNKDA); and the Clean Diamond Trade Act (Pub. L. 108–19, 117 Stat. 631–637, at 634; 19 U.S.C. 3901–3913, at 3907) (CDTA).

Here are the existing and new maximum CMP amounts:

TWEA: Previous Max. $86,976; New Max. $89,170

IEEPA: Previous Max. $295,141; New Max. $302,584

AEDPA: Previous Max. $77,909; New Max. $79,874

FNKDA: Previous Max. $1,466,485; New Max. $1,503,470

CDTA: Previous Max. $13,333; New Max. $13,669

Complete information regarding the adjustment of all CMPs can be found at this link to the Federal Register.

Suzanne DeCuir, Global Trade Expertise