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Abstract: 

Recent regulatory action implementing a government-wide statutory mandate raising the dollar amounts of civil money penalties (CMPs) imposed on financial institutions, senior executive officers, board members, and other institution-affiliated parties (IAPs) have heightened both the government’s expectations with respect to an institution’s control environment and the risk of more severe sanctions for operational and compliance failures. Contemporaneously, the Office of the Comptroller of the Currency has reconfigured its CMP assessment framework, adopting two matrices, one specifically designed for institutions and the other for IAPs. The new matrices set lower thresholds for triggering sanctions and provide for the imposition of higher penalties, increasing both institutional and individual exposure. This article explores the nature and impact of these actions and offers practical insights for managing the enforcement process.

Keywords: civil money penalty; civil money penalty assessment procedures; risk management; compliance; corporate governance

Affiliations:  1: Dinsmore & Shohl LLP; 2: Dinsmore & Shohl LLP; 3: Dinsmore & Shohl LLP; 4: Dinsmore & Shohl LLP; 5: Dinsmore & Shohl LLP.