2020Directory_FNL_FlippingBook

2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

Compliance Obligation

Federal Laws that Apply

Violations / Penalties

Risk-Based Pricing Rule Notice

FCRA

$3,993 for a knowing violation, which constitutes a pattern or practice of violations. 15 U.S.C. § 1681m(h) (8); 15 U.S.C. § 1681s; 16 C.F.R. § 1.98. Any violation also violates FTC Act § 5, with potential for damages of up to $42,530 per violation if FTC enters into an enforcement decree. 15 U.S.C. § 1681s(a)(1); 16 C.F.R. § 1.98. No private right of action. 15 U.S.C. § 1681m(h)(8). $3,993 per violation for a knowing violation, which constitutes a pattern or practice of violations. 15 U.S.C. § 1681s(a)(2)(A); 16 C.F.R. § 1.98. Any violation also violates FTC Act § 5, with potential for damages of up to $42,530 per violation if FTC enters into an enforcement decree. 15 U.S.C. § 1681s(a)(1); 16 C.F.R. § 1.98. No private right of action. 15 U.S.C. § 1681m(h)(8). • IEEPA violations: Up to the greater of $302,584 or twice the amount of the underlying transaction. • AEDPA violations: Up to the greater of $77,9,874 or twice the amount of which a financial institution was required to retain possession or control. • FNKDA violations: Up to $1,503,470 • CDTA violations: Up to $13,669. • Civil penalties per violation: • TWEA violations: Up to $89,170.

Red Flags Rule

FCRA

OFAC SDN List Clearance

TradingWith the Enemy Act (TWEA), International Emergency Economic Powers Act (IEEPA), Anti- terrorism and Effective Death Penalty Act (AEDPA), Foreign Narcotics Kingpin Designation Act (FNKDA), Clean Diamond Trade Act (CDTA)

31 C.F.R. § 501, App. A. • Criminal penalties:

• TWEA: Fines up to $250,000 for individuals and $1,000,000 for organizations or twice the pecuniary gain or loss from the violation 10 years imprisonment. 31 C.F.R. § 501.701(b). • IEEP: imprisonment for not more than 20 years and a fine of not more than $1,000,000. 50 U.S.C. § 1705.

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