2020Directory_FNL_FlippingBook

Compliance Obligation

Federal Laws that Apply

Violations / Penalties

OFAC SDN List Clearance Continued...

TradingWith the Enemy Act (TWEA), International

• AEDPA: $500,000 per count against corporations, and 10 years imprisonment and $250,000 per count for individuals. 18 U.S.C. § 2332d; 18 U.S.C. § 3571; 31 C.F.R. § 596.701. • FNKDA: 10 years imprisonment and fine of not more than $10,000,000. 31 C.F.R. § 598.701. • CDTA: for individuals, $250,000 per count and 10 years imprisonment; for corporations, $500,000. 19 U.S.C. § 3907; 18 U.S.C. § 3571. • ECOA violations (FTC): The FTC can enforce violation of ECOA as a violation of the FTC Act, with potential for damages of up to $42,530 per violation if the FTC enters into an enforcement decree. 15 U.S.C. § 1691c(c); 16 C.F.R. § 1.98. • ECOA violations (DOJ): If unable to obtain compliance, the FTC may refer ECOA violations to the U.S. Dept. of Justice (DOJ). The DOJ may pursue a civil action where creditors are engaged in a pattern or practice of violations, and obtain such relief as may be appropriate, including actual and punitive damages and injunctive relief. 15 U.S.C. § 1691e(g)-(h). • ECOA violations (private right of action): Individuals may seek recovery individually or as a class for actual damages. In addition, punitive damages are available but limited to $10,000, but in a class action total recovery must not exceed the lesser of $500,000 or 1% of dealer’s net worth. Equitable and declaratory relief are also available. In addition, costs and reasonable attorney’s fees can be recovered by individuals or a class. 15 U.S.C. § 1691e; 12 C.F.R. § 202.16. • FCRA violations: $3,993for 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

HOT TOPICS

Emergency Economic Powers Act (IEEPA),

Antiterrorism and Effective Death Penalty Act (AEDPA), Foreign Narcotics Kingpin Designation Act (FNKDA), Clean Diamond Trade Act (CDTA) Continued... ECOA (including Regulation B) and FCRA

Adverse Action Notices

221 2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE